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G.R. N. Somashekar

Shift in strategy: Mr Azim Premji (left), Chairman, Wipro; and Mr Girish S. Paranjpe, Joint CEO, IT Business, at a press conference in Bangalore on Wednesday. –

Our Bureau

Bangalore, Oct. 22 Wipro Ltd has said it is witnessing changes in the outsourcing deal structures in a slowing global economy as transformation component becomes more prominent, with customers looking for upfront cost savings besides efficiencies. Transformational deals are those that change the clients’ operational processes.

“With discretionary spending being cut, we believe that our growth will be fuelled by transformational deals,” said the Chairman, Mr Azim Premji. Wipro was moving from a ‘business as usual’ approach to more of ‘transformation approach’ which it expects would help its customers realise better cost and service optimisations in their times of need.

“We are not going to launch big transformational projects, but typically combine transformation and outsourcing,” said Mr Girish Paranjpe, Joint Chief Executive.

Wipro has been building a large part of transformation component into its deals to drive efficiency. “Transformation is becoming more front-ended in deals,” said Mr T. K. Kurien, head of Global Programs at Wipro. Through the Global Programs initiative, Wipro is chasing large outsourcing contracts that are transformational in nature and have a consulting element to it.

Wipro signed 28 new customers in the September quarter that included some transformational deals. Declining to comment on the specifics of the transformational wins, Mr Kurien said customers are looking at shorter paybacks and the onus has moved from outsourcing to cost benefit impacting bottom lines.

Revenues from such transformational projects that are bundled with consulting business account for about five per cent of IT services revenues. Wipro is focussing on non-linear growth model by developing capabilities in areas of intellectual property, service oriented architecture and software as a service offerings.

Mr Paranjpe said Europe is a growth area for the company, with the continental market now opening up. However, it would take 18 to 24 months for business to grow substantially in these geographies, he added.

More Stories on : Outlook | Software | Wipro Ltd

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