WIPRO: profits with new businesses

Wipro continued its upward growth trajectory on the telecom software and network integration services front. According to VOICE&DATA estimates the total revenue from these businesses jumped over 100 percent to Rs 2,365 crore in FY 2004–05, from Rs 1,129 crore in FY 2003–04.

With the IT market looking up and revival of investments being sunk in the networks and telecom software, the telecom continues to be one of the strong areas for the company both nationally and globally. In the last financial year, the telecom software component was around Rs 1,879 crore.

Wipro provides product-engineering services to telecom vendors, terminal and mobile device vendors, OSS/BSS, telecom enterprise applications; and BPO services to telecom service providers, network infrastructure integration and management services to large enterprises and carriers. Around 80 percent of its telecom revenue comes from the product engineering services and the balance is from product-reselling. Equipment vendors bring 86 percent of revenue and the rest is from carriers.

President, Telecom Solutions Division: Dr AL Rao
Company Head: Vivek Paul, vice chairman and president
Area of Operation: Telecom software, network integration, BPO services, OEM R&D and testing and security services
Address: Wipro Technologies Doddakannelli Sarjapur Road Bangalore - 560 035
Tel: +91 (80) 28440011
Fax: +91 (80) 28440256
Website: www.wipro.com


V&D estimates	CyberMedia Research

Highlights

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In the last financial year, the telecom software component was around Rs 1,879 crore

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OEM segment was a high growth and focus area

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New programs and initiatives have changed the business mix for Wipro

Growth in product engineering services has come from: broadband, wireless (infrastructure and handset), and next-generation networks (including voice). OSS/BSS is the key driver in telecom carrier space. In terms of percentages they contribute as follows: broadband-24; wireless infrastructure and mobile handset-20; OSS/BSS, network integration, and infrastructure-18; next-generation network including voice-17; optical technologies-4; and other technologies-17.

For Wipro Infotech, network integration and security segment brought over Rs 486 crore in revenues. This was almost 50 percent jump from Rs 323 crore in FY 2003-04. Last year Wipro bagged some good orders from Bharti, NHAI, Toyota Kirloskar, Indian Overseas Bank, Union Bank of India, BSNL Broadband project and Polnet. Wipro also saw a major shift of its customers towards buying more of services. The services component in the integration business witnessed a 100 percent jump in revenue terms.

With the convergence of various technologies on a single network around the corner, Wipro would be planning to cash on its experience and expertise with networks and software. Consultancy would be another area where the company would be posing good competition to others.

For Wipro, OEM segment was a high growth and focus area. There were lot of development programs and initiatives in the area of convergence, seamless mobility, and voice over IP. This year also these areas would be strong drivers and more development programs would be framed around these areas.

New programs and initiatives have changed the business mix for Wipro. Now there is more new development, when compared to the previous years where it was more of sustenance and less of development.

"Convergence has forced vendors to focus on IMS development"

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