Business

Wipro's transition to new model complete; European growth to slow in Q4, says CEO

Updated : January 13, 2021 08:28 PM IST

Wipro is also set to create new leadership roles at the organisation under the new model.

Wipro announced a strong Q3 even as it was in the process of making an organisational shift to a new, leaner structure put in place by CEO Thierry Delaporte after he took over at the helm last July.

Starting January 1, 2021, Wipro overhauled its organisational structure.

The seven Strategic Business Units, Service Lines and nine geographies in the earlier model were replaced with four Strategic Market Units (SMUs) and two Global Business Lines (GBLs).

"The new model is in place, the teams are working in the new format. The transition to the new model is over, and the last 13 days have been excellent," Thierry Delaporte, CEO, Wipro said during an interview with CNBC TV 18 post the company's Q3 earnings.

Wipro is also set to create new leadership roles at the organisation under the new model, including that of a Chief Technology Officer, a Chief growth officer and a chief revenue officer among others.

Chief human resources officer Saurabh Govil said most of the leadership hiring would happen in the March quarter, with some spillover into the next quarter.

"We are making significant investments. The new leaders would come onboard very soon," Govil said.

"Most of the senior hiring that is open will be external," he added.

Wipro delivered better-than-expected numbers in 3QFY21 revenue, with the $ Rev growth at a 36-quarters high at 3.9 percent, constant currency revenue growth at 24-quarter high at 3.4 percent, and Margins at a 22 quarter high at 21.7 percent

However, CFO Jatin Dalal said there will be headwinds and the company will see a lower margin for Q4.

"We have greater offshore mix over the last four quarters. Margins will still remain at an elevated level but lower than Q3," Dalal said. "Internal efficiencies will be created from the new simpler structure," he added.

The company has guided for sequential growth of 1.5 percent to 3.5 percent in Q4.

Geography-wise, Europe grew at 8.6 percent QoQ, while the Americas region grew at 2.3 percent QoQ.

However, Delaporte said there could be some impact from the new Covid strain in Europe and that growth would be slower.

"There is an impact from Covid in Europe, but the momentum is good in the IT industry since the crisis has accelerated digital transformation," he said, though adding that, "Q4 will not have the same percentage of growth as in Q3 but it will be a solid growth as there is a strong pipeline."

Wipro's transition to new model complete; European growth to slow in Q4, says CEO

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