Infosys and Wipro have been ramping up their presence in Europe, especially in the Nordic region in the last two years. Their increased footprint in the region is helping them boost their European revenue.
The acquisitions of companies, opening up of new proximity centres and increased local hiring in Nordic region has helped them raise Europe’s share in their total revenue matrix, say experts.
Also read: Jayakumar S Pillai takes charge as IDBI Bank’s Deputy Managing Director
Infosys and Wipro used to straggle behind peers, TCS and HCLTech, as far as Europe’s revenue contribution was concerned. But in the last four years, their European revenue share has gone up to 27-29%. In FY19, Infosys and Wipro’s European revenue share was 24% and 25.5%, respectively.
TCS and HCLTech’s Europe revenue as a percentage of their total revenue remained stagnant in the range of 29-30% between FY19 to FY23.
“The underlying reason for Infosys and Wipro getting bigger share of European revenue today is that both the companies are becoming aggressive in getting deals, opening up new centres and acquiring companies. Of late, Wipro and Infosys have done acquisitions like Capco and BASE that have helped them scale up in Europe including Nordic region,” said Pareekh Jain, founder of Pareekh Consulting.
In last six months, Infosys opened two proximity centres in Nordic region – Sweden and Norway. Motilal Oswal, in a report said, that in this economic downturn, Infosys is maintaining close proximity with the clients with its near-shore delivery capabilities and localisation strategy.
Jain added Wipro announced last year that it was increasing its investment locally in Norway to help its clients capitalise on digital transformation. The company had revealed its plan to grow from 85 to 350 employees in the country by 2024.
Elena Christopher, chief Research Officer at HFS, said, Wipro’s revenue contribution from Europe was also boosted by Capco (London-headquartered global management and technology consultancy), that was acquired by the company in 2021. “Wipro has a strong presence in Nordic region, including several design pods, including Capco’s own presence in the region.”
Infosys last year completed the acquisition of BASE life science, a leading technology and consulting firm in the life sciences industry in Europe. The Denmark-headquartered BASE is furthering expansion of Infosys’ footprint in the Nordic, says Jain.
Gaurav Vasu, founder, UnearthInsight said Nordics locations are key talent geographies for tech services companies which will help them optimise cost of operations at Europe level and hence headcount growth is expected to be faster than other regions in Europe.
Also read: From toxic to thriving HR Tech’s role in cultivating a healthy workplace culture
Peter Bendor-Samuel, CEO, Everest group said the Nordic has for some time been a hot market for tech services. “Both Wipro and Infosys have CEOs who come from Capgemini and are sensitive to the potential of the European market and specifically to the Nordic markets and hence, we see both firms making moves to strengthen their Nordic positions through acquisitions and other investments.”