Wipro's BFSI segment improving
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Bangalore: Wipro is seeing an uptick in demand at its key financial services segment, driven by consolidation in the banking industry. "Some of it is driven by the consolidation activities we are doing for our clients," said Manish Dugar, Chief Financial Officer of Wipro Technologies at the Reuters India Investment Summit at Bangalore. The company's banking, financial services and insurance segment (BFSI), which accounts for about a quarter of its revenue, has been pressured by project delays and tightened customer spending amid the global slowdown. Rohit Kumar Anand, Analyst with PINC Research said, "BFSI has seen some spending increase in the last two quarters, driven by M&A (mergers and acquisitions)related work and the requirements of compliance jobs is driving the tech spending in BFSI." In the recent past, the global banking sector has seen a slew of mergers and acquisitions in the recent past, and firms such as Wipro are cashing in on the growing need for technology services to hasten integration. Wipro, which competes with larger rivals Tata Consultancy (TCS) and Infosys, has forecast IT revenue to rise between 3.8 percent and 5.7 percent in October-December from the preceding quarter to $1.09 billion to $1.11 billion, exceeding street expectations. The company, which integrates IT systems, develops software applications and manages call centers, posted a 1.9 percent sequential rise in July-September IT revenue. In October, IT research firm Gartner said that global IT spending was likely to decline 5.2 percent in 2009, marking the worst year on record, but it expects a return to growth of 3.3 percent in 2010.

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