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    After best Q4 in 10 years, Wipro to roll out bonuses, promotions

    After best Q4 in 10 years, Wipro to roll out bonuses, promotions

    After best Q4 in 10 years, Wipro to roll out bonuses, promotions
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    By Mugdha Variyar   IST (Published)

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    The company is also set to roll out promotions across bands, offer skill-based bonuses and salary hikes for senior employees in June this year, CEO Thierry Delaporte said today.

    Information technology services major Wipro on Thursday saw its best fourth quarter results in ten years, and showed a strong deal win in the quarter helping the company guide for a sequential revenue growth of 2-4 percent in Q1 of FY22 (and a 11-13 percent growth in the quarter year-on-year).
    The company is also set to roll out promotions across bands, offer skill-based bonuses and salary hikes for senior employees in June this year, CEO Thierry Delaporte said today, adding that the company looks to be the 'leader' in the war for talent.
    "We recognise that we are competing for quality talent, and we are fully prepared to lead the war for good talent. We are investing in building talent at scale, we have implemented several interventions to retain diverse talent," Delaporte said.
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    Chief human resources officer at Wipro, Saurabh Govil told CNBC-TV18, "We gave salary hikes to 80 percent of employees in January 2021. We are doing skill-based differentiated bonuses as we speak. We are going to give salary hikes for senior employees starting June. We are doing promotions for all employees."
    Chief financial officer Jatin Dalal said the initiatives for employees will impact margins, but added that the investments have to be made, "We are at all-time high on utilisation in Q4. We have to invest in talent. Front-end capabilities investments are necessary."
    The company crossed gross hiring of 18,000 employees in the fourth quarter, and said robust hiring will continue in FY22.
    "We have robust hiring plans for freshers and lateral hiring. We have hired about 3,000 freshers in Q4, with a gross hiring of 18,000 people. We will be more aggressive on hiring plans given the demand," Govil said.
    On Growth
    The tech upcycle for the information technology industry is expected to continue for a few years, with Infosys and TCS guiding for a double digit growth for FY22.
    "11-13 percent revenue growth guidance for Q1 FY22 is an indication of the company's growth acceleration," CEO Delaporte told CNBC-TV18.
    Dalal said the guidance is based on robust demand and closure of bookings, and added that the companies recent deals with Metro AG and Telefonica have also been baked into the guidance.
    "The demand environment right now is robust, and our overall pipeline is healthy. In fact, our total contract value of order book in H2’21 grew by 33 percent YoY. That is the highest total TCV we have ever reported," Delaporte told reporters post the company's earnings. Wipro saw 12 large deal wins in Q4 worth $1.4 billion.
    On M&A
    Wipro is also on path to close its largest-ever acquisition of global technology consulting firm Capco, for which the company is shelling out $1.45 billion. The acquisition is set to complete by June 2021.
    "The size of Capco acquisition reflects boldness in BFSI sector," Delaporte said.
    "I have previously talked about how M&A is going to be an integral part of our business strategy. And you see that – in the last two quarters, we have announced acquisitions across several key markets, including the US, Europe, LATAM, Australia and India. These acquisitions have strengthened our local presence, and service offerings," he added.
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