IT Spend Mov­ing to Change Phase... Feel Good About it

The Economic Times - - Money -

In a chat with ET NOW, Wipro CEO Abidali Neemuch­wala says the com­pany has a good set of ca­pa­bil­i­ties, and in the long run it has the abil­ity to ex­e­cute well and de­liver re­sults. Edited ex­cerpts: Let us start with your Q1 guid­ance and we were hop­ing for a bet­ter guid­ance. We were hop­ing for a fresh start con­sid­er­ing that mar­kets al­ways do rel­a­tive num­bers and we have heard good things from your peer com­peti­tors. The Q1 guid­ance we have given is based on what we see right now and we are see­ing a large num­ber of op­por­tu­ni­ties which makes us op­ti­mistic about the 1-, 2-, 3% guid­ance. At the same time we are see­ing some soft­ness in cer­tain ar­eas. It in­cludes our en­ergy and util­i­ties busi­nesses — a sig­nif­i­cant part of our busi­ness. It in­cludes cer­tain parts of our bank­ing and fi­nan­cial ser­vices (BFSI) busi­ness, es­pe­cially in Europe. We have in­cor­po­rated all of that in terms of giv­ing the guid­ance.

So ob­vi­ously, we do be­lieve that we have a good strat­egy. We have a good set of ca­pa­bil­i­ties and in the long run, we have the abil­ity to ex­e­cute well and de­liver re­sults.

So as we start FY17, what are the big head­winds and tail­winds for Wipro? Which of your ex­ist­ing head­winds can be­come tail­winds go­ing for­ward? Rather than talk­ing in terms of head­winds and tail­winds, let me tell you what is hap­pen­ing in the en­vi­ron­ment that we see. Across our cus­tomers, we are see­ing that the to­tal IT spend is not go­ing up sig­nif­i­cantly. But what is def­i­nitely hap­pen­ing is the IT spend is mov­ing from what is the run part of cus­tomers busi­ness, it is mov­ing to the change or the dig­i­tal trans­for­ma­tion phase. I feel very good about it be­cause on the run part, a higher level of in­dus­tri­al­i­sa­tion and au­toma­tion which we call hy­per-au­toma­tion is re­quired. A cer­tain level of ser­vice con­sump­tion-based model, cloud-en­abling kind of ac­tiv­i­ties are hap­pen­ing and we are very well placed in th­ese ar­eas.

On Dig­i­tal Play Dig­i­tal is be­com­ing main­stream. With our ca­pa­bil­ity to not only ad­vise and con­sult on dig­i­tal but also bring­ing in de­sign through our De­sig­nit ac­qui­si­tion and then ex­e­cute on Ag­ile, DevOps on the se­cu­rity and cloud area, es­pe­cially with some of the lo­cal in­vest­ments we have made — ir­re­spec­tive of our dig­i­tal pod in New York or Lon­don or other parts of the world where we are able to get clients to­gether, do cus­tomer jour­ney engi­neer­ing and de­liver on the strat­egy and de­sign piece.

Some of the lo­cal cen­tres we are set­ting up are in Moun­tain View, Cal­i­for­nia in the US and in the UK as well. With ac­qui­si­tions in Ger­many for Ger­man work­force and through lo­cal­i­sa­tion in var­i­ous other parts of the world, we are able to de­liver with Ag­ile as well. Th­ese are the op- por­tu­ni­ties that I see.

Ob­vi­ously, in cer­tain sec­tors and ar­eas, time and again we see some soft­ness which con­verts into head­winds that I would not worry about too much right now.

I think we are fo­cussed on hav­ing a good strat­egy. We have iden­ti­fied six strate­gic themes and we are ex­e­cut­ing them, in­vest­ing in IT. I think we are very well dif­fer­en­ti­ated in terms of cap­tur­ing mar­ket share, in terms of what is go­ing on in the mar­ket.

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