Some  Wipro customers have resorted to cancelling, delaying or scaling down deals due to global economic slowdown.

Girish Paranjpe, joint chief executive, Wipro, was hopeful that business would improve in the first quarter beginning April 2009 following a slowing in the last quarter. He said that customers cannot continue to cut down on spending indefinitely.

Americas account for half of Wipro’s revenues. The company makes a quarter of its revenues from the financial sector globally. Paranjpe said that Wipro was trying to offer customers alternatives to cut down costs rather than reducing prices. He was optimistic that companies like Wipro could benefit as customers preferred reliable partners during the economic crisis.

While Paranjpe admitted that the situation has resulted in a tougher market, it would also create medium term prospects as customers need to assimilate and reorganize their business. According to him, the downturn would also offer opportunities for acquisitions due to reduced valuations. Large acquisitions during this time are also possible after the $600 million acquisition of Infocrossing. The time is also appropriate to hire personnel, who otherwise might have been unaffordable. Wipro would prefer acquisitions outside India in order to globalise its personnel.

About the fluctuation in Rupee value, Paranjpe said that the company would focus on generating profits from business. While Wipro will be cautious about spending, it will not freeze hiring or travel, said Paranjpe.

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