Wipro Looks for Silver in the Cloud

June 12, 2012

Indian IT Outsourcers Move Up the Value Chain

This week, Wipro Technologies, one of India's leading IT Services and Business Process Outsourcing (BPO) companies, announced that it is expanding its Infrastructure as a Service (IaaS) capabilities to deliver an enterprise-class global utility computing platform.

We're not surprised.

For the past decade, Wipro and the other Tier 1 Indian outsourcing companies have talked about moving up the value chain to compete more effectively both at home and in international markets. Now they're actually doing it.

This is good news. There comes a time in the evolution of every market when creating enterprise value depends on not just size but what you do - the business you're in, the markets you serve. And while sales growth is important, revenue mix and profitability also matter.

So while traditional IT Services and BPO company valuations are cooling - and in some segments declining - the cloud is hot. Our proprietary MW IT Index shows that for the first quarter of 2012, the SaaS line on our Index still shows unparalleled growth in valuations. We expect this growth to continue for the next 12-24 months at least.

Martinwolf M&A Advisors President and Founder Marty Wolf was quoted today in a post on GigaOM on Wipro's announcement: "Wipro started out as a distributor then became a VAR then a service provider but services are hard to scale. Now Wipro is wrapping solutions around services and infrastructure and releasing it all back to people on a monthly by-seat basis, which is where everyone - Oracle, Microsoft, Amazon, Verizon, and IBM are doing. They'll all get their share of accounts based on what they bring to the table."

To read the entire GigaOM post on Wipro, click here.

To learn more about martinwolf contact Tim Mueller at tmueller@martinwolf.com.

About martinwolf

San Francisco, CA Bangalore, India

With offices in San Francisco and Bangalore, India, martinwolf is a leading middle market M&A Advisory focused on companies with services-based business models. Since 1997, our team has completed more than 100 transactions in six countries. We are a five-year member of the Merrill Lynch PS Referral Network, and were selected as ICICI Bank's (India's leading private bank) exclusive strategic partner for acquiring U.S. IT companies. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com.

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