We see discretionary budgets actually cut, maybe flat to reducing a little bit going forward as far as the US is concerned. Europe on the other hand just the opposite, said TK Kurien, CEO, Wipro.
TK Kurien, CEO, Wipro in an interview to CNBC-TV18’s Menaka Doshi from the sidelines of the WEF at Davos spoke on the business outlook going forward in an scenario where there have been fluctuations in the currency.
Below is the transcript of TK Kurien’s interview with CNBC-TV18's Menaka Doshi.
Q: How do you think the fluctuations in the currency impacted revenue growth for Wipro?
A: Let me start with the macro view as far as the economy is concerned which in some way impacts us as a business. So, if you look at the US, till end of last year we were all very bullish about the US in terms of discretionary demand. We are going to see a change this year primarily because of US dollar. The US dollar has been very strong vis-à-vis the other currencies and with that what we expect to see is more and more pressure on cost for all the US players. So, the outsourcing business would start picking up as far as the US is concerned.
We see discretionary budgets actually cut, maybe flat to reducing a little bit going forward as far as the US is concerned. Europe on the other hand just the opposite. We see discretionary budgets going up clearly in Europe and surprisingly we are seeing a pretty strong uptick as far as discretionary budgets go especially as they start spending money which they have not done all these years. The other piece of course is that if you look at Asia, and the rest of the world that is how I would put them as the emerging markets are going to get hit pretty badly. While they still have business to give what we are finding is currency is really taking a big toll. And India is the other dark horse. We have really not seen a massive pick up as far as India is concerned.
Q: Quite the contrary the largest India players TCS they have had some rough quarter when it comes to India business.
A: There are some fundamental issues in terms of the acceleration of business from the government, that hasn't happened yet. Private sector customers are still spending money but they are primarily spending money in outsourcing and the deals are not that big.