Wipro vertical focus key to UK growth

India-based offshore giant Wipro is eyeing up potential acquisitions to boost the vertical focus of its IT services offering across Europe.

Wipro said it is looking to take on competitors such as IBM Global Services and Accenture for more high-end consulting work.

Kees Ten Nijenhuis, the firm's vice president of enterprise sales in Europe, told vnunet.com: "We are acquiring companies at the moment in continental Europe. In the UK you will see us develop vertical sectors.

"We're not as strong in some areas as we would like to be. We will invest in boutique companies or vertical market specialists that will expand our service capabilities in these areas."

Wipro has earmarked utilities and the public sector as areas of focus. The firm believes that confidence in the offshore model will see companies consider moving more strategic services overseas.

Phil Codling, analyst at Ovum Holway, said that despite Wipro's ambitions to move into managed services and other areas of outsourcing, the bulk of its deals were still fairly low level.

"Wipro has managed to get a good reputation in the market. But to be fair they've not taken on projects that could go seriously wrong, so the stakes are a lot lower," he said.

The company is also expanding abroad as competitive pressures in India drive up costs. The opening of a software factory in the Philippines is due to be announced this quarter.

"The advantage [of the Phillippines] is that there is a strong link to the US, but there is very limited availability of trained and skilled resources," said Kees Ten Nijenhuis.

"We're also investing in China, but although labour is cheap, the political and economic situation is very explosive. It's tough to do business and the infrastructure is not in place."