India's third largest software company Wipro on Thursday said they are hopeful of some signs of recovery in the second half for the IT outsourcing services sector.
"We are seeing the first signs of stability in the US," Azim Premji, chairman of the $5 billion company, said agreeing that the second half of the present fiscal will be better than the first. Wipro today inaugurated a product qualification and compliance facility in Bangalore which was inaugurated by former President A P J Abdul Kalam.
Owing to the global financial meltdown, most clients have already cut the IT budgets which has affected the Indian IT outsourcing industry.
According to Wipro, the second half of the fiscal is expected to see some kind of a recovery. Girish Paranjpe, joint CEO of Wipro's IT business, said he was expecting no further cuts in the IT budgets of clients unless any drastic development took place.
Regarding the pricing pressure, Paranjpe said, "We should complete our pricing discussion with clients by the end of this quarter, after which things will be clear.The product qualification and compliance facility named Tarang is equipped with capabilities of product design centres and manufacturing organisations across the globe. With an investment of around $8.5 million, the facility will offer consultancy, pre-compliance testing and certification services for various geographies in mechanical, thermal, acoustic, safety and reliability.
"Wipro's agenda to make innovation more purposeful and customer-centric just got stronger with the launch of Tarang. We are confident this new facility will further enhance our ability to provide fully-integrated product development solutions for our customers," said Paranjpe.
