Bangalore: Software major Wipro limited is scouting to acquire companies in the US and Europe that could create shareholder value, its chairman Azim Premji said on October 18.

"With our first acquisitions, 'Wipro spectra mind' and 'Wipro healthcare' IT, on track to enhancing share holder value, we are in dialogue with companies that have a strategic fit and can create shareholder value in terms of prospective acquisitions," Premji said in Bangalore.

"We are looking at companies in America and Europe that add strategic value on customers, domain understanding and knowledge, IT consulting skills and companies which we believe synergistically supplement and complement our operations," he said.

However, Premji hastened to add, "in the current environment, we are proceeding cautiously, but with purpose and speed".

The Bangalore-headquartered company on October 18 reported a two per cent year-on- year growth in net profit at Rs 220 crore for the quarter ended September 30, 2002, and a revenue increase of 21 per cent at Rs 1,060 crore.

Responding to a question, Premji said it would take five years for China to reach India's status in software.

"The China threat should always be taken seriously. It keeps us on our toes, it's good," he said.

Premji said the performance of Indian IT industry in the first six months of the current financial year was broadly in line with projections by NASSCOM (National Association for Software Services Companies). "I think, NASSCOM is coming out with an update in two weeks," he added.

Asked if the IT industry wants the government to take any initiative, he said, "government is doing enough. It should invest more in domestic IT, it helps the country".

"There is very high seriousness in government now to invest in it. Government is becoming an important sector for us in the domestic IT market," he added.

"Government is waking up to the value of IT for productivity, for reliability and also for corporate governance. Andhra Pradesh is leader in this," he said.

At present, America accounted for about 60 per cent of India's software exports but the share of Europe and Asia-Pacific were going up rapidly, Premji said.

According to him, a challenging global business environment has made India-based offshore initiatives a key priority for global corporations.

Wipro, he said, was well positioned to take advantage of this opportunity with its wide range of off shore services offerings for enterprise clients and its depth of research and development (R&D) skills for the technology clients.

PTI