Over the last 8-10 quarters, we have consistently focused on specific areas such as digital and localisation. We’ve remained steady on them. Second, we looked at aspects of our businesses that needed change. For example, in India and West Asia, we sought to realign our offerings in communication, health, and engineering services. We are seeing the outcome of those decisions.
The management had said the deal pipeline remained robust, with sound conversion. Can you give numbers regarding the total contract value (TCV) of the deals signed? Has the conversion ratio improved?
We don’t publish numbers. I can tell you that the deal momentum is higher in the September quarter versus the June quarter, and that we are finalising interesting deals. By interesting, I mean ‘good digital’ deals. Further, we are inking pacts across segments.
The commentary coming from some of Wipro’s peers on outlook in financial services and retail verticals is not that bright. What is your take?
The banking, financial services and insurance (BFSI) as well as consumer verticals are similar in the sense that they are both digital in nature. When I say digital, I mean Cloud, cyber-security, and new engineering methods. Those are the places we have invested in.
Consequently, it is a good match between what we do and what the client's needs are. On BFSI, is slow right now but is an early adopter for digital technology.
Wipro separated its India business focussing on public sector enterprises some time back, as it was a drag on the balance sheet. However, the ICICI Bank deal seemed to have led to a renewed focus on India?
India comprises two pieces: one is for regular clients and the other for government clients. The reason we separated them was that the nature of deals is different. For instance, in some government deals, valuation processes are sometimes longer. There is a realignment in the team, with the private sector piece in India now being led by a new person.
The improvement in operational metrics is not reflecting on the rise in revenue per employee. Does it indicate pricing pressure?
It is because of many factors. The nature of the work, whether you use contracting labour or not, and the geography where the work happens, all matter. Further, some businesses are resource-intensive while others are asset-intensive. The output you see is a mixture of all of this.