Wipro Ltd. (NYSE:WIT) Q3 2020 Earnings Conference Call - Final Transcript
Jan 14, 2020 • 08:00 am ET
Thank you very much, sir. Ladies and gentlemen, we will now begin the question-and-answer session.
The first question is from the line of Sandip Agarwal from Edelweiss. Please go ahead.
Yeah, hi. Happy New Year to the management team. And also, thanks for taking my question. I have just a couple of questions.
Abid, as you mentioned that now over 70% of the workforce for us in US is local, so which means that we have done extremely good job in terms of avoiding any business related risk from long-term perspective. And ideally, it should have given us a lot of advantage on the revenue growth side. Number one. Number two, the amount of work, which we have done in last four, five quarters in terms of deal wins and on the digital side, which is now like 40% of the revenue, our growth momentum should have now matched the industry level or at least closer to our competition, but we are still not seeing that in -- translating into numbers. So two things, which I wanted to understand. One, are we very close to the point where we'll start seeing that transitioning into numbers? And number two, how bad is our non-digital side, which is taking away all the good work or good growth of the digital side? Thanks.
Abidali Z. Neemuchwala
So Sandeep, as you rightly mentioned, our ability to fulfill our order book that has been won and execute engagements in the market, especially in US, with 70% local workforce is clearly a differentiator, especially in digital, where a lot of work happens in agile scrum teams on site, it has been an advantage for us. Clearly, in some of the segments, especially in the banking segment this quarter, we saw a slight slowdown in digital, simply because of furlough and this being the last quarter for a lot of banks. Some of the agile projects which typically also have sort of used for a shorter term given out, sometimes to save cost. You may not get those sort of deals renewed in the last month or so, which may impact digital revenues.
But in general, I feel quite good about both our digital business as well as the banking segment coming back in the next year, and that's why I feel good about our pipeline, both it is -- especially with digital deals becoming larger and coming across various verticals for us. I think the overall business, which you mentioned as non-digital, the 60%, is also part of the modernization and other strategies that we talk about, where we are enabling that part of the business also, so that overall that doesn't become a drag to our overall growth rate, and we've been able to rotate our business from the old to the new relatively well.
Of course, there are still parts of the business, which de-grew and is a productivity that happens over there, but we feel quite good about it on an overall basis.