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Company overview: Wipro Limited was incorporated in 1945 as Western India Vegetable Products
Limited under the Indian Companies Act, VII of 1913, which is now superseded by the Companies Act,
1956. It is deemed to be registered under the Companies Act, 1956, or the Companies Act. Wipro is a
global IT services company. It has been acknowledged as an offshore provider of technology services by
Gartner, Forrester and other research and advisory firms. Wipro provides a comprehensive range of IT
services, software solutions, IT consulting, business process outsourcing, or BPO, services and research
and development services in the areas of hardware and software design to companies worldwide. The
Company combines business knowledge and industry expertise of its domain specialists and the
technical knowledge and implementation skills of its delivery team in the development centers located
in India and around the world, to develop and integrate solutions which enables its clients to leverage IT
for achieving their business objectives. Wipro has three principal business segments: Global IT Services
and Products, India and AsiaPac IT Services and Products and Consumer Care and Lighting. Global IT
Services and Products segment provides IT services to customers in the Americas, Europe and Japan. The
range of its services includes IT consulting, custom application design, development, re-engineering and
maintenance, systems integration, package implementation, technology infrastructure outsourcing, BPO
services and research and development services in the areas of hardware and software design. The
Company's service offerings in BPO services include customer interaction services, finance and
accounting services and process improvement services for repetitive processes. Wipro's sales teams are
organized in three ways: by the vertical market segment of the client's business; by the geographic
region in which the client is located; and by the specific practice specialization or skill set that the client
requires. The market for IT services is highly competitive and rapidly changing. India and AsiaPac IT
Services and Products segment focuses primarily on meeting the IT products and services requirements
of companies in India, Asia-Pacific and the Middle East region. Its suite of services and products consists
of the following: Technology Products and Technology integration and management services and
outsourcing services. Wipro's offerings include: Availability Services, System Integration, Infrastructure
Management and Total Outsourcing and Technology Support Services. Consumer care and lighting
business segment focuses on niche profitable market segments and has historically generated cash tosupport the growth of its other business segments. Products in this segment includes: Soaps and
toiletries, Lighting and Hydrogenated cooking oils. The Company sells and markets its consumer care
products primarily through distribution network in India, which has access to 2 million retail outlets
throughout the country. The primary raw materials for many of its soap and hydrogenated oil products
are agricultural commodities, such as vegetable oils. Wipro relies on a combination of patent, copyright,
trademark and design laws, trade secrets, confidentiality procedures and contractual provisions to
protect its intellectual property. Regulation of its business by the Indian Government affects Company's
business in several ways. As of March 31, 2006, Wipro had over 53,700 employees. Wipro Technologies
is the global IT services business of Wipro Limited, a diversified company with the principal line of
business of IT and consumer products. Wipro Limited, which had $1.2 billion in revenue for FY04, also
has other interests in fluid power, lighting, medical equipment products, and financial services. Wipro
Technologies makes up around 67% of the company’s total revenue and is Wipro’s fastest-growing
business. Wipro Technologies is a part of Wipro Limited (NYSE:WIT) and is a leading global provider of
high-end IT solutions. The IT solutions provided include application development services to corporate
enterprises and product engineering services to technology companies. Wipro Technologies achieved
$617 million in revenue for the fiscal year ending March 31, 2003, and has over 18,500 employees. With
over 10000 consultants Wipro integrates people processes and technologies to deliver innovativesolutions that enable implementation of product development strategies efficiently and cost-effectively.
Wipro Technologies has emerged as the second-largest software exporter from India and has a high-
computer hardware, software and services. Often, telecommunications hardware, software and services
are also included in the definition. Given the convergence of this technology, including the Internet,
hand held devices, intelligent machines and other equipment, clear distinctions between “information
technology” and “telecommunications” are exceedingly difficult. The U.S. is the world leader in
information and communications technology (ICT) products and services, representing almost 40
percent of global spending. U.S. spending on ICT has increased almost 21 percent since 2000, to almost
$1.13 trillion in 2005. Between 2000 and 2005, ICT in the U.S. has achieved a compound annual growth
rate of 4 percent, compared to 6.3 percent for all global economies. This comparison is somewhat
misleading, however, given that many countries began the millennium with a very small installed base of
information technology. To put U.S. ICT spending into context, member nations of the G-8 experienced
CAGR of 4.5 percent for the same years. At $3,800, the U.S. is also one of the world’s largest per capita
ICT spending nations. The business community has responded the Information Technology Industry isthe fastest growing segment of the Indian economy. The Information Technology Sector has grown in
size from Rs. 5,450 crores in 1994-95 to about Rs. 64,200 crores in 2001-02 contributing 0.59% and
2.87% to G.D.P. growth respectively in the corresponding periods. The composition of Hardware and
Software exports is estimated as follows:
Description 1994-95 Rs. 5450 crore to 2001-02 Rs. 64200 crore
Software and Service Exports 28.3%and 57.4% respectively
Domestic Software and Services 17.9% 17.3%
Hardware peripherals and networking 48.4% 22.3%
Training 5.5% 2.9%
The country wise Indian Software Exports in 2000-01 was as follows:
Wipro Lighting –Vision: innovative range of cleanroom luminaries, clean & pure Wipro Lighting
manufactures and markets the Wipro brand of luminaires, lamps and accessories. Wipro Lighting caters
to both institutional and retail consumers, offering lighting solutions across various application areas
such as commercial lighting for modern work spaces, manufacturing and pharmaceutical companies,
designer petrol pumps and outdoor architecture.
Wipro consumer care Products - At WIPRO, the consumer care and lighting division, which precedes the
mainstay IT services, made news recently with its aggressive moves. It gobbled up Hindustan Lever's
dormant brand Glucovita in the glucose drinks segment and then upstaged Marico Industries to take up
the distribution of Chandrika soap. And there are no pauses, as Vineet Agrawal, President of Wipro's
Consumer Care and Lighting division, is betting on further acquisitions to help the business leapfrog tonew highs.
Wipro Technologies: Wipro Technologies is the No.1 provider of integrated business, technology
and process solutions on a global delivery platform.
Wipro Technologies is a global services provider delivering technology-driven business solutions that
meet the strategic objectives of our clients. Wipro has 40+ ‘Centers of Excellence’ that create solutionsaround specific needs of industries. Wipro delivers unmatched business value to customers through a
combination of process excellence, quality frameworks and service delivery innovation. Wipro is the
World's first CMMi Level 5 certified software services company and the first outside USA to receive the
IEEE Software Process Award
Strategic alliances: In its sixth acquisition in seven months, Wipro on Thursday said it has acquired
the Finland-based Saraware Oy in an all cash deal worth $32 million. Just a week ago, Wipro took over
Enabler, an EU-based retail service provider for $53 million.
Saraware, a 21-year-old company, is a leading provider of design and engineering services to telecom
companies. This acquisition adds expert domain competencies in the areas of radio networks and secure
mobile platforms. Saraware has nearly 200 specialists in these domains based out of Finland. Close to
Wipro gears up for mega global deals: Tech major Wipro seems to have enhanced significantly its
delivery capabilities through its series of acquisitions, building multiple domain expertise and readying a
bouquet of service offerings. The company says it is now ready to venture into deep waters to contest
for mega deals, in the range of $250 to $500 million, with top global players like IBM, Accenture and
EDS. Suresh Vasvani, president, Wipro Infotech, told The Times of India, ‘‘All the investments we have
done so far towards enhancing our service lines have started yielding results. This has given us immense
strategic edge. As a result, we currently have a pipeline of several $100 million deals and many mega
deals of international size. We started experiencing this trend in the domestic market a couple of
quarters ago by winning work orders from HDFC and Dena Bank worth $80 mn and $70 mn respectively.
Most of these mega deals are going to be in the areas of offshoring, infrastructure management and
business process outsourcing.” Wipro’s integrated services approach seems to have worked well for it. It
has brought all its services; consulting , infrastructure management, software applications, systemsintegration, data centre, BPO services and PC business under a single package. "Customers are looking at
companies that can provide integrated services. total outsourcing proposition strategy has been
effective in the last six quarters,". Wipro has strengthened its consulting business that has 250 vertical-
specific consultants who evaluate clients’ businesses, and suggest strategies for profitability and cost
While strengths and weaknesses of the Indian software sector have been an outcome of the past
decisions and initiatives, what lies ahead is well captured in the opportunities and threats. While India’s
share in the global technology marketplace continues to remain miniscule (at 1.8%), this presents an
opportunity for Indian software companies to increase their penetration into newer markets and newer
domains. Further, as more global companies are looking towards outsourcing their tasks to Indian
software companies with a view of becoming more cost competitive, the imperative for the former
(Indian software companies) lies in moving rapidly up the software value chain, into high-end domains
like telecom and banking services. In this initiative of moving up the value chain, Indian companies are
then likely to benefit from the scale advantages of the selling and marketing expenditure that have been
made in the past. Talking about probable threats to the fortunes of these Indian tech companies, the
most serious being the ‘successful’ replication of the Indian offshoring model by the global tech biggies
like EDS, IBM and Accenture. While, at present, most of the managements of Indian software companiesare of the belief that it would be rather difficult for these global giants to completely replicate the Indian
model owing to the changes that they would have to make in their revenue and cost structures, as and
when these MNCs are successful in the replication process, it would pose tough times for the Indian
companies. Finally, Indian software companies, in retaliation to increasing pressure due to global
economic slowdown, have reengineered their business models and widened their service base through
moving up the software value chain. Not only have these changes helped these companies in improving
their financial performance, even the stock markets have rewarded them as seen by the rally that these
stocks have been witnessing since their April 2003 lows. However, there have been several bouts of
volatility in between this rally and the rapid rise witnessed in the month of November raises some
serious questions regarding the sustainability of this rally.
Recent strategies: IT Services and Products segment accounted for 69% of the Company's revenue
during the fiscal year ended March 31, 2006 (fiscal 2006). Wipro provides its clients customized IT
solutions in the areas of enterprise IT services, technology infrastructure support services, and research
and development services. The Company provides a range of enterprise solutions primarily to Fortune
1000 and Global 500 companies. Wipro addresses the banking and financial services segment, the
manufacturing sector, and the retail, energy and utilities industries through its range of service offerings.
The Company's enterprise solutions division accounted for 63% of its IT Services and Products revenues
in fiscal 2006.
Wipro Technologies is expanding its portfolio of IT services by offering high value services such as IT
consulting and systems integration, bringing it into direct competition with global IT consulting giants
like Accenture.
Wipro's strategy revolves mainly around three points:
Service line expansion - Wipro will build a full port- folio of technology services. The company has
already added a number of new services such as package implementation, infrastructure outsourcing
(including remote network management), business process outsourcing and so on.
Quality leadership - Wipro has been well-known for embracing cutting-edge quality standards such as
six sigma. It has also begun six sigma consulting in an effort to become a global six sigma leader.
Investing in human capital - Wipro Technologies is investing a lot in training, not only on the technical
side but also on teaching its engineers how to be consultants. The company's employees, who several
years ago were basically "code cutters", have demonstrated the ability to take on large, complex
projects and run them out of India. Now, they must be able to develop a peer-like relationship with
customers, persuading customers instead of just accepting direction and doing a good job of execution.
The Company develops strategies and implements solutions for its clients to manage multiple sources of data for use in their decision-making processes. Wipro uses its expertise in package software to
architect, implement and maintain client-specific solutions. The Company also provides consulting
services. Wipro provides offshore testing services. The Company's service portfolio in testing covers the
entire gamut of user needs from product concept to deployment, across the stages of the
Strategy for Middle East: Middle East forms a critical component of our global strategy,' says Wipro.
Being a rapidly growing IT services market, Middle East forms a critical component of our global
strategy,' said Suresh Vaswani, President, Wipro during his visit to the region. 'Wipro is extremely
committed to building a strong customer base in the Middle East and will continue to provide value to
our customers through our global experience, understanding of various technology domains and
bringing customized solutions to our customers in the region.' Wipro Limited successfully implemented
Oracle 'database migration' and 'forms upgrade' using Oracle product tools for the core exchange
application at Al Ansari Exchange, UAE. Al Ansari Exchange had selected Wipro for this critical project to
facilitate user friendliness of the application and offer scalability to support the business growth of the
Exchange. Wipro Limited (NYSE:WIT), the Global IT Services Company, has further consolidated
leadership position and has extended its commitment in the region by implementing two projects in
Qatar. Wipro announced the successful completion of two projects in Qatar. The company hassuccessfully completed the Engineering Consultancy and IP Telephony testing project for Qatar
Petroleum for the proposed QP Complex and also implemented an Enterprise and Desktop management
suite for College of North Atlantic-Qatar campus.
"Wipro is delighted to have completed these leading edge projects across the region. Successful projects
like these go a long way in reiterating our commitment for delivering high levels of customer
satisfaction. We look forward to adding value to our customers' technology initiatives through our
expertise in global delivery and knowledge of technology domain. Wipro had also been selected by
Qatar Petroleum (QP) to provide Technology Consulting Services for their prestigious Ras Abu Aboud
Development Project as a consequence of QP's objective to explore the use of convergence for the new
QP complex. This 11-month project involved Wipro consultants working on designing, architecting and
testing the solution in Qatar Petroleum. The IT major implemented the project on time and within
schedule. Furthermore, the company also implemented HP Openview Enterprise Management suite for
College of North Atlantic in Doha, Qatar. The College as a part of a larger consortium had selected
Wipro. The IT major implemented HP Open View Service Desk and Altiris Client Management Suite - the
desktop management tool from Altiris. These tools will provide proactive management of the IT Services
in College of North Atlantic thereby enabling higher level of services to the students and faculty of the
college. Wipro started its operations in Middle East region in June 2001. In the subsequent years it
expanded its operations in the region to Kingdom of Saudi Arabia, Oman, Qatar, Bahrain and Kuwait.
Today it has built a strong customer base in Middle East. Some of its customers in the region include-
Doha Bank, Gulf Insurance Company, Sharjah Electricity and Water Authority, Dubai Metal and
Commodity Center, SPC and Dubai Municipality among others. Wipro delivers high end IT services and
consulting services to its client in the Middle East region through its two regional offices. One in Dubai
Internet City handling operations in UAE, Qatar, Oman and Kuwait, and the second at Al Khobar catering
to Saudi Arabia and Bahrain.
Strategy for west Asia: WIPRO sees a tremendous synergy in the Indo-Gulf markets and it aims to
further strengthen this relationship in the years to come, according to Mr Rajat Mathur, Vice-President,
International Operations. Speaking at the recently-concluded India-Gulf Partnership Summit in Dubai,
Mr Mathur said that West Asia and the Gulf were moving into higher value services as IT was
increasingly relied upon to drive business momentum. He said this region formed a critical part of
Wipro's global business strategy. "Wipro as a company is extremely committed to building a strong
customer base in the UAE and across the region. We are confident that our efforts in bringing best
practices will spur healthy growth of ICT industry in UAE,". In 2004-05 alone, Wipro had year-on-year
growth of 85 per cent in APAC/Middle East region. In Q2, 2005-06, the company had a growth of 28 per
cent in the Asia Pacific/Middle East region. In Q2 ending September 2005-06, Arab National Bank, Saudi
Arabia, selected Wipro as its partner for managing the data centre operations of the `Disaster Recovery
Centre'. In addition Manso Group, a diversified business group in KSA, having interests in
petrochemicals, steel, laminates and transportation business has chosen Wipro to Implement Enterprise
Application Platform - SAP Enterprise Version.
Wipro's strategy for future growth: Wipro, a leading India based provider of IT services, has drawn up
its strategy to become a world leader in the field. The company has stated in its latest annual report thatthe markets addressed by it are undergoing rapid change due to the pace of technology development
and change in business models. It believes that these trends provide significant growth opportunities.
Wipro expects to significantly grow its global IT services business and the percentage of its total
revenues and profits contributed by this business over the next few years. It hopes to achieve this