Mumbai: Wipro Ltd., India's third-largest software services exporter said it would rapidly expand its operations in China and probably open a third centre there. The company currently has two centres in China - at Shanghai and Beijing - employing around 100 people, Wipro's chairman Azim Premji said. "But we are rapidly expanding there (in China) and we will continue to expand there," he added.
"At an appropriate stage, we will evaluate whether we need to go to a third location which is not such a large city because probably it will give more stability and better cost," Premji said.
The Bangalore-based Wipro beat forecasts with a 48 per cent jump in fiscal second quarter profit as demand for outsourcing rose. The company said revenue from its global IT services business would rise 34 per cent to $633 million in the current quarter from a year ago and seven per cent from the previous quarter.
Wipro, is also listed in New York and has Cisco Systems Inc and Nortel among major clients.
Wipro's revenue from the US grew 38 per cent from a year ago and accounted for 63 per cent of the total, while revenue from Europe grew 37 per cent. Premji said he is upbeat about business from the US despite a possible slowdown in the world's largest economy.
Wipro added 54 clients and 5,328 employees, while the operating margin for its global IT services unit rose to 24.5 per cent in fiscal second quarter.
Wipro, a diversified firm with minor interests in computer hardware and consumer goods such as lighting and soaps, is also eyeing more foreign acquisitions to accelerate growth. The company, which is valued at $18.2 billion, has made purchases recently, including Finland's Saraware Oy for $31.90 million and US-based Quantech Global Services LLC.