14 MAR, 2012, 06.40AM IST, ET BUREAU
BANGALORE: Information technology services provider Wipro Technologies is pursuing contracts worth around $3.5 billion, senior management of the company told investors during a recent road show in Europe.
The Bangalore-based company is pursuing 15 $100-million deals and another 40 deals worth at least $50 million each.
Selective disclosure to groups of investors is seen a pro-active effort by firm, which underwent a management restructuring almost a year ago, to instill confidence among the investors community.
A Wipro spokesperson declined to comment saying the company does not discuss details of deals in pipeline.
The disclosure at the road show hosted by Kotak Securities is in stark contrast to the weak demand commentary that has been coming from the management of Infosys.
Last month, industry body Nasscom pared growth forecast due to weak macro economic conditions in theUnited States and Europe - two geographies that together contribute nearly 80% revenues for Indian ITfirms.
Market analysts tracking large IT firms such as TCS,Infosys, Cognizant or HCL Technologies say typically these firms would be pursuing large deals worth at least $1.5 billion.
Usually, IT firms refer to technology services contracts worth $50-100 million or more as large deals.
"From a large deals perspective $3.5 billion is a fairly good deal pipeline," said Mumbai-based analyst Hitesh Shah, a director at IDFC Securities. "But it obviously depends on how many of these deals they actually manage to win."
Post the management transition at Wipro, when the firm departed from a co-chief executive model and handed over the CEO post to TK Kurien, investors have been keenly watching firm's growth trajectory as well as commentary from its management.
At the time of management succession, Wipro's revenue growth was lagging that of its peers such as Cognizant, Tata Consultancy Service and Infosys.
With Cognizant Technology Solutions taking over Wipro in quarterly revenue run rate to emerge as India's third largest IT services firm, has only added to the pressure on the management to perform or to be seen as doing the right things to bring growth back. Operational metrics at the firm have been improving since Kurien took over.
From a year ago, when only one client was contributing over $100 million in annual revenues, Wipro now has six clients in that revenue bracket, possibly indicative of its sales efforts paying off. Revenue share of the largest client has gone up from 3% of overall revenues a year ago to 4% now.
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