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Last Updated: Friday, 20 April 2007, 16:46 GMT 17:46 UK
Outsourcing boosts Indian firms
Wipro is based in the booming technology centre of Bangalore
Indian software firms have seen profits boom in the first three months of 2007 as European and US firms outsourced operations to cut costs.

Bangalore-based Wipro saw net profit rise 44% to 8.61bn rupees (103m; $205m) in the first quarter, from 5.97b rupees a year earlier.

Wipro rival Satyam Computer saw profits up 39% to 3.58bn rupees for the period.

Many European and US firms are moving back-office and software development to India, where skilled labour is cheaper.

Another factor attracting UK and US companies to India is the large number of English-speaking workers.

No concerns

Wipro offers IT, software, and call centre services to foreign clients, which includes Cisco and Nortel.

Both Wipro and Satyam said they expected strong growth in months ahead, and their earnings topped market expectations.

"There is nothing in terms of the environment in Europe, Japan or the US which is a cause of concern," Wipro chairman Azim Premji told a conference.

He added that there were no signs that the US economy was going to slow down.

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