Demand for security services remains quite strong and a recent cybersecurity acquisition is boosting profit margins, Wipro executives indicated during the IT consulting firm's July 20 earnings call with Wall Street analysts.
Indeed, Wipro's cybersecurity services revenue grew 34% in Q1 of fiscal 2023 compared to Q1 of fiscal 2022, CEO Thierry Delaporte said during the earnings call.
Wipro has a Top 250 MSSP business unit. But Delaporte did not disclose actual dollar figures for cybersecurity revenues, nor did the company describe the breakdown between consulting and managed security services.
Security Services: How Wipro Differentiates From Rivals
Thousands of IT consulting firms offer security services. But Wipro has been able to differentiate, Delaporte. One example he noted involves the Edgile acquisition of December 2021:
"The Edgile acquisition puts us in a very different space of consulting in cybersecurity, and the rates there reflect very differently than what you would see in a traditional managed services business of Wipro."
Edgile provides cybersecurity transformation and risk services to global organizations. The acquired company’s services include:
- Identity and access management (IAM)
- Information and cloud security
- Risk and security
- Security strategy
Wipro has been an active buyer across the MSP, MSSP, IT consulting and cloud consulting markets.
For instance, Wipro in March 2021 acquired Ampion, an Australia-based provider of cybersecurity, DevOps and engineering services. Ampion strengthened Wipro’s ability to deliver cybersecurity services to organizations in Australia and New Zealand (ANZ), the buyer said at the time of the deal.
Wipro: Overall Revenues
Wipro's overall revenue was $2.7 billion for Q1 of fiscal 2023, up 17.9% from the corresponding quarter last year. Despite the strong growth, the company's revenues and earnings fell short of lofty analyst expectations, according to SeekingAlpha.