Company: WIT
Filing Date: 2025-05-22
Form Type: 20-F
Source: 0000950170-25-076303
Chunk: 53

Company: WIPRO LTD
Filing Date: 2025-05-22
Form: 20-F
Item: Item 4
Chunk 53
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 strategies.
According to the NASSCOM Report, revenue for the Indian IT services sector is expected to witness growth of 4.3% year-over-year, reaching U.S.$ 137.1 billion in fiscal year 2025. The growth is led by AI advancements, cloud-native development and intensified cybersecurity needs. We expect AI to be a key priority for Indian IT services organizations as enterprises look towards AI-powered solutions to address their key priorities and challenges. Infusion of AI in software development, contact centers, customer experience use-cases, knowledge management, and industry-specific use cases will see an uptick. We also expect the setup, expansion, and transformation of the Global Capability Centers in India to be a significant opportunity for the Indian IT services sector.
The NASSCOM Report estimates Engineering and R&D (“ER&D”) services to grow by 7% year-over-year in fiscal year 2025. This growth is driven by the focus on innovation, emphasis on regional manufacturing and the concentration on digital engineering with increased adoption of AI and Gen AI. In calendar year 2024, ER&D services sector witnessed an approximately 47% of volume share in large deals, led by the telecom, automotive, hi-tech and BFSI sectors. Automobile Engineering (AE) and Digital Engineering (DE) appeared as key themes showing a rise of approximately three times and two times year over year.
According to the NASSCOM Report, in calendar year 2025, global IT services spending will be driven by vendor consolidation and cost takeout initiatives. Data and cloud spending will continue to remain strong, while core AI spending is expected to increase with more defined use cases. The top five digital priorities are anticipated to be AI and Machine learning (“ML”) (including GenAI), cybersecurity, cloud and edge, big data and analytics, and robotics and automation, accounting for 60-80% of the total digital spend. We expect that increased interest in taking AI and GenAI solutions to production from proofs of concept will accelerate enterprise investments in AI use-cases, digital and cloud transformation, and data modernization as a foundation to realize the benefits of AI, resulting in significant opportunities for the IT services industry.
However, the recent tariff announcements have resulted in heightened uncertainty and have impacted the demand environment in certain sectors. Considering this, we expect our clients to take a more measured approach on their IT spending and continue to focus on cost optimization, which may result in more cost takeout and vendor consolidation deals. However, the underlying demand for technology re-invention remains strong