Wipro has deliberately reduced employee utilization to create capacity for upcoming client engagements, even as the company continues to hire in close alignment with business demand. The strategy is aimed at ensuring the IT services firm has enough workforce ready to execute deals already in the pipeline.
Speaking after the company’s June quarter results, Chief Financial Officer Aparna Iyer said the lower utilization was a planned move rather than a sign of weaker execution.
“If you look at utilization year on year, we have decreased our utilization to invest in some of the deals that we’re looking at,” Iyer said. “That will also go up through the year. That will also be a lever.”
Iyer said utilization would remain one of the company’s key margin levers over the coming quarters, alongside productivity gains from fixed-price projects, pyramid optimization, and tighter control over administrative expenses.
She noted that Wipro’s operating margin has improved steadily over the past eight quarters, rising from nearly 15% to the 17-17.5% range. However, she said sustaining or improving those levels would depend on how much the company invests in artificial intelligence capabilities.
Chief Human Resources Officer Saurabh Govil said Wipro is not planning aggressive hiring despite a modest increase in headcount during the June quarter. Recruitment will continue to mirror client demand, while productivity improvements are expected to offset the need for significant workforce expansion.
“Our overall headcount and hiring will be linked more to the demand environment, which is right now a bit muted,” Govil said. “But I don’t see a headcount going up drastically. I see that the gains of productivity, which we’re talking about, will have a play as we move forward.”
Govil added that the company is balancing investments in upskilling existing employees with the hiring of specialized AI talent, which remains expensive.
“Some of the AI skills are rare, so they are coming at a premium. So all forces are in play. We’ll have to invest, grow, and make sure we maintain our margins.”
Also Read: Wipro at Rs. 177.39 Ahead of Q1 FY27 Results; Guidance Takes Spotlight
Wipro added 888 employees during the June quarter, taking its total workforce to 2.43 lakh from 2.42 lakh in the previous quarter. Attrition edged up slightly to 13.9% from 13.8%.
The company reported a 0.9% year-on-year increase in quarterly revenue, while operating margins declined by 120 basis points due to a client-specific deal and continued investments in AI. Wipro also secured $3.3 billion in bookings during the quarter, including 13 large deals valued at $1.6 billion.