New CEO drives Wipro stock up 70% without stepping into office
MUMBAI: In the five months since he took over as chief executive officer of Wipro Ltd, Thierry Delaporte has yet to visit the Indian outsourcer’s Bengaluru headquarters once. Instead, the 53-year-old has been on a virtual tour from his home in Paris, meeting with managers, workers and customers around the globe.
He’s trying to turn around the struggling business without letLaw ting Covid slow him. Delaporte slashed the top ranks of leadership from 25 people to four. He stepped up acquisitions, with more on the way. Mostly, he focused his attention on customers, meeting with 130 over video conference and helping to land new multi-year contracts with clients in the US and Europe.
The company’s stock has rallied about 70% since his appointment, most among India’s four largest outsourcing firms during that period. It’s a rare victory for Wipro, but one the veteran of France’s Capgemini SE is determined won’t be its last. He hopes to get Wipro back on track after years of stagnating financials.
“There’s a particular momentum in the industry just now, and I want to drive that urgency to put Wipro back where it belongs,” said Delaporte, speaking from Paris in his first interview since assuming the CEO post. “I know I’m good at one thing - getting things done.”
Wipro needs more than enthusiasm. The firm, majority owned by billionaire Azim Premji, has lagged its peers for years. In the fiscal year ended in March, revenues rose 3.9% in constant currency terms, compared with 9.8% at Infosys Ltd. and 7.1% at Tata Consultancy Services Ltd—even though both are far larger. HCL Technologies Ltd, which displaced Wipro as the third-largest in the industry two years ago, grew 17%.
Delaporte’s predecessor, Abidali Neemuchwala, took over in 2016 with similar ambitions. He departed after a turbulent four years and falling well short of a target to build Wipro into a $15 billion company by 2020.
“Thierry seems to have the vision and the commitment, but he has a daunting task,” said Vasupradha Srinivasan, a senior analyst at Forrester Research.
“We know what we need to do to make it work,” Delaporte said. “In my Year One, we’ll accelerate growth; in Year Two, we’ll be at the growth level of our competitors; and in Year Three, we will outdo.” While the US is Wipro’s biggest market now, Delaporte sees opportunity in Europe and Asia. He’s put together a new deals team—headed by a chief growth officer—to go after big client contracts. In the last few weeks, Wipro has landed orders from European energy producers Fortum Oyj and E.On SE.
“I am confident you will see a bolder and a more ambitious Wipro as we move ahead,” said Rishad Premji, Wipro chairman.