Wipro doesn't see cut in client budgets

Wipro Technologies, the global IT services business of Wipro, has seen flat to slight uptick in technology budgets of clients so far in calendar 2008.

"We have got some idea now," said Chief Operating Officer A. Lakshman Rao today said, adding a majority of the customers have given indications of their technology budgets for the year. However, he did not offer more details.

Large Indian companies have been maintaining that clarity on budgets was likely only by late February to March end.

Also, Wipro Technologies continues to see price increases, Rao said. He maintained there were no instances of decline in budgets for this calendar so far.

Last week, investment bank JP Morgan cautioned of instances of technology budget cuts for 2008, especially in financial services, raising the spectre of "some slowdown" in business for the local information technology services sector in the first half of this calendar year.

In a note to customers after meeting large Indian IT players during the week, JP Morgan said it was "hearing mixed commentary from managements with Tata Consultancy Services and Infosys Technologies being cautious about the near-term (Mar 2008 and Jun 2008 quarters)."

On the other hand, Wipro, Satyam Computers, and Cognizant Technology have not indicated any weakness as of now, it said.

On the Bombay Stock Exchange, Wipro's shares closed with a loss of 1.36 per cent at Rs 414.55.