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Slackened Growth: Wipro's performance is marked by an overall slowing of growth in comparison to last year on all fronts. This is evident by drop in growth rates across verticals, service areas, and geographies.
Verticals: Growth slowed down in financial services, healthcare, manufacturing, retail, and transportation with growth rates falling down to low single digits. Most of all, the drop was the highest in media and telecom which witnessed a decline of 3.9%. The bright spot was marked by Wipro cementing its leadership in the energy and utilities space with 18.8% growth, but there was a sharp drop from the previous year's astonishing growth rate of nearly 58%.
Services: In terms of services, ADM and consulting declined by 4.3% and 16.3%, respectively. Global infrastructure services and analytics grew 12.6% and 12.8%, respectively. The infrastructure services business is backed by its IT360 framework. Some other key industry-specific service offerings include Wireless Place, Shoptalk, and Bank in a box. Business application services grew 6.6%.
Geographies: In terms of geos, Americas (accounting for 51% revenues) growth rate dropped to 1.9%, while Europe (accounting for 29%) saw a slowing down to 6.3% from 18.5% the previous year. The company admits to lower penetration levels in continental Europe, but investments in France and Germany are expected to deliver growth in this area. The highest growth region was APAC and other emerging markets (accounting for 24% of revenue), while India and Middle East grew by mearly 0.7%, primarily because of slowing Indian economy. The Middle East marked fared good for Wipro. Wipro announced that it has won a three year strategic managed services contract from Emirates NBD to deliver end-to-end service transition and transformational services.
Bright Spots: Wipro's banking practice has partnered with over 50 of the world's leading banks including four of the top five banks worldwide and leading banks in the Asia Pacific region, while its insurance business boasts of several Fortune 100 insurance clients. Wipro has applied for 53 new patents and the company was granted patents for 15 applications. Wipro Technologies also announced that it has been appraised at Capability Maturity Model Integration CMMI-DEV 1.3 Level 5.
Demerger: During the year, Wipro completed the demerger of the diversified business to separate the technology business into a separate entity. This is intended to provide sharper focus to the technology business.