Wipro has expressed concern over the cancellation of 2G licenses. The Indian IT major has outsourcing contracts with Uninor and Vodafone. While it has termed the 2G ruling as unfortunate, the Vodafone ruling was termed as fortunate.
Wipro, executive director and chief financial officer, Suresh C Senapaty, said, “The contract with Uninor is an ongoing contract”. As and when services are given, the revenue gets generated. Senapaty speaking about the contract with Uninor, said, “Wipro is there and the customer is also there. So contract continues to hold”.
However speaking at the Confederation of Indian Industry’s India corporate investor meet, Senapaty, said, “Chinese government and its corporates are always hand in hand. But in India they are not on one side”. Giving the example of recent telecom scam, he said, telecom players and government were actually opposite party.
He added, “We are definitely concerned as it impacts our customers.” When asked about the size of business they have with Indian telecom players, he said, “We don’t disclose in that way. But India is a significant market for us”. Wipro had 15.4 per cent of its revenue from global media and telecom vertical for the quarter ended December 2011. The telecom vertical includes both equipment and support.
Recently, Uninor, managing director, Sigve Brekke, said, “We told our IT partners that these contracts will be carried on”. He said, Wipro is the only major IT company with which they have contracts. Brekke, said, “Wipro manages the complete IT outsourcing work. They handle servers and IT services”. He declined to give the size of contract with Wipro.
Senapaty said, “Uninor is a very trusted partner and so far it is positive from their communication”. He added that all kind of options would be looked into when asked about if Uninor fails to get the license in the upcoming auction. He said even the government is looking into the case and Uninor also has an alternative proposal. He said, “I am sure and optimistic that something will work out”.
He said, “There is an arm length collaboration between corporate and governments in China, US and Canada. We need consistency in policy and certain bad work by certain persons need not penalise the other stakeholders involved. The ruling on Vodafone was fortunate, but the cost of investment will go up, if uncertainties continue”.
He also said, the fiscal deficit, balance of payment situation, volatile currency (first depreciation of about 12 per cent than an appreciation now) and protest against governments, is making it difficult for corporate to adapt to these volatility. When asked about the recent Nasscom estimate of IT growth between 11 to 14 per cent, he said, “We give our own guidance, and we stay focus on that”.
Source:http://www.mydigitalfc.com/companies/wipro-cfo-rues-gulf-between-india-inc-government-417
