Wipro changes top management, after slow growth

The company’s revenue from IT services grew slower than for its Indian competitors

Wipro will replace the joint CEOs of its IT business with a single chief executive, the company said Friday after reporting lackluster results.

Wipro, India’s third largest outsourcer, reported seemingly strong year-on-year growth in IT services revenue of 19.3 percent for the quarter ended Dec. 31. The rise to US$1.34 billion reflects an overall pickup in business for large Indian outsourcers. Wipro reports results in accordance with International Financial Reporting Standards (IFRS).

But that growth, while strong, was lower than that achieved by India's top two outsourcers: Tata Consultancy Services, and Infosys Technologies.

Wipro’s growth in the last several years has been a mix of both organic growth and through acquisitions, said Jimit Arora, research director at Everest. “In 2010 the company has not made significant acquisitions,” he added.

The company said its operating margins were flat, as there were fewer working days, and lower staff utilization in the quarter. Wipro, which has other businesses, including in lighting and consumer care, does not break out a net profit figure for its IT services business.

Girish Paranjpe and Suresh Vaswani, the current joint CEOs of Wipro’s IT business will be replaced from Feb 1 by a single CEO, T K Kurien who was formerly head of a new green technology business at Wipro.

The joint CEO structure was one of the key factors that successfully helped the company navigate the worst economic crisis in our time, Wipro said. With the change in environment, there is a need for a simpler organization structure, it added.

Indian outsourcers are seeing an improvement in business from clients in the U.S. and Europe, but there is still uncertainty. It is still early to say that the outsourcing industry has returned to long term growth, said Siddharth Pai, a partner at TPI, a sourcing data and advisory firm.

Increased hiring in India has helped push up costs and increase staff attrition. Wipro added 3,591 people in the quarter, taking the total staff as of Dec. 31 to 119,491. An appreciating rupee is also reducing the funds available to Indian outsourcers to run their operations in the country, thus impacting margins.

Wipro added 36 new clients in the quarter.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags outsourcingbusiness issuesservicesfinancial resultsoffshoringwiproInfosys TechnologiesTata Consultancy Services

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Brand Post

PC World Evaluation Team Review - MSI GT75 TITAN

"I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it."

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?