Wipro has indicated that demand from its Banking, Financial Services and Insurance (BFSI) clients is beginning to improve as organisations redirect savings from cost optimisation initiatives into artificial intelligence investments. The company expects this trend to support future technology transformation programmes and drive higher discretionary spending.
The update comes after Wipro’s BFSI business declined 1.2% sequentially during the June quarter, although it recorded 2.6% year-on-year growth in constant currency.
Speaking during the post-results conference call, Chief Executive Officer and Managing Director Srini Pallia said the company expects momentum in the BFSI segment to improve as previously announced large contracts continue to ramp up and discretionary technology spending gradually returns.
“We also see good momentum in BFSI in the Americas,” Pallia said.
Pallia noted that clients continue to prioritise vendor consolidation and cost optimisation. However, he said many organisations are now using those savings to strengthen their AI capabilities.
“Cost optimisation and vendor consolidation remain the key drivers,” he said. “These savings are getting reinvested by some of our clients into AI capabilities.”
According to Pallia, this shift is expected to create opportunities for new transformation programmes and gradually increase discretionary spending across the sector.
He also said that the BFSI business in Europe and the APMEA region continued to grow, supported by the execution of previously announced large contracts.
Looking ahead, Wipro expects its IT services revenue for the September quarter to be between $2.574 billion and $2.627 billion, representing constant currency growth in the range of -1.5% to 0.5%.
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