Wipro goes for major rejig of biz model, organisation

Our Bureau Bengaluru | Updated on November 12, 2020

Thierry Delaporte, CEO and Managing Director, Wipro Limited

Wipro CEO Thierry Delaporte on Thursday announced significant changes in the software services company’s operating model, organisation structure and market focus.

In an internal communication, Delaporte pointed out that for long the company has been largely dependent on the US market, accounting for 58 per cent of revenues. This, he said, needs to change and, hence, going forward, the company will have a broad-based approach and the new operating model will drive growth from non-US markets.

“Besides ensuring adequate sector and domain focus in our go-to-market and execution, the new operating model will help drive growth in non-US markets,” he said in his note.

Talent magnet

As part of the rejig, Wipro's current complex delivery structure with multiple units will be replaced by a simple model that will yield economies of scale. Also, it will provide a fillip to the company's goal of becoming an employer of choice, laying out well-defined career paths and creating an environment to attract, nurture and retain talent, he wrote.

“Effective January 1, 2021, we 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),” he said.

The four Strategic Market Units will comprise 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 geographies, according to the note.

Explaining the rationale, Delaporte said: “I have no doubt that an operating model marked by fewer layers, empowered P&L owners, and clearly defined ownership of performance metrics, underpinned by a simpler and more customer-focussed delivery model, will help us meet our desired outcomes.”

People reshuffle

Delaporte said Srini Pallia will lead Americas 1, Angan Guha Americas 2, N Bala will oversee APMEA while the leader for Europe will be appointed in the coming weeks. Also, Rajan Kohli will lead iDEAS ((Integrated Digital, Engineering & Application Services) and Nagendra Bandaru head iCORE (Cloud Infrastructure, Digital Operations, Risk & Enterprise Cyber Security Services).

Published on November 12, 2020

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