Deprioritising focus on some markets and sectors, refocusing on Europe and Asia, and empowering global client-facing executives are some of the strategies Wipro will adopt under the newly-appointed chief executive officer.
Days after Wipro CEO Thierry Delaporte informed employees about an overhaul of the company's organisational structure, the French national detailed the strategy for analysts over a virtual call on Wednesday.
"We expect digital technologies to grow 15-20 percent in the next five years. Retail, BFSI, energy, manufacturing will contribute over 50 percent of incremental growth for the industry. Europe, Asia Pacific, and the Middle East will contribute 58 percent to incremental revenue over the next five years," Delaporte said while speaking about industry trends.
"In the last few years, our growth has been led by the US. Our new strategy is to drive growth in specific geographies. We will renew ambition for Europe, the Middle East, and Asia. We will deprioritize certain markets where our presence has been weak," Delaporte said.
"For example, in Switzerland, we will prioritise only some of the 23 sectors. We will only focus on life sciences, BFSI, heavy industries, and consumer," he added. In Africa, Wipro will focus on South Africa, the chief executive said.
Wipro chairman Rishad Premji also highlighted stronger market orientation and ‘obsession’ for growth during the call.
"You will see an obsession for growth, you will see a strong market orientation. Proximity to customers will be key. We were inward-looking and operational centric in the past. This will change," Premji said, adding that Delaporte was the "right leader to take Wipro forward".
Delaporte had sent out an e-mail to Wipro employees last week, underlining some dramatic restructuring of the company's business units, as well as bringing forth new roles of chief technology officer and chief growth officer.
Delaporte had said that effective January 1, 2021, the company will replace the current structure of seven strategic business units, service lines, and nine geographies with four strategic market units (SMUs) and two global business lines (GBLs).
The four strategic market units he identified are Americas 1, Americas 2, Europe, and Asia Pacific Middle East Africa (APMEA). While Americas 1 and Americas 2 are organised by sectors, Europe and APMEA are structured by countries.
Americas 1 will include the following sectors: healthcare & medical devices, consumer goods & life sciences, retail, transportation & services, Comm, media & info services, tech products & platforms, and LATAM. Americas 2 will include banking, Citibank, securities, IB & insurance, manufacturing, hi-tech, energy & utilities, and Canada.
Europe will consist of the following six countries/regions – UK and Ireland, Switzerland, Germany, Benelux, Nordics, and Southern Europe. APMEA will include six countries/regions as well - ANZ, India, Middle East, South East Asia, Japan, and Africa. The SMUs in Europe and APMEA will be responsible for all industry sectors in these regions.
The two global business lines: iDEAS (Integrated Digital, Engineering & Application Services) will include the following service lines - domain and consulting, applications & data, engineering, and R&D and Wipro Digital; the second GBL iCORE (Cloud Infrastructure, Digital Operations, Risk & Enterprise Cyber Security Services) will include CIS, DOP, and CRS service lines.
Delaporte also emphasised giving more flexibility and power to global account executives who work directly with clients, "Global account executives should comprise 25 percent of the top leadership at Wipro."
"Usually they are 5-6 levels below the CEO. We have removed several layers. Today a GAC will be at level 3 or 4," Delaporte added.
(Edited by : Jomy)