Wipro profits jump on outsourcing

Western companies are increasingly outsourcing IT services to India

The Indian technology firm Wipro has seen annual profits soar 58% on the back of booming demand from foreign companies for outsourcing IT services.

Profits rose to $363m in the 12 months ending 31 March from a year earlier. Sales totalled $1.87bn, up 39% on the $1.35bn it made last year.

Outsourcing services to Western firm alone contributed $1.39bn to sales, up from just under $1bn in 2004.

Chairman Azim Premji said Wipro also increased the margin it makes on sales.

As well as information technology, the company has consumer care, lighting and baby product businesses.