Enterprise futuring, full-stride cloud, engineering edge, and consulting are the four new business lines that Wipro announced as part of its new organisational structure. According to experts in the field, the new strategy will benefit the Bengaluru-based company in accelerating decision-making and narrowing its focus on cloud products.
“The new model helps Wipro make faster decisions and channel its investments more effectively. The faster the decision-making, the more effective it will be staying ahead of this market,” said Phil Fersht, founder, HFS Research.
According to the exchange filing, Wipro has established four global business lines under the new model, organised on the cloud, enterprise technology, business transformation, engineering, and consulting. The modifications will become effective on April 1.
The corporation is moving towards a digital business model known as the "one office" concept, where barriers between the front and back offices are eliminated. In addition, judgements can be made by anticipating events rather than solely responding to data archives of the past.
“It is about understanding and discovering the data you must have to win in your market – right now in real time and in the future – as the market environment keeps evolving. This is Wipro's intent here.
Analysts added that the corporation will narrow its focus on cloud business as a result of the reorganisation. Now, one-third of its profits come from the cloud.
"To meet the changing (needs of clients), we are transforming our Wipro FullStride Cloud Services into its own business line to sharpen our cloud go-to-market strategy, pivoting our cloud infrastructure business to the cloud, accelerating our end-to-end delivery engine, and building differentiated and futuristic solutions that will enable us to capture a bigger share of the cloud market," said Wipro.
The modifications are intended to strengthen alignment to customers' growing business demands and capitalise on emerging possibilities in high-growth market categories, it was said. They are a natural evolution of the transformation path.
A number of prominent executives have left Wipro recently, including company president, Rajan Kohli, and CEO of the Americas, Angan Guha.
As per experts, Wipro's two global business lines that were announced in January 2021—icore and ideas model—may be phased away. They added that Wipro has been falling behind peers in organic growth and that the reset might help it catch up.
Based on Morgan Stanley's study, Wipro's decision to divide its service offerings into four global business lines shows that the company has narrowed its focus and doubled down on its investments and managerial resources to help each of them expand.
Although the concept was different, Tata Consultancy Services (TCS) also underwent an organisational restructuring last year. According to those with knowledge of the situation at the time, the IT firm reorganised its business into four groups in April 2022: acquisition, relationship incubation, enterprise growth, and business transformation. This industry-first model moved away from the "traditional three-dimension (framework) of geography, vertical, or services" and put a laser-sharp focus on clients, their changing digital needs, and faster delivery.
Experts claim that TCS' reorganisation was driven by sales and based on the maturity of its clients, whereas Wipro's strategy is capabilities-driven.
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