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India has emerged as the fastest growing IT hub in the world, its growth dominated by IT
software and services such as Custom Application Development and Maintenance
(CADM), System Integration, IT Consulting, Application Management, IS Outsourcing,
Infrastructure Management Services, Software testing, Service-oriented architecture and
Web services.
When it comes to IT services, the world is coming to India. With a CAGR of 28 per cent
during the last 5 years, the IT-ITES industry’s contribution to India’s GDP has risen from
1.2 per cent during 1999-2000 to 4.8 per cent in 2005-06.
Growth Curve
A survey by the National Association of Software and Services Companies (Nasscom)
shows why the Indian IT industry has become a case study of success:
• The Indian IT-ITES industry has recorded 33 per cent growth in exports, clocking
revenues of US$ 23.6 billion in FY 2005-06, as compared with export revenues of
US$ 17.7 billion in FY 2004-05.
• FY 2005-06 also saw the overall Indian IT-ITES industry (including domestic
market) growing by 31 per cent registering revenues of US$ 29.6 billion, up from
US$ 22.5 billion in 2004-05.
• Of the total IT-ITES exports in FY 2005-06, IT software and services grew by 33
per cent, registering revenues of US$ 13.3 billion
• The ITES-BPO segment clocked revenues of US$ 6.2 billion, recording a growth
of 37 per cent.
• Engineering services and product exports grew from US$ 3.14 billion in FY 04-
05 to US$ 4 billion in FY 05-06.
• Domestic market clocked revenues of US$ 6 billion in FY 04-05 from US$ 4.8
billion in FY 05-06.
Growth Drivers
According to Nasscom, the growth in India's services exports has been led by many
factors, including:
• A strong demand and increased traction for traditional services like ADM
• New services like EAI (Enterprise Application Integration) and package
implementation
• New areas like engineering services.
• Indian companies are enhancing their global service delivery capabilities through
a combination of green-field initiatives, cross-border M&A, partnerships and
alliances with local players.
• Global software product giants such as Microsoft, Oracle and SAP have
established their captive development centres in India.
• Leading MNC IT companies have operations in India, accounting for 16 percent
of their delivery capabilities in offshore locations, with India accounting for 70
percent of the total offshore employee base.
R&D
India is fast emerging as a research and development hub for some of the largest IT
companies in the world. The country is drawing 25 per cent of fresh global investments in
R&D centres. In many cases, such as Oracle, Intel, Adobe, STMicroelectronics (STM),
SAP and others, the India R&D centre is their largest facility outside the US or Europe.
Others, including IBM, Texas Instruments, Delphi, HP, Microsoft, Google and Cisco
have been tapping Indian talent for conducting cutting-edge research. According to
Daniel Dias, director, IBM India Research Lab, “India has a rich talent base. As a result,
a lot is going on in the Indian context which forms the basis for R&D work.”
Meanwhile, the companies that are already here are betting big on India. For instance:
Companies are lining up to invest in India, and a big chunk of their spending is directed
towards setting up R&D facilities. As per the data compiled by the Ministry of
Communications and IT, against 28 companies that outlined their investment plans, 17
have already infused capital. Six of these companies have committed over US$ 1 billion
each towards their India operations. This includes Cisco’s commitment of US$ 1.1
billion, SemIndia’s US$ 3 billion proposed investment, Intel’s US$ 1.25 billion,
Microsoft’s US$ 1.7 billion, IBM’s US$ 6 billion, and SAP Lab’s US$ 1 billion
investment.
Spread to Tier-II
IT or ITES, the action is shifting to India’s Tier-II cities, and the numbers speak for
themselves. In 2000-01, 68 per cent of total PC sales were in the top 4 cities Indian
metros. In 2005-06, that number is down to 33 per cent. Sales of PCs in smaller towns
grew 35 per cent, accounting for 54 per cent of the total market. While the sales growth
in the Top 4 cities was merely 10 per cent, in the Next 4 cities, it was a whopping 50 per
cent.
Users
The profile of Indian IT users is changing. The retail sector has adopted computers with a
passion. There has been a 127 per cent growth in retail outlets buying desktops, between
2000-01 and 2005-06. Factories have shown a growth of 46 per cent in the same period,
while office locations a growth of 24 per cent.
Road Ahead
Market Overview
Bolstered with such a significant, technically sound resource base, the software industry
has grown unimpeded. With a compounded annual growth rate of more than 50%
between 1992 and 2001, the Indian software sector has expanded almost twice as quickly
as the world-leading U.S. software industry did during the same period, although from a
smaller base.India’s software industry statistics illustrate the massive strides achieved by
this sector and the opportunities the future holds. According to NASSCOM’s estimates
for the fiscal year 2000-01, the country’s software industry is worth $8.26 billion, up
from $100 million ten years ago. A study conducted by renowned consultancy firm
McKinsey and Co., for NASSCOM, has proven why India is becoming the off-shore
software development out-sourcer’s destination of choice. According to the NASSCOM-
McKinsey study, the Indian software industry is expected to gross US$50 billion in
exports in 2008! This is based on an average growth rate of 35 percent per year. The
industry is well placed to achieve this target
Growth of IT Industry (in US $bn)
100
90
80
70
60 28%
US $ bn
50
40
30
20
10
0
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
Years
INTRODUCTION – WIPRO LTD.
The Global IT Services and Products segment provides IT services to customers in the
Americas, Europe, and Japan. The India and AsiaPac IT Services and Products segment
operates in the Indian IT market and offers IT products and services to the companies in
India, Asia-Pacific, and the Middle East region. Consumer Care and Lighting segment
engages in the manufacture and sale of consumer care and lighting products. The
consumer care products include soaps and toiletries, baby products, talcum powders, and
hydrogenerated cooking oils. The lighting products include light bulbs, fluorescent tubes,
and luminaries. In the 1970s and 1980s it began to expand and made forays into
computing. The Indian promoters hold more than 80 percent of the total share capital of
the company while the Indian public holds about 7 percent and institutional investors
hold about 6 percent.
Wipro's has clients across a spectrum of industries such as consumer electronics, finance,
Government, insurance, manufacturing, media & entertainment, mobile devices, Telecom
- equipment vendors and service providers, travel & transportation etc. To these clients
the company offers services such as application development, deployment &
maintenance, business intelligence, business consulting, CRM, data warehousing,
enterprise application services and security, industrial automation, space
communications, technology consulting, network management, testing services, system
design, Web services, wireless networks, software application development and
maintenance etc. The company also provides consultancy services like security
governance, e-governance etc.
Wipro Limited, through its subsidiaries, provides IT services worldwide. It offers
software solutions, IT consulting, business process outsourcing services, and research and
development services in the areas of hardware and software design. The company
operates in three segments:
Wipro Technologies:
Wipro Biomed
Wipro Biomed is the Biomedical business division of the Rs. 90 billion (USD 2 billion)
Wipro Limited. Wipro Biomed is India's only Biomedical, Health and Life Science
service provider offering integrated products, services and solutions focused on the
domestic market. Built on over 15 years of biomedical experience, we have more than
2000 customers in diagnostics, life sciences and medical systems.Wipro Biomed has
three businesses - Life Science Group, Diagnostics System Group and Medical Systems
Group. We have developed expertise in consulting, deploying,servicing and back up of
bio-medical equipments. We have strong partnerships with leading bio-medical
technology providers, wide geographic reach to support and service the equipments
backed by focus on quality and innovation.
Wipro GE Medical Systems is a joint venture between Wipro and General Electric
Company. A part of GE Medical Systems South Asia, it caters to customer and patient
needs with a commitment to uncompromising quality .Wipro GE is the market leader
with unmatched distribution and service reach in South Asia and is India’s largest
exporter of medical systems. Wipro GE pioneered the manufacture of Ultrasound and
Computed Tomography systems in India and is a supplier for all GE Medical Systems
products and services in South Asia.
Wipro and its success in handling outsourced information technology from U.S.
businesses is detailed in Thomas L. Friedman's best-selling novel "The World Is Flat".
Business Products
Wipro Technologies • IT Services
• Product Engineering Solutions
• Technology Infrastructure Services
• Business Process Outsourcing
• Consulting Services
Wipro Infotech Ltd. Notebooks
Desktops
Servers
Enterprise Products
Sun Servers
IBM Servers
Business Application and Development
Data Warehousing
Technology Integration
Wipro Consumer Care & Lightning Fast Moving Consumer Goods
Wipro Infrastructure Engineering Construction, Mining, Agriculture, Ports
Wipro GE Medical Systems Ltd. Medical systems
Wipro Biomed Specialty Products
Life Sciences
Diagnostic
Medical Systems
Managed Services
Time Line
A survey conducted by Businessweek has ranked Wipro 23 in the top 100 of Information
Technology. Coming off its strongest year since 2000, Wipro grew at 43% in 2004. The
company has branched out from offerings such as software development, R&D, and
applications maintenance to providing remote infrastructure management, financial
services, and applications and product testing. All that while maintaining its position as
the world’s largest third-party R&D provider. Wipro, which gets the majority of its
revenue from the U.S., is pushing further in Europe and expects to make some
acquisitions there this year. At home, the company’s back-office operation, Wipro BPO,
got a jolt when Chief Executive Raman Roy quit in early June to start another business.
The $150 million operation, mostly call-center work, will move into higher-end back-
office jobs such as insurance processes in order to achieve greater profitability and to
stem the high employee attrition to new foreign players.
Corporate Culture
• Beyond Work
There is a whole lot that Wiproites do beyond the job per se. We ensure that you get an
opportunity to ‘express’ and ‘enjoy’ yourself at the workplace!
We engage in activities with great energy, free spirit, and commitment to human values
and this has played a significant role in our success story so far. Active, unhindered
participation brings us closer to each other and to ourselves and making work fun and
meaningful.
There are numerous events, which are organized for our people throughout the year.
These span our people’s interests, the festivals that they celebrate and the fun we ensure
they have! Whether it is the Dandiya festivities, the World Environment Day celebrations
or a chat with Sri Sri Ravishankar on our employee portal Channel W- it is all happening
at Wipro!
Workplace Diversity
Wipro seeks to build a climate that welcomes, celebrates, and promotes respect for the
entire human race. In our commitment to diversity, we welcome people from all
backgrounds and seek to include knowledge and values from various cultures. The
concept and dimensions of diversity are advanced and incorporated into every aspect of
the organization. Dimensions of diversity include, but are not limited to, the following:
race, ethnicity, religious belief, sexual orientation, sex/gender, disability, socioeconomic
status, cultural orientation, national origin, and age. The implementation of the
commitment to Diversity rests with the organization as a whole. However, in addition to
this personal commitment and involvement, we have instituted a Diversity Committee to
implement effectively the philosophy and intent of the organization with respect to
diversity.
Wipro Leaders’ Qualities Survey, which started in 1992, is one of our oldest leadership
development initiatives. It has successfully contributed in our endeavor to nurture top
class business leaders in Wipro. We have 8 Wipro Leadership Qualities, which are based
on Wipro vision, values and business strategy. In order to identify and help leaders
develop these competencies we adopt a 360-degree survey process. This is an end-to-end
program, which starts with the obtaining of feedback from relevant respondents and ends
with each leader drawing up a Personal Development Plan (PDP) based on the feedback
received. The PDP is developed through “Winds of Change” which is a seven-step
program that helps in identifying strengths and improvement areas, and determining the
action steps.
Wipro has developed an approach for Life Cycle Stage Development Plan. Training and
development programs at various stages have been designed by mapping the
competencies to specific roles. Competencies specify the specific success behaviors at
every role.
• Entry-level program (ELP) - The program covers the junior management
employees with the objective of developing managerial qualities in the employee.
The target group is campus hires and lateral hires at junior level.
• New Leaders’ Program (NLP) - It is popularly known as NLP and aims at
developing potential people managers, who have taken such roles or are likely to
get into those roles in the near future.
• Wipro Leaders’ Program (WLP) - This program is for middle level leader with
people, process, business development and project management responsibilities.
These leaders are like the flag bearers of Wipro values and Wipro way of doing
business. They not only walk the value talk but they also have a responsibility of
assimilating new leaders with the Wipro culture.
• Business Leaders’ Program (BLP) - This is for senior leaders with business
responsibility. At this level, people are trained up for revenue generation; and
Profit & Loss responsibilities. The program covers commercial orientation, client
relationship development, and team building and performance management
responsibilities among other things.
• Strategic Leaders’ Program (SLP) - This program covers top management
employees. The focus is on Vision, Values, Strategy, Global Thinking and Acting,
Customer Focus and Building Star Performers. Wipro ties up with leading
business schools of international repute to conduct this program for Wipro
leaders.
The Leadership Development Framework
Managing Performance
Reward Philosophy
In the 1990s the BPO Business model was such that most of the U.S. and European
companies began to do much of their work in India. Then came another phase of
innovation in the BPO [business process operations] industry where the Indian companies
now account for almost 20% of India's exports. The third wave is where the companies
are setting up R&D centers in India. Morgan Stanley (MS) has set up a large center in
Mumbai where they are doing significant mathematical modeling in terms of equity
interpretation, risk assessment, risk management. Wipro's R&D business is over $550
million and represents nearly one-third of total revenues.
Azim Premji believes that making R&D free of accountability is the biggest mistake
committed. Eventually, R&D has to be linked to business profit. R&D has got to get
routed into deliverables. Not being diverse is another mistake. The composition of human
resources in R&D, especially male-female ratios, is important. The breakthrough
innovation of low-cost flexi-packs for consumer goods [such as shampoo] was really
pioneered in India by a team of women. Having a certain portfolio of projects is also very
important. Wipro has taken on six projects this year, which are being called as quantum
innovation, of significant size and risk, which will probably start showing results in 12 to
24 months. An Indian engineer from a good university costs between $8,000 and $9,000
a year compared with $45,000 in the U.S. or Europe. Indian salaries are rising about 12%
a year and American salaries are going up at 3% a year, so it would take more than 30
years for the two to converge.
The key issue is supply, not cost. Wipro is increasing the basket of talent available to
them by digging down into the second- and third- and fourth-level universities to retrain
engineers and make them into successful software engineers. They are lending faculty
and offering e-learning courses to students.The Company follows processes and sticks to
quality matrix.
For years companies have made profits almost solely on the basis that their labor has
been cheaper and more fluent in English than the rest of the world. With demand for
labor and thus its cost rising quickly in India, however, it is clear to most that this
formerly lucrative business model is quickly coming to an end. A number of larger
outsourcing firms are as a result attempting to move up the outsourcing food chain by
offering higher level services. One of the highest is research and development, which
requires innovative thinking and technology. If Indian companies are able to gain a
stronger foothold in this arena they will begin to complete the transition of creating an
economy not based on cheap labor alone but on competitive advantages that yield a
higher margin return. EE Times UK Reports:
The accompanying financial statements are prepared and presented under historical cost
convention on accrual basis of accounting, in accordance with Indian Generally Accepted
Accounting Principles (Indian GAAP) and accounting standards issued by the Institute of
Chartered Accountants of India (ICAI).
Principle of consolidation
The consolidated financial statements include the financial statements of Wipro and all its
subsidiaries, which are more than 50%owned or controlled.
The financial statements of the parent Company and its majority owned and controlled
subsidiaries have been combined on a line by line basis by adding together the book
values of all items of assets, liabilities, incomes and expenses after eliminating inter-
company balances/transactions and resulting unrealised gain/loss.
The consolidated financial statements are prepared using uniform accounting policies for
similar transactions and other events in similar circumstances.
Use of estimates
Revenue recognition
Revenue from software development services comprises revenue from time and material
and fixed-price contracts. Revenue from time and material contracts are recognised as
related services are performed. Revenue from fixed-price, fixed-time frame contracts is
recognized in accordance with the percentage of completion method. Revenues from
BPO services are derived from both time-based and unit-priced contracts. Revenue is
recognized as the related services are performed, in accordance with the specific terms of
the contract with the customers.
Maintenance revenue is considered on acceptance of the contract and is accrued over the
period of the contract.
Revenue from customer training, support and other services is recognised as the related
services are performed.
Provision for estimated losses, if any, on incomplete contracts are recorded in the period
in which such losses become probable based on the current contract estimates.
‘Unbilled revenues’ included in loans and advances represent cost and earnings in excess
of billings as at the balance sheet date.
‘Unearned revenues’ included in current liabilities represent billing in excess of revenue
recognised.
Revenue from sale of products is recognised, in accordance with the sales contract, on
dispatch from the factories/warehouse of theCompany.
Revenues from product sales are shown as net of excise duty, sales tax separately charged
and applicable discounts.
Agency commission is accrued when shipment of consignment is dispatched by the
principal. Profit on sale of investments is recorded upon transfer of title by the Company
and is determined as the difference between the sales
price and the then carrying value of the investment.
Interest is recognised using the time-proportion method, based on rates implicit in the
transaction.
Export incentives are accounted on accrual basis and include estimated realizable
values/benefits from special import licenses andadvance licenses.
Other income is recognised on accrual basis. Other income includes unrealised losses on
short-term investments.
Warranty cost
The Company accrues the estimated cost of warranties at the time when the revenue is
recognised. The accruals are based on the Company’s historical experience of material
usage and service delivery costs.
Fixed assets, intangible assets and work-in-progress
Fixed assets are stated at historical cost less accumulated depreciation.
Interest on borrowed money allocated to and utilised for fixed assets, pertaining to the
period up to the date of capitalization is capitalized. Assets acquired on direct finance
lease are capitalized at the gross value and interest thereon is charged to profit and loss
account.
Intangible assets are stated at the consideration paid for acquisition less accumulated
amortisation.
Advances paid towards the acquisition of fixed assets outstanding as of each balance
sheet date and the cost of fixed assets not ready for use before such date are disclosed
under capital work-in-progress.
Lease payments under operating lease are recognised as an expense in the profit and loss
account.
Goodwill
Goodwill arising on consolidation/acquisition of assets is not amortised. It is tested for
impairment on a periodic basis and written-off if found impaired.
Depreciation is provided on straight line method at rates not lower than rates specified in
Schedule XIV to the Companies Act, 1956.
Assets under capital lease are amortised over their estimated useful life or the lease term,
whichever is lower.
Intangible assets are amortised over their estimated useful life. Estimated useful life is
usually less than 10 years. For certain brands acquired by the Company, based on the
performance of various comparable brands in the market, the Company estimated the
useful life of those brands to be 20 to 25 years. Accordingly, such intangible assets are
being amortized over 20 to 25 years.
Investments
Long term investments (other than investments in affiliates) are stated at cost less
provision for diminution in the value of such investments. Diminution in value is
provided for where the management is of the opinion that the diminution is of other than
temporary nature. Short term investments are valued at lower of cost and net realizable
value. Investments in affiliates are accounted under the equity method.
Inventories
Finished goods are valued at cost or net realisable value, whichever is lower. Other
inventories are valued at cost less provision for obsolescence. Small value tools and
consumables are charged to consumption on purchase. Cost is determined using weighted
average method.
Gratuity - In accordance with applicable Indian laws, the Company provides for gratuity,
a defined benefit retirement plan (Gratuity Plan). The Gratuity Plan provides a lump sum
payment to vested employees, at retirement or termination of employment, an amount
based on the respective employee’s last drawn salary and the years of employment with
the Company. The Company contributes to the group gratuity scheme of Life Insurance
Corporation of India (LIC).
Superannuation - Apart from being covered under the Gratuity Plan described above, the
senior officers of the Company also participate in a defined contribution plan maintained
by the Company. This plan is administered by the LIC. The Company makes annual
contributions based on a specified percentage of each covered employee’s salary. The
Company has no further obligations under the plan beyond its annual contributions.
Provident fund
In addition to the above benefits, employees receive benefits from a provident fund, a
defined contribution plan. The employee and employer each make monthly contributions
to the plan equal to 12% of the covered employee’s salary. A portion of the contribution
is made to the provident fund trust managed by the Company, while the remainder of the
contribution is made to the Government’s provident fund. The Government mandates the
annual yield to be provided to the employees on their corpus. The Company has an
obligation to make good the shortfall, if any, between the yield on the investments of
trust and the yield mandated by the Government.
In respect of forward contracts assigned to the foreign currency assets as on the balance
sheet date, the proportionate premium/discount for the period upto the date of balance
sheet is recognised in the profit and loss account. The exchange difference measured by
the change in exchange rate between inception of forward contract and the date of
balance sheet is applied on the foreign currency amount of the forward contract and
recognised in the profit and loss
account.
The number of shares used in computing basic earnings per share is the weighted average
number of shares outstanding during the period. The number of shares used in computing
diluted earnings per share comprises the weighted average shares considered for deriving
basic earnings per share, and also the weighted average number of equity shares that
could have been issued on the conversion of all dilutive potential equity shares. The
dilution is determined using the treasury stock method. Dilutive potential equity shares
are deemed converted as of the beginning of the period, unless issued at a later date. The
number of shares and potentially dilutive equity shares are adjusted for any stock splits
and bonus shares issues.
Cash flows are reported using indirect method, whereby net profits before tax is adjusted
for the effects of transactions of a non-cash nature and any deferrals or accruals of past or
future cash receipts or payments. The cash flows from regular revenue generating,
investing and financing activities of the Company are segregated.
The Company assesses at each balance sheet date whether there is any indication that an
asset including goodwill may be impaired. If any such indication exists, the Company
estimates the recoverable amount of the asset. If such recoverable amount of the asset or
the recoverable amount of the cash generating unit to which the asset belongs to is less
than its carrying amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognised in the profit and loss account.
If at the balance sheet date there is an indication that if a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the
recoverable amount subject to a maximum of depreciated historical cost. In respect of
goodwill the impairment loss will be reversed only when it was caused by specific
external events and their effects have been reversed by subsequent external events.
Notes to Segment Report
The segment report of Wipro Limited and its consolidated subsidiaries and associates has
been prepared in accordance with the Accounting Standard 17 “Segment Reporting”
issued by The Institute of Chartered Accountants of India.
Segment revenue includes exchange differences which are reported in other income in the
financial statements.
c) PBIT for the quarter and year ended March 31, 2006 is after considering restricted
stock unit amortisation of Rs.
154 Million (2005 : Rs. 177 Million) & Rs. 633 Million (2005 : Rs. 346 Million)
respectively. PBIT of Global IT Services and Products for the quarter and year ended
March 31, 2006 is after considering restricted stock unit amortisation of Rs. 131 Million
(2005 : Rs. 159 Million) and Rs. 544 Million (2005 : Rs. 310 Million) respectively.
e) Capital employed of ‘Others’ includes cash and cash equivalents including liquid
mutual funds of Rs. 29,817 Million
(2005 : Rs. 22,784 Million).
f) The Company has four geographic segments : India, USA, Europe and Rest of the
World. Significant portion of the
segment assets are in India. Revenue from geographic segments based on domicile of the
customers is outlined below :
g) For the purpose of reporting, business segments are considered as primary segments
and geographic segments are considered as secondary segment.
h) Until June 30, 2005, the Company reported IT services and BPO services as an
integrated business segment - Global IT Services and Products. Effective July 2005, the
Company reorganized the management structure of Global IT Services and Products
Segment, the segment reporting format has been changed accordingly. Revenues,
operating profits and capital employed of Global IT Services business are now segregated
into IT Services and BPO services.
i) As at March 31, 2006, revenues, operating profits and capital employed (including
goodwill) of mPower and New Logic are reported separately under ‘Acquisitions’.
j) In August 2005, the Company issued bonus shares in the ratio of one additional equity
share for every equity share or ADS held.
Wipro focuses largely on "pull" marketing initiatives, targeting prospective clients while
they are searching for relevant IT information. Mostly this means Web-based marketing
with four key components:
Wipro's own Website is the fulcrum of the entire lead-generation program. The marketing
team has invested heavily in creating a wide range of material to showcase company
capabilities and successes, demonstrate thought leadership, and provide interactive
opportunities for prospective clients to sample Wipro's wares.
Wipro uses special offers and more than 400 case studies to get visitors to demonstrate
and register their specific interests. Comprehensive Web monitoring provides regular
analysis of what is and is not working and what role the Web is playing in lead
generation and relationship development.
As a critical link in the supply chain, distributors today need to be aware of the industry-
wide developments in the area of Global Data Synchronization, determine the business
case for its adoption and finally chart out a roadmap for implementation.
Data Analytics
Build a Data Analytics and Decision Support System to provide
A consolidated view of inventory
Measurement of inbound & outbound logistics metrics
Performance measure of promotional activities
MYTH 2: GDS only means basic item data synchronization with external trading
partners.
Internal synchronization of all IT systems is a necessary step before going for external
synchronization.
A large number of Wholesale distributors like Aramark, Sodexho Alliance and Ikon
office solutions figured in the list of Outstanding Outsourcing service providers released
by The International Association of Outsourcing Professionals (IAOP). The changing
revenue mix and widening portfolio of services is redefining the role of distributors like
never before.
Wholesale food distributors want to emerge as supply chain specialists managing all the
core functions like warehousing, fulfillment, in bound logistics and store design for their
customers. Food service distributors offer the broadest spectrum of services ranging from
facilities management for big institutional clients to recipe management for independent
restaurants. Electronic component distributors play a crucial role in the components
supply chain by complementing their line card with other value added services like
component selection, materials management, Vendor managed inventory, programming,
environmental compliance and design services. Similarly building material suppliers
offer project management and pre fabrication support to professional contractors thus
playing a key role in areas that were traditionally owned by the construction company.
The success of many distributors in offering these value added services can be attributed
to one or more of the following reasons:
Distributors have the opportunity to leverage traditional strengths in order fulfillment and
logistics management to offer a host of supply chain services. Customers are increasingly
willing to outsource non core activities to distributors. Distributors are uniquely
positioned to know supplier innovation and also understand customer demand providing
them with the ability to offer several demand generation, product installation and support
services.
Technology can play a key role in helping distributors to offer several other value added
services or scale up these services with greater confidence. Sometimes a distributors IT
investment for internal process efficiency/ data accuracy can also enable him to offer a
value added service. For example an electronic component distributor’s Product
Information management investments also empowers the company to offer component
information service as a fee based service to OEMs, contract manufacturers or Electronic
Manufacturing Service (EMS) providers. Technology investments can also empower a
distribution company to accomplish the following:
Distribution Framework
Wipro can commission a pilot implementation on a pre agreed scope involving a few
product categories, SKUs or operating companies and then engineer a full scale roll out.
Reverse logistics
Our reverse logistics solutions help seamless collaboration between retailers and suppliers
by providing complete visibility and thus increasing reverse logistics velocity and
consumer satisfaction. Wipro’s ‘ready to implement portal solution’ encompasses
efficient processes that aid in drastic reduction of inventory levels, minimize operational
costs in real-time through automated workflow and improved inventory and resource
utilization.
Wipro’s ability to provide business-focused solutions stems from the fact that Wipro’s
delivery organization is supported by "Centers of Excellence" comprising of a dedicated
team of domain experts and functional architects. This enables us to provide winning
business solutions for the unique problems faced by Wipro’s clients and help them
proactively respond to industry trends.
The CoE helps build Point Solutions and Frameworks with reusable plug and play
components that help in developing high performance solutions to enable faster
deployment and end-to-end verification & validation before final roll-out.
In Store
In Store CoE helps retail organizations stream line their store operations and benefit by
improve customer retention and reducing shrinkage. The CoE offers its domain expertise
in Point of Sale (POS) systems, Loss prevention, Global Data Synchronization and
Customer Loyalty management. The CoE possesses expertise to help customers make
build versus buy decisions and has developed frameworks and prototypes that streamline
and standardize implementation processes.
Supply Chain
The areas of expertise of the Merchandizing & Pricing CoE include technology, domain
and process consulting in merchandize planning, category management, price and
markdown management and retailer-supplier collaboration.
RFID
Business Analytics
The Business Analytics CoE is focused on leveraging cutting edge analytical tools
& technologies to facilitate better decision making across the complete value
chain of CPG organizations. Wipro develops business cases and data models,
leverages on in-house analytical expertise and builds best practices to measure
and improve performance.
The TPM CoE offers a comprehensive approach for trade promotion business
process assessment, gap identification and recommendations for improvement.
Wipro’s services span from Trade Promotion Technology solution evaluation,
enablement, deployment and help consumer goods companies reduce cost by
managing Trade Promotion Administration and Analytics.
The Manufacturing CoE has developed competence on ERP tools such as SAP, Oracle,
JDE, Lawson, etc, and concentrate on building seamless integration of ERP with critical
shop floor systems. As part of its offerings, it also provides Analytics and Reporting
solutions focusing on area such as Manufacturing Intelligence and Dashboards.
Diagrammatic Representation
www.wipro.com
www.wipro.in
www.nasscom.org
Annual Reports –Wipro Ltd & Infosys Ltd.
Banglore Tiger Steve Hamm, Tata Mc-Graw Hill Publication
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