Wipro, Infosys Banking On Internet Of Things To Boost Telecom Business

IT giants like Infosys and Wipro are banking on Internet of Things and cloud computing to create new sources of revenue to revive their telecom business.

"There is huge opportunity due to the potential of Internet of Things," said Ayan Mukerji, chief executive of Wipro's media and telecom strategic business unit and product engineering services. "In many ways, we are going back to centralised computing, i.e., intelligent cloud platforms, digital highways and connected devices. Products and services will increasingly be available across automotive, banking, and other industries," he said.

Internet of Things (IOT) is the interconnection between different objects and devices through the Internet.

"Revenue share from non-core areas is increasing, i.e., in cloud services, networking and data centre services and the IOT opportunity," added. The traditional revenues are on a decline. The voice revenues of many large multinational telecom companies are going down and data revenues are moving increasing.

Although telecom and media share in Wipro's revenues has been dwindling — from 18% in 2011 to 13.8% by March 2014 — it registered a growth of more than 4% in the last two quarters.