Overview Key strengths Key risks Healthy deal wins, strategic investments, and large recurring revenue base provide good earnings visibility. Smaller scale and lower profit margins than that of peers at a higher rating level. Cost advantage on offshore resources and global service delivery support healthy margins. Margin pressure from high attrition, wage inflation, and investments to scale up digital capabilities. Strong operating cash flows with low capital spending requirements provide sufficient headroom for discretionary spending. Demand for information technology (IT) software services is likely to remain resilient over this period, with spending focused on digital transformation and cloud-related services. Wipro?s strategic investments over the past few years position it favorably to cater to this demand. For instance, The Capital Markets
