Wipro says IT sector's Q1 not hit by tensions

KOLKATA: The recent threat of war between India and Pakistan has not

significantly affected domestic IT firms’ earnings in April-June, the head of

India's third-largest software services exporter said on Thursday.

"It only happened for one month. It's not going to affect very

significantly," said Azim Premji, chairman of Wipro Ltd., referring to the

tensions between the two neighbours. He was responding to reporters who asked

him whether border tensions over the disputed Kashmir region would impact

first-quarter results.

Premji also said the US government withdrawal on Wednesday of its warning

strongly urging Americans to leave India should result in business travel

picking up. "It (tensions) had deferred some visits. I think most of these

visits will revive by July," he said.

India's leading software industry body Nasscom said earlier this month that

tensions between nuclear-capable India and Pakistan had "not led to any

loss of business" for the country's software sector. Indian IT exports are

estimated to grow seven-fold to $57 billion by 2008.

Premji also said that Wipro would set up a development center in Kolkata,

capital of the eastern state of West Bengal. "We will spend about Rs 500

million ($10.23 million) setting up this development center by 2004."

(C) Reuters Limited.