Azim Premji upbeat on IT services growth, says digital shift an opportunity

Optimism comes even as industry struggles with growing protectionism in the developed markets

Wipro Chairman Azim Premji on Wednesday said that clients are looking to spend on technology in markets such as US, where the economy is little better than the volatile environment seen across the world.

"Looking ahead we continue to see a volatile economic environment but the economic prospects for our main countries of exports are a little better. And clients are looking to spend on technology as tech is becoming a major differentiator," Premji told shareholders of Wipro at the annual general meeting held on Wednesday

Premji's optimism comes even as India's IT services industry is struggling to post higher growth due to underlying technology shifts towards digital and cloud, automation taking over low level jobs and growing protectionism in the developed markets.

"Over the last one year, we saw a further evidence of drastic change in expectations and experiences of consumers and business models. Digital is the central element driving this change," he said. " We believe that IT services companies are key to deliver digital to enterprises."

On Thursday, Wipro will announce its first quarter results, showcasing its performance in a quarter that has seen marginal growth among its peers.

India's largest IT services firm Tata Consultancy Services reported muted numbers on the back of slower growth from clients in banking and financial services and retail. While cross town rival Infosys saw better performance on the back of improved utilisation of its workforce and marginal growth from customers.

Premji said that Wipro was making investments to address the newer opportunities that the shift to digital offered.

"At Wipro, we strongly believe that our success will depend on our ability to redefine and align ourselves with the new global paradigm and the disruptive developments in our industry," he said. "In this context we have made significant investments organic and inorganic in transforming our business offerings to service the new requirements of customers."

Premji also pointed to the change in the brand identity to tap this new opportunity and said the company, besides financial capital for its stakeholders, was also creating social, environmental, intellectual and human value.