Wipro Ltd. said some large client decisions have slipped into the current quarter as customers continue to take longer to approve technology spending, even as the company maintained that its deal pipeline remains healthy.
The comments came after the IT services company reported $1.6 billion in large deal bookings for the June quarter and guided for constant-currency revenue growth of between a 1.5% decline and a 0.5% increase for the September quarter.
Speaking during the post-results conference call, Chief Executive Officer and Managing Director Srini Pallia said clients continue to spend on artificial intelligence, cloud, cybersecurity and data programmes, but approval timelines have become longer.
"The technology investment has not slowed; they have become more focused," Pallia said. "Clients continue to invest in AI, data, cloud modernisation, cybersecurity and productivity-led transformation. Spending today is measured with more rigour and longer decision cycles."
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Longer Sales Cycles
Responding to analysts' questions, Pallia said some client decisions had taken longer, causing certain large deals to slip into the current quarter.
He said Wipro continues to see a healthy pipeline and remains focused on converting those opportunities into signed contracts.
The company reported total bookings of $3.37 billion during the June quarter, while large deal bookings rose 12.9% sequentially to $1.63 billion. Wipro signed 13 large deals during the quarter.
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Demand Remains Selective
Pallia said clients remain focused on projects that improve productivity and generate measurable business outcomes.
He added that enterprises are increasingly prioritising AI-led transformation programmes instead of broader technology modernisation initiatives.
For the September quarter, Wipro expects IT services revenue to be between $2.574 billion and $2.627 billion, implying constant-currency growth of minus 1.5% to plus 0.5%.
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