Indian Outsourcers Roll On with Strong Results

 
 
By Stan Gibson  |  Posted 2006-04-19 Email Print this article Print
 
 
 
 
 
 
 

Wipro and TCS both report strong quarters and record years.

Indian outsourcing powerhouses Wipro and Tata Consultancy Services have both reported strong fourth quarters and stellar yearly results. The announcements came on the heels of a strong quarter reported by Infosys Technologies the week of April 10. Satyam will report its results later this week. Wipro earned net income of $134 million in its fourth quarter, an increase of 34 percent over the same period a year ago. Total revenue for the quarter was $687 million, up 33 percent over the year-ago quarter. "The good thing in this quarter is that every part of Wipro did well," said Ramesh Emani, Wipro president of product engineering services.
Click here to read about EDS move to purchase a majority stake in an Indian outsourcing company.
For 2005, Wipro, headquartered in Bangalore, India, earned $456 million in net income on total revenue of $2.39 billion, year-to-year increases of 28 percent and 30 percent, respectively. Like its Indian peers, Wipro is adding several thousand employees every quarter. Emani said the companys work force, now 53,000, is increasing by about 3,000 per quarter. He said Wipro is currently seeing wage inflation of 8 percent annually, which he said is beneath the industry average of 10 percent.
When is outsourcing the wrong move? Read more here. Wipro scored a coup in the quarter by signing a 10-year, $80 million deal with Indias HDFC bank to manage the banks network. In February, Wipro was the only Indian company to be named as a primary contractor by General Motors, when the auto giant announced the winners in the rebidding of its contracts. Emani said Wipro added 42 new clients in the quarter. TCS (Tata Consultancy Services) ended its fiscal year with $2.97 billion in revenue and profit of $649 million, year-to-year increases of 36 percent and 41 percent, respectively. "An outstanding performance in Q4 has rounded off a defining year for TCS, marked by large deals, strategic acquisitions, expansion in size and its transformation into a global corporation," S. Ramadorai, CEO of TCS, said in a statement. For its fourth quarter, TCS, which bases its U.S. business in New York, reported total income of $837 million, up 44 percent over the year-ago quarter, and profit of $181 million, a jump of 72 percent over the year-ago quarter. The company said it added 89 new customers and 3,571 new employees in the quarter. Check out eWEEK.coms for the latest news, reviews and analysis on IT management from CIOInsight.com.
 
 
 
 
Stan Gibson is Executive Editor of eWEEK. In addition to taking part in Ziff Davis eSeminars and taking charge of special editorial projects, his columns and editorials appear regularly in both the print and online editions of eWEEK. He is chairman of eWEEK's Editorial Board, which received the 1999 Jesse H. Neal Award of the American Business Press. In ten years at eWEEK, Gibson has served eWEEK (formerly PC Week) as Executive Editor/eBiz Strategies, Deputy News Editor, Networking Editor, Assignment Editor and Department Editor. His Webcast program, 'Take Down,' appeared on Zcast.tv. He has appeared on many radio and television programs including TechTV, CNBC, PBS, WBZ-Boston, WEVD New York and New England Cable News. Gibson has appeared as keynoter at many conferences, including CAMP Expo, Society for Information Management, and the Technology Managers Forum. A 19-year veteran covering information technology, he was previously News Editor at Communications Week and was Software Editor and Systems Editor at Computerworld.
 
 
 
 
 
 
 

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