Azim Premji-owned Wipro’s India and Middle East arm Wipro Infotech on Monday closed a part of its multi-year $600 million deal with Aircel.
Both IT firms looking at winning more such deals
BANGALORE: Following its strategy of focusing on the domestic market, Azim Premji-owned Wipro’s India and Middle East arm Wipro Infotech on Monday closed a part of its multi-year $600 million deal with Aircel by selecting Subex Ltd’s platform for revenue assurance and fraud management.
The third-largest tech company will use Subex’s revenue assurance solution, MonetaTM, and fraud management solution, NikiraTM, across all Aircel’s proposed 23 circles.
For Subhash Menon, CEO of Subex, the deal with Wipro was a significant win as it was the first time that it was partnering with an Indian company in domestic market.
“Earlier, we had partnered with Tech Mahindra, but that was in the overseas market. And for the Indian market, we have teamed with IBM, Ericsson and others,” said Menon.
And the two IT firms are now looking at winning more such deals.
Wipro has already seen its domestic contribution surge to over 30%. Its rival Infosys earns only 2% its revenues from India.
“India and Middle East are among the fastest growing markets. We have been declaring growth of 30-40% in our revenues from the region quarter after quarter,” said Anil Jain, vice president - corporate business unit, Wipro Infotech.
The software company has over 140 large deals in India.
However, India continues to be less attractive for tech majors because of its pricing.
“It is one of the lowest in the world. It has one of most competitive prices. Though, it is now improving,” Menon said.
He also felt that the IT budgets of Indian companies have always been squeezed.
Jain, however, said with Indian companies looking at business transformation through technology, there could be a surge in technological investment.
“IT budgets of Indian firms are expanding as they look at transforming their businesses through IT. It’s a different market with different expectations, which need to be addressed differently,” says Jain.
James Abraham, director, The Boston Consulting Group (BCG), also believes that it is time for Indian tech companies to turn their attention on India with dedicated sales, accounting and relationship teams.
p_sharma@dnaindia.net
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