Indian IT services company Wipro Technologies is eyeing acquisitions in the BPO space as it expects the sector to drive the growth for the IT industry.

"Acquisitions are part of our strategy. We keep looking at it. The BPO space is likely to be the next engine of growth for the IT industry, said Suresh Vaswani, joint chief executive of the company's IT business."Also, the economy has improved and the IT demand situation is improving. The deal pipeline is good and the demand environment is building up."

Wipro says that outsourcing deals in the US are more transformational - which completely replace existing technology platforms for clients. Vaswani said customers are not looking for price discounts, but are looking for substantial change in the cost structure. "We are doing more fixed-price projects which now form 40% of the contracts we have. Fixed price models give both our customers and us a win-win situation."