Increased Interest in Offshoring IT Infrastructure Management as Offshore Outsourcing Becomes Mainstream Finds Wipro Study

Business Wire, August 26, 2004

BANGALORE, India -- Offshore outsourcing of IT infrastructure management is likely to be the next big wave, according to results of a survey conducted by Wipro Technologies (NYSE: WIT) recently.

According to the online survey of 145 executives from various industries, more than 30% of the respondents were planning to offshore their IT infrastructure in the next 12 months and another 30% were researching or evaluating the same with active interest. Interest in offshore BPO was also gaining more ground with 34% of the respondents planning to offshore some of their business processes in the next 12 months. Traditional application development and management will continue to lead in organizations' offshore outsourcing plans with more than two third of the respondents planning to offshore them in the next 12 months.

The study found that offshore outsourcing was increasingly becoming a strategic initiative at global organizations. At 38% of the organizations, offshore outsourcing was a now a CxO led initiative. An overwhelming majority of executives (87%) polled said that their offshore outsourcing spends would increase this year. On an average, organizations were likely to increase their offshore outsourcing spends by 34%.

"The findings confirm that offshore outsourcing has now become mainstream, there is a clear indication that various global organizations have gained confidence to offshore new and complex service lines like IT Infrastructure management and critical business processes" said Sudip Banerjee, President - Enterprise Solutions at Wipro Technologies. "And Wipro, being the largest offshore provider of IT infrastructure management and BPO services, is best placed to capitalize on this new wave".

In the offshore outsourcing space, entry barriers were falling and customers were ready to add new vendors. A sizeable number of respondents (40%) were keen on evaluating/initiating relationships with new vendors. Organizations with higher maturity in offshore outsourcing or those planning to offshore newer service lines like IT infrastructure management / BPO were more likely to do so.

Wipro has been recognized by IDC and Forrester Research as the leader in the offshore outsourcing space for its service breadth, partnerships, processes, technical depth and ability to move up the value chain, is best positioned to leverage the increased interest by organizations worldwide in strategic outsourcing

About the study

The study was based on an online survey conducted in April - May 2004 by Wipro. The survey polled 145 senior and middle management executives working in organizations spanning various industries.

Detailed findings are available at www.wipro.com/sourcingsurvey

About Wipro Limited

Wipro Limited is the first PCMM Level 5 and SEI CMM Level certified IT Services Company globally. Wipro provides comprehensive IT solutions and services, including systems integration, Information Systems outsourcing, package implementation, software application development and maintenance, and research and development services to corporations globally.

In the Indian market, Wipro is a leader in providing IT solutions and services for the corporate segment in India offering system integration, network integration, software solutions and IT services. Wipro also has profitable presence in niche market segments of consumer products and lighting. In the Asia Pacific and Middle East markets, Wipro provides IT solutions and services for global corporations.

Wipro's ADSs are listed on the New York Stock Exchange, and its equity shares are listed in India on the Stock exchange - Mumbai, and the National Stock Exchange, among others. For more information, please visit our website at www.wipro.com, www.wiprocorporate.com , and www.wipro.co.in

For any queries, contact: Supratim Sarkar, Manager, Strategic Marketing Ph: 91-80-25056683; email: supratim.sarkar@wipro.com

Forward-looking and cautionary statements

Certain statements in this release concerning our future growth prospects and our ability to successfully complete and integrate potential acquisitions are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding our ability to integrate and manage acquired IT professionals, our ability to integrate acquired assets in a cost effective and timely manner, fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, , liability for damages on our service contracts, the success of the companies in which Wipro has made strategic investments, withdrawal of fiscal governmental incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. Wipro may, from time to time, make additional written and oral forward looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. Wipro does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company. For further information, please visit our websites at www.wipro.com, www.wiprocorporate.com and www.wipro.co.in