The Hindu Business Line : Wipro expects BPO business `on right track'

WIPRO expects its BPO business to be back on the growth trajectory over the next few quarters. Revenue growth in the BPO business was flat during the September quarter compared with the previous quarter, as the company is still in the process of restructuring it. However, on annual basis, revenues were up by about 10 per cent to Rs 181.7 crore in Q2 over corresponding period of the previous year.

Though the BPO business witnessed flat revenues, the profitability improved significantly, said Mr Azim Premji, Chairman, Wipro. "Even though the revenue growth in this business will be muted in the near term, our wins in the transaction processing business during the quarter gives us confidence that we are on the right track," he said.

Wipro BPO is focussing on growing its non-voice-related transaction processing business, expected to account for 40 per cent of its revenues in a year's time, up from the present 16 per cent, Mr Premji said.

Wipro BPO signed master service agreements for finance and accounting related work with a leading broking house in the US, and human resources and analytics work for a US-based manufacturing company during Q2.

It also signed a procurement management deal for a leading auto manufacturer and an order to bill engagement for a data communications major.

Operating margins for Q2 were almost down to 13 per cent and the headcount during the quarter registered negative growth at 12,979 compared to 13,630 in the June quarter, mainly due to the involuntary attrition.

The Chief Financial Officer of Wipro, Mr Suresh Senapathy, said the decline in BPO headcount was due to the ongoing rationalisation in line with a change in business mix.

The company also announced its plans to open a near-shore centre in Romania. The new facility is expected to expand Wipro's language capabilities for the voice, transaction processing and the L1/L2 (Level I and II) support for the infrastructure management.

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