Wipro’s $1 billion AI play will be self-financed: CEO Thierry Delaporte

economictimes.indiatimes.com:

Wipro and putting it back on the growth path “is still work in progress”, said chief executive Thierry Delaporte. In an interview with ET’s Sai Ishwarbharath and Surabhi Agarwal, he said Wipro is betting big on artificial intelligence. Edited excerpts:Q: While most IT companies have spoken about a tough demand situation, what explains Wipro guiding for a revenue decline in the current quarter as well? A: The current economy has driven a slowdown across industries–more pronounced in some industries like BFSI (banking and financial services), which is a third of our business, and in technology, which is another 12% or 13% of our business.

From a market standpoint, (it is) more pronounced in America than in Europe or in Asia Pacific. A slowdown is there, and it is showing in the discretionary spend. Those are typically smaller orders and volume of small deals have actually reduced.

But our volume of large deals has actually expanded. We have also had three super-strong performances in bookings in total contract value (TCV) terms, better than ever before. So there is a volume of business, but the nature of the deal has evolved, because discretionary spend has been cut because clients see the uncertainty.

They aren't sure where the economy is going to go. So they are really careful. Yes, we have shown a decline in revenue.

The range of 3% (-2% fall to +1% growth) shows also the level of uncertainty. It could actually go one way or another. It's just not a growth market right now.

Let's face it. But no one (other IT companies) will do 3%-plus (in terms of sequential revenue growth). So, that is the context we are in.