Wipro Ltd. said demand from banking, financial services and insurance clients is showing signs of improvement as customers begin reinvesting savings from cost optimisation programmes into artificial intelligence initiatives.
The management commentary comes after the company's banking, financial services and insurance business declined 1.2% sequentially during the June quarter, although it remained higher from a year earlier.
During the post-results conference call, Chief Executive Officer and Managing Director Srini Pallia said Wipro expects momentum in the segment to improve as previously announced large contracts ramp up and discretionary spending gradually returns.
"We also see good momentum in BFSI in the Americas," Pallia said.
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Cost Savings Funding AI
Pallia said clients continue to focus on vendor consolidation and cost optimisation, but companies are increasingly using those savings to fund AI programmes.
"Cost optimisation and vendor consolidation remain the key drivers," he said. "These savings are getting reinvested by some of our clients into AI capabilities."
He said the shift could support new transformation programmes and lead to higher discretionary spending over time.
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Client Issues Easing
Europe and the APMEA region continued to report growth in BFSI, supported by the ramp-up of previously announced large contracts, Pallia said.
Wipro's June-quarter results showed the BFSI vertical grew 2.6% from a year earlier but declined 1.2% sequentially in constant currency.
The company expects IT services revenue for the September quarter to range between $2.574 billion and $2.627 billion, implying constant-currency growth of minus 1.5% to plus 0.5%.
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