Wipro

When you are at No.4, you are al­most like a Bear Grylls who has lost his way. But the fog of lost strate­gic op­por­tu­ni­ties and the val­leys of rev­enuedips should only sharpen one’s sur­vival in­stincts. And swiftly enough

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When you are at No. 4, you are al­most like a Bear Grylls who has lost his way. But the fog of lost strate­gic op­por­tu­ni­ties and the val­leys of rev­enue-dips should only sharpen one’s sur­vival in­stincts. And swiftly enough.

Wipro IT Ser­vices wit­nessed some pal­pa­ble in­con­sis­tency & volatil­ity in rev­enue growth dur­ing the FY. The man­age­ment’s ag­gres­sive thrust on cost ra­tio­nal­i­sa­tion could have sti­fled the com­pany’s par­tic­i­pa­tion in a demand en­vi­ron­ment and hence, also slowed down its rev­enue mo­men­tum. The rev­enue clocked dur­ing the year was close to US $8,190 Mn and it grew by 9.56 per­cent on con­stant currency.

Wipro’s strat­egy seems to be one of di­vest­ment of non-core assets and investment in strate­gic ini­tia­tives like IIoT. The com­pany se­cured some well­timed al­liances with ven­dors such as Rock­well Au­to­ma­tion to de­velop IIoT so­lu­tions. The com­pany has bol­stered its port­fo­lio of­fer­ings around some emerg­ing op­por­tu­ni­ties to off­set the strug­gles faced by it­sle­gacy ser­vices busi­ness-like Global In­fra­struc­ture Ser­vices. Mean­while, Mod­ern Ap­pli­ca­tion Ser­vices and Cloud & In­fra­struc­ture Ser­vice seg­ments con­tributed close to 70 per­cent of the busi­ness. Wipro’ Dig­i­tal ser­vices gal­lop­ing at 35 per­cent of rev­enue, ac­qui­si­tions and in-house in­vest­ments – these are ar­eas that are driv­ing sub­stan­tial growth and could help it find fu­ture-for­ward foot­prints.

The dig­i­tal busi­ness is turn­ing out to be a river worth pur­su­ing. This do­main has ex­hib­ited re­mark­able im­prove­ments– Data An­a­lyt­ics and AI seem to be on a good tra­jec­tory and the com­pany’s de­ci­sion to de­ploy HOLMES au­to­ma­tion plat­form on AWS will, in all pos­si­bil­ity, see some no­table tak­ers.Tak­ing the im­pe­tus for­ward on its part­ner­ships, Wipro is of­fer­ing se­cu­rity ser­vices for Mi­crosoft Azure en­vi­ron­ment. Wipro also launched a Loan Ori­en­ta­tion Sys­tem (LOS) for the fi­nan­cial lenders’ seg­ment. Nonethe­less, a de­cline in non-dig­i­tal busi­ness seg­ment is a cause of worry that can­not be eas­ily dis­missed.

Among other pos­i­tive strides worth of note, the pe­riod ex­uded some im­pres­sive flag-posts for Ap­piro. Wipro also won top-crust cus­tomers like New South Wales Roads and Mar­itime Ser­vices Group for $110 mil­lion for the area of ap­pli­ca­tion man­age­ment ser­vices. The well-per­form­ing ar­eas spurred more good news as the com­pany added close to 270-plus cus­tomers in the fis­cal year. What is also com­mend­able here is that its top 10 clients con­tributed close to 20 per cent of the busi­ness.

Zoom­ing in the lens of con­tri­bu­tions fur­ther, we can see that Amer­ica con­tin­ues to be the big­gest con­trib­u­tor in terms of ge­og­ra­phy. It reigns over well with more than 56 per­cent rev­enue share. Like most of its peers, Wipro also in­creased its fo­cus on the US mar­ket and strength­ened its lo­cal­iza­tion abil­i­ties by hir­ing more fresh­ers dur­ing the year. It has a to­tal head­count of close to 186 K with a uti­liza­tion rate around 85 per­cent.

Rev­enues from Euro­pean mar­ket were, al­beit, a bit of a con­cern as the num­bers stayed volatile across the quar­ters all through the fis­cal year. An over­all, and con­tin­ued, drift of down­swing au­gurs some un­cer­tainty here.

Wipro must deepen its in­vest­ments in dig­i­tal and tal­ent ar­eas to lever­age a strong demand en­vi­ron­ment. The com­pany must ac­cel­er­ate the de­vel­op­ment of its IIoT soft­ware port­fo­lio, else it will jeop­ar­dize some pre­cious IIoT op­por­tu­ni­ties sit­ting just around the cor­ner. It can, per­haps, wield pos­si­bil­i­ties with some stronger-po­si­tioned ven­dors that have shaped up bet­ter soft­ware port­fo­lios. The com­pany can gain a new pace and a firm foothold by build­ing an in­te­grated play around its IIoT of­fer­ings and func­tion­al­i­ties (Ex- with Pre­dic­tive An­a­lyt­ics). In other words, half-baked ef­forts and so­lu­tions would not help Wipro pick up the steam it may have lost in legacy and non-dig­i­tal ar­eas. A dig­i­tal kit and a new strate­gic in­stinct will show it the path it needs to fol­low. IT play­ers in the new dig­i­tal forests can­not af­ford to bark up the wrong tree any more.

—ABIDALI Z.NEEMUCH­WALA CEO

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