Introduction

Wipro, India’s fourth-largest IT services company, has unveiled a significant restructuring of its global business divisions aimed at addressing evolving customer demands. The focus will shift more towards emerging technologies, including Artificial Intelligence (AI), cloud computing, and digital transformation. These changes are set to take effect from April 1, and the company will operate under four primary divisions: Technology Services, Business Process Services, Consulting, and Engineering.

Wipro’s Vision for Transformation

Wipro’s CEO and Managing Director, Srini Pallia, stated that this transformation will allow the company to align more closely with customer requirements by offering AI-driven and consulting-led solutions. He emphasized that the restructuring would improve customer service and enable the delivery of more impactful digital transformations. This strategic shift aims to position Wipro as a leader in the emerging technology space, particularly in AI, cloud services, and digital innovation.

Wipro’s New Structure

The restructuring aims to streamline Wipro’s operations while focusing more intensely on the fast-evolving tech landscape.

  • Technology Services Line

This division will merge several key functions previously handled separately. It brings together Wipro FullStride Cloud, data and application platforms, digital operations, and cybersecurity under one unified umbrella. This division will be led by Nagendra Bandaru, who previously headed the company’s Enterprise Futuring division. The restructuring seeks to create a more integrated approach to technology services, emphasizing the importance of cloud and AI solutions to meet customer demands.

  • Leadership Changes

In addition to the restructuring, Wipro has seen notable leadership changes. Jo Debecker, who was leading the company’s cloud division, has resigned. Debecker had joined Wipro during the tenure of former CEO Thierry Delaporte and decided to explore external opportunities. This departure marks a shift in leadership as Wipro aims to strengthen its position in the competitive cloud and AI markets.

  • Business Process Services

This division, led by Jasjit Singh Kang, will concentrate on digital operations and business process transformation. Kang, who was previously Senior Vice President and Business Head of Digital Operations & Platforms at Wipro, will continue to steer the company’s efforts in delivering comprehensive process automation and digital transformation services.

  • Consulting Division

The consulting division will be led by Amit Kumar, focusing on strategic advisory and transformation services. This division aims to provide businesses with expert guidance as they navigate the complexities of digital transformation, leveraging Wipro’s consulting expertise to design and implement tailored business strategies.

  • Capco Leadership

Wipro’s major acquisition, Capco, which specializes in management and technology consulting, will continue to be led by Ann-Marie Rowland. The firm plays an essential role in Wipro’s financial services consulting offerings, and its leadership remains unchanged as it supports the company’s larger strategic objectives.

  • Engineering Division

The engineering division, which remains a critical part of Wipro’s portfolio, will continue to focus on providing engineering and research and development (R&D) services. Srikumar Rao will lead this division, ensuring that Wipro’s engineering capabilities continue to evolve with the growing demand for cutting-edge engineering solutions in various industries.

Strategic Focus on AI and Consulting-Led Solutions

CEO Srini Pallia further emphasized that this restructuring would sharpen Wipro’s ability to address client needs through consulting-led and AI-powered solutions. With this realignment, Wipro aims to deliver high-impact, tailored transformations that meet the specific needs of clients in a rapidly changing technological landscape. The company’s new organizational structure is designed to be more agile, responsive, and efficient in delivering these complex and transformative solutions.

Insights from Industry Experts

Phil Fersht, the CEO of HfS Research, commented on the shifting global business environment and the need for companies like Wipro to focus on data sovereignty and AI solutions to improve global processes. Fersht noted that the merging of cloud and AI strategies makes sense as these technologies are increasingly interconnected. He further pointed out that business process services have unique needs in terms of talent, pricing, and client retention, which would be better managed with a distinct focus. This strategic segmentation is expected to enhance Wipro’s leadership visibility and effectiveness in serving its customers.

Wipro’s Efforts to Reposition in a Competitive Market

Wipro’s restructuring marks another attempt to reposition itself within the highly competitive IT services industry. In the past decade, the company has faced challenges in matching the growth of its rivals, despite efforts from previous CEOs, including Abidali Neemuchwala and Thierry Delaporte. Despite a booming IT services market, Wipro has struggled with growth rates in the low single digits, while other industry players have been able to achieve higher growth. This restructuring is seen as a step toward closing this gap.

The company’s focus on AI, GenAI, and other emerging technologies is expected to help Wipro better serve its clients, especially those looking for ways to incorporate these innovations into their business operations to drive greater efficiency. As the IT services sector faces ongoing challenges, Wipro’s leadership is hoping that this restructuring will allow the company to become more responsive and attuned to the changing demands of its customers.

Financial Outlook and Future Challenges

For the fourth quarter of FY25, Wipro has provided a cautious revenue growth forecast of between -1% and +1%. This reflects the uncertainty currently facing the company amid a global business environment that is being shaped by geopolitical issues and economic instability. Despite these challenges, Wipro’s leadership remains optimistic that the restructuring will position the company to better navigate these turbulent times and provide more targeted, impactful solutions to its customers.

Conclusion

Wipro’s decision to restructure its global business lines is a critical move in its efforts to adapt to the evolving needs of the IT services industry. By focusing on AI, cloud computing, and digital transformation, the company hopes to stay competitive and deliver solutions that meet the needs of a rapidly changing market. While the company faces short-term challenges, its renewed organizational focus could position it for long-term success as it strives to better align itself with customer demands and emerging technological trends.

GMICapitals.com  RaysVeda.com  GetMyStartup.com  LawCanal.com  GetMyIndia.com  ZinCob.com Angeltors.com

Leave a Reply

Your email address will not be published. Required fields are marked *