While the prospects for global economic growth in 2012 seem grim, TK Kurien, CEO of Wipro, tells CNBC that the Bangalore-based IT services firm will in fact benefit from the challenging business environment as its clients look to cut costs and squeeze out growth.
“Whenever people look at costs, we seem to have a very natural inclination to play right there, so we do well when the markets are really hard from a business perspective,” Kurien said in a live interview from the World Economic Forum in Davos.
Wipro’s profit in the three months ended December 31 grew 10.4 percent from the previous quarter to 14.56 billion rupees ($290 million).
Companies are increasingly looking at improving their technology infrastructure as a means of reducing costs, which will be positive for Wipro, feels Kurien.
“Technology is becoming all-pervasive. Many years ago technology used to sit in the back office, it used to be a Chief Investment Officer’s preserve. And now the CIO is actually taking the lead in saying how can I become a technology evangelist…and that again presents opportunities for us,” he said.
Fifty percent of India’s third largest software company’s business comes from the U.S. and about 20 percent from Europe.
Kurien says a lot of the firm’s clients, which include BP , Citigroup and Cisco , are also looking for growth at the moment. “Whenever businesses look for growth there is a wonderful opportunity for companies like us.”
Wipro provides IT services including designing software programs and product engineering. It secured 39 new clients in the last quarter and hired over 5,000 employees at its I.T. services unit, according to a company statement.