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FINAL TERM PROJECT REPORT

ON

INDUSTRY ANALYSIS OF THE INFORMATION TECHNOLOGY


SECTOR AND UNDERSTANDING THE COMPANY PROFILE OF
WIPRO TECHNOLOGIES LIMITED

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

MMS (2013-2015)

K.J. SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND


RESEARCH
INDUSTRY ANALYSIS OF THE INFORMATION TECHNOLOGY
SECTOR AND UNDERSTANDING THE COMPANY PROFILE OF
WIPRO TECHNOLOGIES LIMITED

SUBMITTED BY:
MR. DHRUV SANGHAVI
MMS, ROLL NO. 47

UNDER THE GUIDANCE OF :


PROF. NEHA GUPTA

K.J. SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND


RESEARCH

DECLARATION

I, MR. DHRUV SANGHAVI, hereby declare, to the best of my knowledge


and ability that my work on the Final Term Project title INDUSTRY
ANALYSIS OF THE INFORMATION TECHNOLOGY SECTOR AND
UNDERSTANDING THE COMPANY PROFILE OF WIPRO TECHNOLOGIES
LIMITED is a genuine research work undertaken by me. It has not been
published anywhere earlier.

MR. DHRUV SANGHAVI


ROLL NO. 47
DATE:

CERTIFICATE FROM PROJECT GUIDE

This is to certify that Mr. DHRUV SANGHAVI, a student of the MASTER OF


MANAGEMENT STUDIES (MMS) program at K J SOMAIYA INSTITUTE OF
MANAGEMENT STUDIES & RESEARCH, has worked under my guidance
and supervision. This final term project report title INDUSTRY ANALYSIS
OF THE INFORMATION TECGNOLOGY SECTOR AND UNDERSTANDING
THE COMPANY PROFILE OF WIPRO TECHNOLOGIES LIMITED has the
requisite standard and to the best of our knowledge has no part of it been
reproduced from any other project.

Prof. Neha Gupta


Professor of Marketing
KJ SIMSR, Mumbai

Acknowledgement

It has always been my sincere desire as a management student to get an


opportunity to express my views, skills, attitude and talent in which I am
proficient. A project is one such avenue through which a student who aspires
to be a future manager does something creative. This project has given me
the chance to get in touch with the practical aspects of management.
I am extremely grateful to the University of Mumbai for having prescribed
this project work to me as a part of the academic requirement in the Master
of Management Studies (MMS) course.
I wish to appreciate the Somaiya Management and K J Somaiya Institute of
Management Studies & Research for providing all the required facilities. I
would also like to thank the MMS Coordinator, Prof Sivakumar for all his
support and help.
I also wish to thank my Project Guide, Prof Neha Gupta, for guiding me
throughout the project.
I also appreciate all the support provided by the library staf and the
teaching and supporting staf of K. J. Somaiya Institute of Management
Studies & Research for providing all the necessary academic content and the
entire state of the art infrastructure and resources to enable the completion
of my project.

Table of Contents
Chapter 1 Introduction and industry analysis
Executive Summary.................................................................................................... 2
Introduction To IT Industry In India.............................................................................4
Market Overview........................................................................................................ 9
Porters Five Force Model.......................................................................................... 10
Chapter 2 - Company Profile
About Wipro Limited................................................................................................. 15
Time Line : Milestones.............................................................................................. 17
Wipros Mission and Vision:...................................................................................... 18
Group Companies of Wipro....................................................................................... 20
Business................................................................................................................... 23
Products.................................................................................................................... 23

Chapter 3 - Environment analysis


Environment analysis: External and Internal............................................................25

Chapter 4 - About Wipro Technologies


Wipro Technologies................................................................................................... 29
Brief History.............................................................................................................. 36
Wipro Markets Itself.................................................................................................. 38
Inbound & Outbound................................................................................................ 40
Wipro Service Offerings............................................................................................ 43
SWOT Analysis.......................................................................................................... 50

Chapter 5 - Suggestions & References


Suggestions.............................................................................................................. 54
Conclusion................................................................................................................ 55
References:............................................................................................................... 56

Executive Summary

Wipro is headquartered in Bangalore and has 28 development centers


across India, Europe and USA and also has 21 offices in USA,

Canada,

Finland, Taiwan, France and United Kingdom. Wipro has set a vision for itself
to become a US$ 5 bn company in the next couple of years. It aims to be top
10 IT companies in the world' top IT company in India, among top 10 most
favored employers in the world and to be among the top 5 brands in India.
Wipro is a global company with revenues of Rs 30922 mn for the year 2001.
The revenues for the company have been growing at an annual average rate
of 23% and PAT at an

annual average rate

of 50%. It employs

total

employees

which

11500

employees are in IT

business.

Wipro

follows

Sigma quality

out

of
Six

of

15000+

systems and is also a

SEI-CMM

level

company

principal

lines

of

with

businesses being information technology (IT) and consumer products. It also


has other businesses of fluid power, lighting, medical equipment products
and financial services. IT, which includes software services as well as
hardware products, makes up the largest chunk of business for Wipro. It
accounts

for

84% of total revenues of Wipro ltd. The Global IT services

contributes 57% of total revenues whereas Indian IT services contribute 27%


of total revenues. The IT business makes up 84% of the revenues of Wipro
Limited

and

around

93%

of

its

Wipro has a very good client base with over 50 Fortune 500companies
over 100 leading Indian corporates.

PBIDT.
and

In software Wipro has emerged as the second largest player and is growing
strongly and of toiletries has carved out a niche in the premium segment.
Wiproalso had an interest in the financial services industry through asubsidia
ry

Wipro

Finance.

This

has

proved

to

be

drain

company for the last three years and this year the company

on

the
has

divested a significant portion of this company and it is no longer a subsidiary


of Wipro. Wipro has a number of alliances with global leaders like Vignette,
ATG (Art Technology Group), Open Market, iPlanet for e-business; with Aether
systems, Agea corporation for m-commerce; with Neon, STC, Vitria, Mercator,
Seagull for Enterprise Application Integration; with SAP for ERP; with Siebel,
Clarify,

Pivotal

for

Customer Relationship

Computer Associates, Cisco, Nortel, Sun


Services etc.

for

Management;

with

Technology Infrastructure

Introduction To It Industry In India

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 industrys contribution to Indias
GDP has risen from 1.2 per cent during 1999-2000 to 4.8 per cent in 200506.

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, crossborder 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:

SAP Labs India is SAPs largest development facility outside Germany.

Adobe Systems has 900 people in its India R&D operations the
highest number outside the US.

Chipmaker Intel has 3,000 staff in India, the majority in its R&D unit.
Some of Intel India R&Ds recent contributions include complete design
of the Centrino mobile chip called Napa.

STM has built a state-of-the-art design campus in Greater Noida, which


once fully developed, will have 5,000 engineers. The company has
earmarked US$ 30 million in investments over the next two years.

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 Ciscos commitment of US$ 1.1 billion, SemIndias US$ 3 billion
proposed investment, Intels US$ 1.25 billion, Microsofts US$ 1.7 billion,
IBMs US$ 6 billion, and SAP Labs US$ 1 billion investment.

Hardware on a high road


According to the IT industrys annual review (2005-06) by Manufacturers
Association for Information Technology (MAIT), hardware sales in India are
tangible proof of the shifting patterns of growth in Indias IT industry.

Desktops: Desktop shipments have gone from 1.9 million units in 200001 to 4.6 million units in 2005-06, reflecting a CAGR of 25 per cent
between 1998 and 2005, and a growth of 27 per cent in 2004-05 alone.
MAIT estimates desktop shipments to grow to 5.6 million in 2006-07, at
an annual growth of 21 per cent.

Processors: In 2005-06, the Intel P-4 processor dominated the market,


with an 80 per cent share in all PCs sold during the year.

Notebooks and laptops: Between 2000-01 and 2005-06, the annual


sale of notebooks grew by 144 per cent, at a CAGR of 76 per cent.
While only 41,670 notebooks were sold in 2000-01, a whopping
431,834 notebooks were sold in 2005-06, the bulk going to businesses
and 13 per cent going into households.

Servers: From 64,090 servers in 2000-01, sales have gone up to 89,161


units in 2005-06. Annual sales increased by 81 per cent, with 48 per
cent of sales headed for Indias small towns, signalling a slow but sure
shift to Tier-II towns.

Printers: Laser is in, in the Indian computer printers market. Displaying


a CAGR of 52 per cent, laser printer sales have gone from 71,000 units
in 2000-01 to 325,000 in 2005-06. Inkjets continue to dominate the

market. Of the more than 1.5 million printers sold in 2005-06, nearly
half were Inkjets. Dot matrix printers are steady at a CAGR of 8 per
cent, while Inkjets are growing at 14 per cent CAGR.

UPS: Sales have shot from 398,195 units in 2000-01 to 1,208,413 units
in 2005-06, displaying an annual growth of 27 per cent and a CAGR of
34 per cent. More than half (55 per cent) of the UPS sold were headed
to Indias small cities.

Keyboards and Monitors: Keyboards have shown an annual growth of


26 per cent, and a CAGR of 28 per cent. Monitor sales, dominated by
the 15-inch monitors, have shown an annual growth of 27 per cent and
a CAGR of 28 per cent.

Internet: Indias internet penetration has gone from 350,000 in 200001 to 4,124,000 in 2005-06. One in four SEC-A households in India
have an active internet connection, while 48 per cent of all business
and 16 per cent of all homes have an active internet connection in the
top 4 metros. Users are moving away from dial-up lines and opting for
higher speeds and better connectivity of Cable and DSL links and ISDN
dedicated lines.

Spread to Tier-II

IT or ITES, the action is shifting to Indias 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

India is up to meet the global IT challenge. According to Nasscoms


projections, overall software and services will grow by 25-28 per cent,
clocking revenues of US$ 36-38 billion in FY07. IT-ITES exports are likely to
grow by 27-30 per cent in FY 06-07, posting revenues between US$ 29-31
billion.

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.Indias
software industry statistics illustrate the massive strides achieved by this
sector and the opportunities the future holds. According to NASSCOMs
estimates for the fiscal year 2000-01, the countrys 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-sourcers
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.

Porters Five Force Model

Threat of new entrant: High


Economies of scale: High
Though there is a low capital investment needed but due to
capabilities of resources pool and brand-building takes a long time to
achieve economies of scale. New entrants will have to survive till they
achieve the economies of scale. In a dynamic industry, where each and
every day a new software and technology coming up, its difficult for
new entrants to have such a dynamic infrastructure to accommodate
such developments at this speed.
Proprietary product diferences: Medium
It can bring the differences in individuals brand and enable them to
attract premium charge for their product. As in Indian IT industry, we
have enough number of big players like Wipro Technologies, Infosys,

TCS, Patni, CISCO, HCL, CTS etc. So even Wipro is a well-known


company its power to charge a premium price is not high, but medium.
Brand Identity: High
It plays a vital role in IT industry to get long-term deals. The global
presence of Wipro Technologies is an identity for it in domestic market.
Switching Cost: Low
As all the companies in the industry provides almost same kind of
solution in their specialization area, the clients dont have any
switching cost or very low switching cost and they can have the same
quality service from other players.
Capital Requirement: Low
So as to start an IT company in India its not difficult, but the difficulty
lies with the investment in peoples training and development and
brand building. As we are well known the fact of attrition rate in Indian
IT industry, the cost required is quite high.
Government Policies: Low
Government has been favoring so far with IT industry. So there will not
be intense problem other than some decisions to make the stability, to
prevent the industry form economic meltdown.
Bargaining Power of suppliers: Low
Here the suppliers are the consultants who provide the Human
Resource for the company, other suppliers like hardware parts,
software trained people etc.
Diferentiation of Inputs: High

Its a people oriented business and people as an input to the business


or to the process can make a huge difference.
Supplier Concentration: Medium
It is all about the talented and skilled people availability in India and
the centers, where the company operates. It is high in India especially
in urban and metro areas.
Impact of inputs on cost or diferentiation: High
Again people as an input can create a dramatic difference on cost as
well its impact on companys image. The surveys like the top ten
companies people wish to work, creates an impact on the talent pool
they have and that they are going to hire.
Threat of forward integration: Low
The forward integration is possible in this Industry, but requires skilled
people. For Example a company A provides an end to end solution like
from Data storage to software and Hardware solutions to a client B, but
after some time company B can decide itself to acquire a IT
department team instead of outsourcing it.
Bargaining power of buyers: Low
Buyer concentration: High As maximum customers of Wipro
technologies has been from US, UK and Europe, the sustainability of
them is very high. The they can rely on them to some extent.
Buyer Volume: High Wipro has its large client base and it is providing
integrated services. Each and every year it is adding to its customer
base. So the buyer volume is high. Buyer switching cost: Medium Even
though the switching cost is low in this, the contracts are revised

quarterly. Wipro always provides a high quality service to its clients. So


the satisfaction of customers is high.
Ability to integrate backward: Low
Most of the companies for integrating back ward, it needs investments.
Small start-up companies have less capacity to do that. At the same
time large companies can do it if they feel their suppliers bargaining
power goes up. So some of the MNCs are setting up their own
development center.
Substitute product: High
The number of substitute product or service is more easily available in
the industry for low cost. The quality and the reliability of those
products are sometimes creates problem.
Price / total purchase: High As the competition is getting tougher,
the price is an important factor. Even then in this industry, the
customization and the full solution model of products have the control
over price factor.
Product diference: Low
Basic products and services are more over same. There is hardly any
difference among big players.
Threat of substitutes: High
Relative price performance of substitutes: high
Here the substitutes are other major player offering the same services
at different price or small players offering the same with very low cost.
Switching cost: Low

Its low, because the services are of same kind with little brand
differentiation. So as to get the service from a cost effective company,
customers will not think much to switch.
Buyers propensity to substitute: Medium
For the same quality substitute buyers propensity to substitute is high.
At the same time for quality reduced service or not a complete solution
or for not having an end to end solution, clients show fewer
propensities to substitutes.
Threat of rivals: High
Industry growth: High
Attracts more player in the industry, as the investment needed for a
startup is comparatively less and more profitable than other industry.
Fixed cost / value added: High.
When an existing player is in industry, the firm can achieve the
economies of scale over a short period of time if we consider the
industry as of now. So it depends upon the economies of scale.
Capacity of Industry: High. As the industry is growing in a fast pace,
the client is also increasing with the need of developing their business
with technological advancements. So the opportunity for new entrant
is always there and the industry can have the capacity to give a place
to all incoming and existing players.
Product diference: Low.
Basic products and services are more over same. There is hardly any
difference among big players. So the product difference is very low.
Brand identity: Medium.

Every company has its own identity in


this industry in case of all factors like
customers preferences, employees
preferences to work in a particular
company, other companys
preferences to create a joint venture.
Diversity of Competitors: High.
There are a lot of competitors providing variety of integrated services
so as to retain their clients. There are global MNCs each year coming to
India and capture and split the market share of big players.
Exit barriers: High.
Once the companies enter into contracts, it would be very difficult to
terminate them. The reason it has is the huge money involved in it in
long term process. The contracts basically would be for more than 5 to
10 years. The contracts having more credibility services, which should
be provided by the company like data management service for a bank
includes all its data about customer accounts. So accompany which
signed for this contract cant stop in middle.

About Wipro Limited

Wipro is headquartered in Bangalore and has 28 development centers across


India, Europe and USA and also has 21 offices in USA, Canada, Finland,
Taiwan, France and United Kingdom. Wipro has set a vision for itself to

become a US$ 5 bn company in the next couple of years. It aims to be top 10


IT companies in the world top IT company in India, among top 10 most
favored employers in the world and to be among the top 5 brands in India.
Wipro is a global company with revenues of Rs 30922 MN for the year 2001.
The revenues for the company have been growing at an annual average rate
of 23% and PAT at an annual average rate of 50%. It employs total of 14000
employees out of which 11500 employees are in IT business. Wipro follows
Six Sigma quality systems and is also a SEI-CMM level 5 companies with
principal lines of businesses being information technology (IT) and consumer
products. It also has other businesses of fluid power, lighting, medical
equipment products and financial services. IT, which includes software
services as well as hardware products, makes up the largest chunk of
business for Wipro. It accounts for 84% of total revenues of Wipro ltd. the
Global IT services contributes 57% of total revenues whereas Indian IT
services contribute 27% of total revenues. The IT business makes up 84% of
the revenues of Wipro Limited and around 93% of its PBIDT.
Wipro has a very good client base with over 50 Fortune 500companies and
over 100 leading Indian corporates. In software Wipro is headquartered in
Bangalore and has 28 development centers across India, Europe and USA
and also has 21 offices in USA, Canada, Finland, Taiwan, France and United
Kingdom. Wipro has set a vision for itself to become a US$ 5 bn company in
the next couple of years. It aims to be top 10 IT companies in the world top
IT company in India, among top 10 most favored employers in the world and
to be among the top 5 brands in India. Wipro is a global company with
revenues of Rs 30922MN for the year 2001. The revenues for the company
have been growing at an annual average rate of23% and PAT at an annual
average rate of 50%.
It employs total of 15000+ employees out of which 11500employees are in
IT business.

Wipro follows Six Sigma quality systems and is also a SEI-CMM level 5
companies with principal lines of businesses being information technology
(IT) and consumer products. It also has other businesses of fluid power,
lighting, medical equipment products and financial services. IT, which
includes software services as well as hardware products, makes up the
largest chunk of business for Wipro. It accounts for 84% of total revenues of
Wipro ltd. the Global IT services contributes 57% of total revenues whereas
Indian IT services contribute 27% of total revenues. The IT business makes
up 84% of the revenues of Wipro Limited and around 93% of its PBIDT. Has
emerged as the second largest player and is growing strongly and of
toiletries has carved out a niche in the premium segment. Wipro also had an
interest in the financial services industry through a subsidiary- Wipro
Finance. This has proved to be a drain on the company for the last three
years and this year the company has divested a significant portion of this
company and it is no longer a subsidiary of Wipro. Wipro has a number of
alliances with global leaders like Vignette, ATG (Art Technology Group), Open
Market, iPlanet for e-business; with Anther systems, Age corporation for mcommerce; with Neon, STC, Vitria, Mercator, Seagull for Enterprise
Application Integration; with SAP for ERP; with Siebel, Clarify, Pivotal for
Customer Relationship Management; with Computer Associates, Cisco,
Nortel, Sun for Technology Infrastructure Services etc.

Time Line : Milestones

1945: Incorporation of Western India Products Limited.

1947: An oil mill and hydrogenated cooking medium plant set up.

1966: Azim Premji takes over the leadership of Wipro at the age of 21.

1975: Wipro Fluid Power set up to manufacture hydraulic and


pneumatic cylinders.

1977: Name of the company changed to Wipro Products Limited.

1980: Information technology services for domestic market started.

1981: Hardware company is launched.

1982: Name of the company changed to Wipro Limited.

1984: Software products subsidiary - Wipro Systems Ltd. - established.

1985: Toilet soaps manufacture begins.

1988: Wipro BioMed, a new business unit to market and service bioanalytical and diagnostic instruments, is launched.

1989: Joint venture with GE of US for medical systems, Wipro GE


Medical Systems Ltd.

1990: Product software business discontinued; software services begin.

1992: Lighting business and finance arm is established.

1994: Merger of subsidiaries Wipro Technologies Ltd. and Wipro


Systems Ltd. with Wipro Ltd.

1998: Relaunch of Wipro identity with Rainbow Flower and positioning


statement, "Applying Thought".

1999: Software business reaches SEI certification.

1999: Wipro Net set up by restructuring Wipro Ltd's communication


services business to address the Internet market.

2000: Listing of Wipro Ltd's ADRs on New York Stock Exchange.

2000: Six Sigma initiative begun.

2001: Wipro becomes world's first PCMM Level 5 company.

2002: Wipro becomes CMMi. Acquires Raman Roy 's Spectramind for
US$ 175 million to get into BPO space

2005: Wipro becomes a 4 billion $ company.

2006: Wipro becomes the world's largest R&D service provider.

2006: Wipro sees net profit for the three months to September rise
48% to $152m (81m)

Wipros Mission and Vision:

Having already achieved the pinnacles of process and quality credentials


(through ISO 9000, SEI CMM,PCMM and Six Sigma), Wipros Vision is focused
on attaining leadership in the areas of business, customer and people.
Business Leadership: Among the top 10 Information Technology Services
companies globally and the No.1 Information Technology company in India.
Customer Leadership : The No.1 choice of customers through innovative
solutions and Six Sigma processes.

People Leadership: Among the top 10 most preferred employers globally by


creating an environment of empowerment, intellectual challenge and wealth
sharing.
Brand Leadership: Wipro to be among the 5 most admired brand in India.
Wipro enters into various industries for various businesses in a constant
innovative manner. This shows the firms strong approach of tapping new
market with the spirit of achievement.

Group Companies of Wipro

Accounting, Procurement, HR Services, Loyalty Services and


Knowledge Services. In 2002, Wipro acquiring Spectramind and
became one of the largest BPO service players. It currently has 22,000
employees as of December 2011.
Wipro GE Medical Systems:
Wipro GE Medical Systems is a joint venture between Wipro and
General Electric Company. As a part of GE Medical Systems South Asia,
it caters to customer and patient needs with a commitment to
uncompromising quality. Wipro GE is Indias largest exporter of medical
systems, with unmatched distribution and service reach in South Asia.
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 Technologies:
Wipro Technologies is a global services provider delivering technologydriven business solutions. Wipro is the No.1 provider of integrated
business, technology and process solutions on a global delivery
platform. Azim Premji is the Chairman of Wipro Technologies. He took
over the mantle of leadership of Wipro at the age of 21 in 1966. Under
his leadership, the fledgling US$ 2 million hydrogenated cooking fat
company has grown to a US$1.76 billion IT Services organization
serving customers across the globe
Wipro Consumer Care and Lighting:

Wipro Consumer Care and Lighting, a business unit of Wipro Limited,


has a profitable presence in the branded retail market of toilet soaps,
hair care soaps, baby care products and lighting products. It is also a
leader in institutional lighting in specified segments like software,
pharma and retail. It manufactures and markets the Wipro brand of
luminaries. Wipro Lighting offers 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 Infrastructure Engineering:
Wipro Infrastructure engineering was Wipro Limiteds first
diversification in 1975, which addressed the hydraulic equipment
requirements of mobile original equipment manufacturers in India.
Over the past 25 years, the Wipro Infrastructure Engineering business
unit has become a leader in the Hydraulic Cylinders and Truck Tipping
Systems markets in India, and intends growing its business to serve
the global manufacturing requirements of Hydraulic Cylinders and
Truck Tippers. It has emerged as the leader in the hydraulic cylinders
and truck tipping systems market in India.

Worlds largest independent, first Indian IT Service Provider to be


awarded Gold-Level Status in Microsofts Windows Embedded Partner
Program.

Wipro is presently ranked among the top 100 Technology companies in


the world. It has 120,000 employees, serves 592 clients, and has 46
development centers across globe.
Alliances: Wipro works with alliance partners to offer compelling business
propositions for the customers. Wipros alignment with the technology

leaders across various industries enables them to provide our customers


with world-class solutions that transform their business processes.
Key benefits: Creating competitive advantage by understanding the
industry and bringing the right combination of products and services
expertise to create a solution
Reduce IT costs by developing and implementing cost-effective solutions
at scale
End-to-end solution thereby minimizing risk
Seamless solutions for the client
Reduced IT risks
Achievements of Wipro Ltd:

Awarded with DL Shah National Quality Award.

BPO Excellence Award for Outstanding Work in Utilities Company in

UK.

The Outsourcing Excellence Award for Best IT Enablement in BPO.

SAP ACE Award for Customer Excellence.


National Telecom Award for Excellence in Infrastructure for Application
Services.
NASSCOM Corporate Award for Excellence in Diversity and Inclusion.
IT Outsourcing Project of the Year 2011 award for innovation and
achievement in outsourcing industry.
ASTD BEST award for training and development.

Ranked 23rd in the Top Companies for Leaders global list announced by
Aon Hewitt, The RBL Group and Fortune.
First company in the world to be certified in BS 7799 (2002) security
standards.
Only Indian company to be ranked among the Top 10 Global Outsourcing
Providers in the IAOP-Fortune Global 100 listings.
Among the top 3 offshore BPO service providers in the world.
The first to get BS15000 certification for its Global Command Centre.
Worlds 1st IT Services Company to use Six Sigma
Worlds 1st PCMM Level-5 software company

Business
Wipro Technologies

Products

IT Services

Product Engineering
Solutions

Technology Infrastructure
Services

Business Process
Outsourcing

Wipro Infotech Ltd.

Consulting Services
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

Environment analysis: External

Demographic Forces: Demographic forces are outcomes of changes in the


characteristics of a population, such as age, gender, ethnic, origin, race,
sexual orientation and social classes. Wipro in its milestone journey,
understood very well about the changing pattern of people, where it
operates its businesses.
Women Employees in Wipro Technologies:
After India got freedom, the importance of womens right and education
gained more importance. By around 1980s womens literacy rate in India is
25.6%, and then it started moving upward in each year. Now it reached

65.4%, where the rate of increase is higher than male literacy increase rate.
Even then most companies may be more gender sensitive now. But the IT
sector, where nearly 30% of the entire workforce is comprised of women, is
way ahead of most other industries when it comes to gender neutrality and
sensitivity. Wipro is one such company among those. The transition in the
environment due to IT industry in past two decades made a significant
impact on womens employment. Wipro gives equal employment opportunity
for women. It recently decided to increase its female work force rate from
13%to 20%. Thats how it enriches and keeps its employees in a competitive
high attrition rated industry like IT, ITES, BPO and health care. Three years
ago, it conducted a study amongst its women employees, and came up with
a Women of Wipro policy -- a policy that is designed to cater the needs of
women. As part of that initiative, it has introduced several programs,
including a unique nine-month mentoring program where senior managers
mentor high performing women employees across levels, both on
professional and personal fronts.
Economic Environment:
In the economic front, when Wipro ltd had been taken over by Mr. Azim
Premji, he analyzed the economic environment and found the opportunities
for the expansion and diversification in various industries. Even when it was
under his fathers administration he took that into a consumer market
segment, where he had seen an opportunity to tap the consumer goods
market, which was a main concern of government to cater to the needs of
domestic demands first. The next opportunity seen by them was the boom of
infrastructure industry in mid 1970s. The growth of country has its one of
the bases as infrastructure development which should be in both private and
government sectors. They foresee it in a better way and decided to enter in
to a market where they could achieve the top level, which was engineering
and manufacturing of hydraulic and pneumatic cylinders. This provides

solutions by hydraulic and pneumatic cylinders, truck tipping systems for the
trucks and heavy industry machines and for army tanks and vehicles.
Wipro Technologies From 1970s to 1990s:
At that time Indian economy was state-controlled and the state remained
hostile to the software industry through the 1970s. Import tariffs were high
and software was not considered as a separate industry, so that exporters
were considered as ineligible for bank loans. Government policy towards
changed in 1984.Package of reduced import tariffs on hardware and
software. This recognition of software exports asa "de-licensed industry", i.e.,
henceforth eligible for bank finance. This encouraged our Indian domestic
players like Infosys, Wipro and TCS to concentrate in software industry very
actively. The trend of growth rate of Indias economy demonstrates an
upward trend. During the period of 1960 to 1980 the economy saw a growth
rate of 3.5% due to the roles of major industries in India GDP. In the years
from1980 to 1990 the growth rate showed a marked improvement of 5.4%. It
was slightly lower in the period from 1990 to 2000 which was at 4.4%, and
the reason behind this is those companies were already into the industry,
quickly utilized the opportunity, others were struggling to come up. Then the
start of 21stcentury till 2008 the economic conditions were favorable for this
industry.
The contribution towards countrys GDP was increasing year on year from
2000 to 2008. Then the world economic slowdown hit software industry in
India and melted so many companies in the market. The phase 2000 to 2008
saw a huge improvement and the growth rate of GDP were marked at 6.4%.
The IT/ITES industrys contribution to the countrys GDP has been steadily
increasing from a share of 1.2percent in 1997-1998 to 5.2 percent in 20062007, according to NASSCOM-Deloitte study. The Indian Software Industry
has grown from a mere US $ 150 million in 1991-92 to a staggering US $ 5.7
billion in1999-2000. No other Indian industry has performed so well against

the global competition. According to statistics, Indias software exports


reached total revenues of Rs 46100 crores. The total share of Indias exports
in the global market rose from 4.9 per cent in 1997 to 20.4 percent in 200203. The Indian software industry was considered to be the biggest employer
expected four million jobs in 2008. It accounted for seven percent of Indias
total GDP in the year 2008.

Today, the Software Industry in India exports software and services to nearly
95 countries around the world. The share of North America (U.S. & Canada)
in Indias software exports is about 61 per cent. In1999-2000, more than one
third of Fortune 500 companies outsourced their software requirements to
India. The software industry being the main component of the IT Industry in
India has also helped the IT sector in India to grow at a good pace. As per the
proceedings taking place in the software industry the future of the India
Software Industry looks promising.

Political and Legal Environment:


From 1970s to 1990s:
The IT industry started growing under unfavorable conditions initially.
Domestic markets were not favorable enough and the government policies
toward private enterprise were completely unfavorable. The industry was
begun by Bombay-based conglomerates which entered the business by
supplying programmers to global IT firms located overseas. At that time
Indian economy was state-controlled and the state remained hostile to the
software industry through the 1970s. Import tariffs were high (135% on
hardware and 100% on software) and software was not considered as a
separate "industry, so that exporters were considered as ineligible for bank
loans. Government policy towards IT changed in 1984. The Government has

also played a vital role in the development of the India Software Industry. In
1986, the Indian government announced a new software policy which was
designed to serve as a catalyst for the software industry. This was followed in
1988 with the World Market Policy and the establishment of the Software
Technology Parks of India (STP) scheme. Package of reduced import tariffs on
hardware and software (reduced to 60%). This recognition of software
exports as a "de-licensed industry", i.e., henceforth eligible for bank finance.
This encouraged our Indian domestic players like Infosys , Wipro and TCS to
concentrate in software industry very actively.
The trend of growth rate of Indias economy demonstrates an upward trend.
In addition, to attract foreign direct investment, the Indian Government
permitted foreign equity of up to 100 percent and duty free import on all
inputs and products.
After 1990s:
When the liberalization took place, Indias Information technology had a huge
advantage over it. Then onwards the boom started and the big players like
Wipro, Infosys, TCS started being stable enough to survive in the industry.
Liberalization gave them the opportunity to go global and to get their
investment to expand their businesses in various sub sectors like BPO and
KPO and consulting. Those companies were already into the industry, quickly
utilized the opportunity, others were struggling to come up. Then the start of
21st century till 2008 the economic condition were really good for this
industry

Wipro Technologies

The time line shows the consistent innovativeness of Wipro ltd throughout its
journey. Wipro ltd was very quick to react for governmental or legal
environmental changes. Those immediate responses helped it to build and
grow its businesses to extreme level in several industries, in which they
achieved and continuing in top players list.
One of the best examples for this quick move or reaction towards legal or
governmental environmental changes was to diversify in to IT hardware and
later IT software industries. In 1977, IBM was in Development of the free
Linux kernel is started by Linus Torvalds in Finland. These innovations are all
related to software and hardware industry. Big players were able to change
themselves according to the technical changes happened. They started
providing their goods in a competitive price, so as to capture the market. In
order to compete with the big players with the price and quality, everyone in
the industry needs to change their technology. So the need of software and 7
Microsoft Windows operating systems become virtually ubiquitous on IBM
PCs.
The Year 2000 problem (commonly known as Y2K), the computer glitch
disaster expected to happen on January 1, 2000
Instant Messaging and the buddy list becomes popular. AIM and ICQ are
two early protocols.
E-mail becomes popular; as a result Microsoft acquires the popular
Hotmail.com webmail service.

Businesses start to build E-commerce websites; E-commerce-only


companies such as Amazon.com, eBay, AOL, and Yahoo! grow rapidly.
The Java programming language is developed by Sun Microsystems.
The development of Web browsers such as Netscape Navigator and
Internet Explorer makes surfing the World Wide Web easier and more user
friendly.
Microsoft introduces Windows 95 and later Windows 98 to the market,
which gain immediate popularity.
The World Wide Web and HTML are created by Tim Berners-Lee and
eventually displace the Gopher protocol.
A situation, which it needed to leave from India, because of government
regulatory rules, Wipro decided to enter Information Technology sector, by
serving its domestic clients in IT Industry. They responded quickly and
diversified into Information Technology Industry in 1979. Wipro began
developing its own computers. In 1981 the launched the Hardware company
which provided the computer peripherals. This was the first in a string of
products that would make Wipro one of Indias first computer makers.
Simultaneously in 1980 Wipro moved into software development and started
developing customized software packages for their hardware customers.
Technical Environment:
Technical environment is an important entity in this industry. The
technological innovations drove the companies to get various dimensions
across the industries. After 1990 in India all the industries started realizing
the importance of technology support to their businesses to improve their
efficiency to survive in the competitive market. The competition mostly
based on price and quality of the products. To handle the price sensitive
customers the companies need to be cost effective in their operations and to

be innovative enough to keep their customers happy in order to retain them.


In all the industries new inventions started coming and the variety of
products increased. The import of goods has been increased. Some
technologies invented and improved during the 1990s:Software
Interactive videodisk, to get in immediate contact with potential buyers
Wireless data communication and portable computers, allowing field
personnel to work office independent
Decision-support tools, allowing decision-making to be a part of
everybodys job
Telecommunication networks, allowing organizations to be centralized and
decentralized at the same time
Expert systems, allowing generalists to perform specialist tasks
Shared databases, making information available at many places
Technological advancement favored positively to the IT industry. In the
early 1990s concept like Business Process Re-engineering (BPR) and in later
1990s and 2000 the Enterprise Resource Planning (ERP) was new to the
industry.
Business Process Re-engineering (BPR):
Business process re-engineering (BPR) began as a private sector technique
to help organizations fundamentally rethink how they do their work in order
to dramatically improve customer service, cut operational costs, and become
world-class competitors. A key stimulus for re-engineering has been the
continuing development and deployment of sophisticated information
systems and networks. Leading organizations are becoming bolder in using
this technology to support innovative business processes, rather than

refining current ways of doing work Reengineering guidance and relationship


of Mission and Work Processes to Information Technology. Business Process
Re-engineering (BPR) is basically the fundamental re-thinking and radical redesign, made to an organizations existing resources. It is more than just
business improvising. It is an approach for redesigning the way work is done
to better support the organizations mission and reduce costs. Reengineering
starts with a high-level assessment of the organizations mission, strategic
goals, and customer needs.

The role of information technology:


Information technology (IT) has historically played an important role in the
reengineering concept. It is considered by some as a major enabler for new
forms of working and collaborating within an organization and across
organizational border. Early BPR literature identified several so called
disruptive technologies that were supposed to challenge traditional wisdom
about how work should be performed.
High performance computing, allowing on-the-fly planning and re-visioning in
the mid1990s, especially workflow management systems were considered as
a significant contributor to improved process efficiency. Also ERP (Enterprise
Resource Planning) vendors, such as SAP, JD Edwards, Oracle, PeopleSoft,
positioned their solutions as vehicles for business process redesign and
improvement.
Enterprise Resource Planning (ERP):
ERP is an organizations management system which uses a software
application to incorporate all facets of the business, and automate and
facilitate the flow of data between critical back-office functions, which may
include financing, distribution, accounting, inventory management, sales,

marketing, planning, human resources, manufacturing, and other operating


units. ERP software, in turn, is designed to improve both external customer
relationships and internal collaborations by automating tasks and activities
that streamline work processes, shorten business process cycles, and
increase user productivity. A method for standardized processing, an ERP
software application can both store and recall information when it is required
in a real-time environment. Companies often seek out ERP software systems
to pin point and mend inefficiencies in a business process or when a number
of complex issues exist in the business environment. ERP software systems
are also implemented to enhance operational efficiencies, achieve financial
goals, manage and streamline the companys operational processes, replace
an existing ERP software system that is out of date or unable to handle a
companys daily activities; or improve information management through
better data accessibility, decreased data duplication and optimal forecasting
features. Many business owners see ERP software systems to be critical to
their business functions, as they allow companies to achieve absolute
business process automation. While most companies use countless
processes, activities and systems to run operations, workflows and
procedures can go awry when it comes to todays highly competitive
marketplace, thus automatic identification and tracking, allowing things to
tell where they are, instead of requiring to be found hindering productivity,
growth and profitability. As a result, the implementation of an ERP software
application can result in increased productivity, reduced operating expenses,
improved data flow, and optimal performance management. ERP software
comes in many forms, including supply chain management, manufacturing,
distribution, warehouse management, retail management, and point-of-sale
software. So when these changes happened, Wipro ltd provided all kinds of
software and did re- engineering processes. Then they diversified to
consulting sector. In 2002 Wipro ltd started its Wipro consulting Services and
earned Rs 2 crores in the first quarter itself.

Six Sigma Process:


On the other hand they improved their efficiency by continuously following
Six Sigma Process. The word is a statistical term that measures how far a
given process deviates from perfection. Six Sigma is named after the process
that has six standard deviations on each side of the specification window. It
is a disciplined, data-driven approach and methodology for eliminating
defects. The central idea behind Six Sigma is that if you can measure how
many defects you have in a process, you can systematically figure out how
to eliminate them and get as close to zero defects as possible. Six Sigma
starts with the application of statistical methods for translating information
from customers into specifications for products or services being developed
or produced. Six Sigma is the business strategy and a philosophy of one
working smarter not harder.
Problem solving using Six Sigma
Six Sigma institutionalization
Make Quality a culture within.

Six Sigma Consultancies at Wipro:


Wipros Six Sigma consulting experience has peaked with the indigenous
development of new methodologies that it takes to its customers. As Wipro
continues Six Sigma consulting journey, it builds on its expertise and
experience to provide enterprise-class coverage of topics in business process
management and information technology systems integration. The focus is
on supporting the project needs and is also integrated with other methods to
support process needs. Currently there are over 200PMI certified consultants
at Wipro. The Wipro quality consulting group trains in achieving the precision
of Six Sigma with Wipros own methodologies, training capabilities and global

experience. Wipro also helps in institutionalizing Six Sigma across the


organization for transformation. Wipro provides consulting in
institutionalizing an organization wide Six Sigma program that specializes in
implementation across IT development, production support and core
business operations.
Wipro offers the following Six Sigma consulting services
Consistently meet and exceed customer expectations
Ensure robust processes within the organization
Have products and services meet global benchmarks
One sigma gives a precision of 68.27%., two sigma, of 95.45% and
three sigma of 99.73%, whereas Six Sigma gives a precision of
99.9997%.Although 99.73% sounds very good, it slowly dawned on
companies that there is a tremendous difference between 99.73% and
99.9997%. For example for every million articles of mail, the difference
is between 66,738 lost items and 3.4 lost items.

Evolution of Six Sigma at Wipro:


Wipro is the first Indian company to adopt Six Sigma. Today, Wipro has one of
the most mature Six Sigma programs in the industry ensuring that 91% of
the projects are completed on schedule, mush above the industry average of
55%. As the pioneers of Six Sigma in India, Wipro has already put around ten
years into process improvement through Six Sigma. Along the way, it has
scaled Six Sigma ladder, while helping to roll out over 1000 projects. The Six
Sigma program spreads right across verticals and impacts multiple areas
such as project management, market development and resource utilization.
Six-Sigma at Wipro simply means a measure of quality that strives for near

perfection. It is an umbrella initiative covering all business units and divisions


so that it could transform itself in a world class organization. At Wipro, it
means: Tangible cost savings due to lower application development cost for
customer.

Social Environment:
As time ran, the threat of new entrant in this industry is high because of low
investment needs. So the existing companies need to come up with
innovative solutions to attract and keep its customers and its shareholders to
be sustained in the market. Then they came with Green IT solutions, which is
eco friendly hardware components, reusable and made of low toxic
materials. At the same time Wipro ltd was very clear about their path they
had chosen and the position they wanted to maintain. They had financial
services and Wipro net. When other players came in Wipro wasnt able to
perform better, because the other players were having those businesses as
their core, so they excelled in that. After all players came in, Wipro was not
performing well. So the company decided to quit those two services in 2002.

Brief History

Wipro Ltd. started its journey in 1947 as a vegetable oil trading company
(Western India Palm Refined Oils) in Amalner, Maharashtra, India. It was M. H.
Premji, father of its current Chairman Azim Premji, who founded Wipro. After
his sudden demise in 1966, his son, a Stanford University graduate in
Electrical Engineering, took the onus of leadership at the age of 21.
Azim Premji repositioned the company into a consumer goods company and
started producing hydrogenated cooking oils, laundry soap, wax and tin
containers. Later Wipro Fluid was set up, which started manufacturing
hydraulic and pneumatic cylinders for the industrial trucks and heavy
machines. In 1977, after IBM left Indian IT sector, Wipro entered into the
market. It started developing its own computers within a couple of years
Wipro Ltd. started selling finished products. It licensed technology from
Sentinel Computers in U.S. Wipro is also the manufacturer of Indias first mini
computers. In 1980, Wipro Ltd. moved towards software development, when
they started providing customized software to their hardware customers or
clients. This was just a beginning of a new era for Wipro. It spread its roots
off shore in U.S. in 1992. By 2000, Wipro Ltd. managed to get enlisted on the
New York Stock Exchange. Wipros evolution from inception is given at the
end of this project.

Financials:
Wipro Limited saw a stunning growth in terms of its revenue which
soared up by 450% from 2002 to2007. In the quarter ended September
30, 2009, the IT Services business of Wipro Ltd. reported revenue of
49.96 billion with a growth rate of 5% year on year. It also recorded
PBIT of 11.87 billion with a growth rate of 19% year on year. During the
quarter, the operating income to the revenue was 23.8%. During the
quarter, Wipro Ltd. also added 37 new clients to its list. Currently as of
2011 December, Wipro has employee strength of 120,000.
Innovation at Wipro Ltd:
As we enter the second decade of the 21st Century, change seems to
be the only constant. This dynamic means that businesses are facing
challenges and opportunities which are very different to what they
were a decade ago or even a year ago.
Product Engineering Solutions:
Wipro is the largest independent provider of IT Services: Wipro
provides complete range of IT Services to the organization. The range
of services extends from Enterprise Application Services (CRM, ERP, eProcurement and SCM) to e-Business solutions. Wipros enterprise
solutions serve a host of industries such as Energy and Utilities,
Finance, Telecom, and Media and Entertainment.

WIPRO MARKETS ITSELF

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:

Search engine promotion


Thought leadership content on leading IT portals and directories
Web seminars and events
Website content

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.

Building on the "pull" elements, Wipro uses permission marketing to


strengthen relationships and move prospects along the sales cycle. Specific
initiatives include telesales, direct mail, and industry-based newsletters. In
all cases, the marketing team relies on the prospect database to create
carefully targeted lists based on incoming traffic, client profiles, and ongoing
Web activity. This helps create the greatest possible impact from the limited
"push" activities. Typical marketing campaigns today target as few as 30 to
50 accounts.

Many firms talk of a single view of the customer, yet just as many are
saddled with disparate databases and uncoordinated marketing and sales
activities. The common result is that some prospects are bombarded with
conflicting messages through different channels while others simply fall
through the cracks.
Wipro faced exactly that challenge several years ago and invested in the
creation of a single prospect intelligence database that provides a complete
view of all marketing and sales interactions with prospect companies as well
as extensive profile information. The database now includes detailed data on
multiple contacts from almost every company in the Fortune 1,000 and more
than 17,500 senior management contacts in all. The database is so effective
that Wipro no longer buys lists of any kind to support its marketing efforts.

Results from Wipro's integrated lead-generation program have greatly


exceeded expectations and created an extremely high return on marketing
investment. Along with a surge in qualified leads has come a greatly
accelerated sales cycle. The typical six- to nine-month sales cycle has been
shortened to 30 days in some cases. Leads are converted to sales far more
quickly because the targeted approach is more personalized and focused.

The particular tactics at the heart of Wipro's program are well known, if not
always well developed. No doubt Wipro has done a great job in improving its
Website, developing newsletter and Web events, and targeting the right
prospects. And it is certainly helped by being in a growing market. Yet the
great power and the most important lessons of the program lie in its
integrated nature and its disciplined execution.

INBOUND & OUTBOUND

Global Data Synchronization for Distributors


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.

Achieving Data Synchronization

Internal It Systems Integration


Cleanse data in catalogs
Make systems GTIN and GLN compliant
Implement a Product Information Management system

External Data Synchronization

Establish a messaging system and a data pool compliant to EAN.UCC


standards
Synchronize basic item data with enterprise master catalog with
manufacturers and retailers
Syndicate the relationship dependent pricing and promotion data with
retailers

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 1: GDS is only for retailers and manufacturers.


GDS is equally important for distributors. Aligning internal party and product
data with upstream and downstream trading partners is essential for
avoiding losses due to lack of accurate and timely product and party
information.
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.
MYTH 3: Internal synchronization of item and party information is
important only for retailers and manufacturers.
As a distributor you serve as a hub for many-to-many relationships between
manufacturers and retailers (and hence you need to maintain information

about both manufacturers and retailers). This is why your internal


synchronization is extremely important for ensuring efficiency in logistics
operations.
MYTH 4: Distributors should go for only promotion and pricing
synchronization.
It is true that promotion and pricing data are relationship dependent and
hence needs to be synchronized between distributors and retailers. However,
in order to sync these data, distributors should have access to updated and
accurate basic item data which adhere to global standards as espoused by
EAN and UCC. This requires that the distributors internal systems be in sync
with those of the manufacturers and retailers data.

Wipro Service Oferings

Theme Story Distributors among Top 10 outsourcing players


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

distributors

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:

Provide Global Data Synchronization ( GDS ) as a value added service


to customers

Support VMI schemes serving as the single point of contact and


contract compliance for big suppliers

Compete with 3 PL players to provide order fulfillment and in bound


logistics services

Distribution Framework

Common Product Catalog

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. Wipros 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.

Centers of Excellence (CoE)

Wipros ability to provide business-focused solutions stems from the fact


that Wipros 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 Wipros 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

Wipros Supply Chain activities encompass business consulting, end-to-end


business process re-engineering, product evaluation and implementation.
The CoE has competencies in Process Assessment, Contract Management,
Supplier Management, CPFR, Demand Forecasting, Compliance (such as
Sarbanes

Oxley

Compliance),

Transportation.

Merchandising & Pricing

Warehousing,

Global

Sourcing

and

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 retailersupplier

collaboration.

RFID

Wipro RFID Competence centre provides a comprehensive portfolio of


EPC/RFID solutions and services to meet the retailers mandate and to
automate the business operations of CPG companies looking beyond
compliance. Wipros services span the compete progression through building
business case, RFID roadmap, integration and deployment.

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.

Trade Promotion Management


The TPM CoE offers a comprehensive approach for trade promotion
business process assessment, gap identification and recommendations
for improvement. Wipros services span from Trade Promotion
Technology solution evaluation, enablement, deployment and help

consumer goods companies reduce cost by managing Trade Promotion


Administration and Analytics.

Manufacturing Execution Systems


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

SWOT Analysis

In this internal analysis usually SWOT analysis is used. It is an effective way


to use this and will be easy to identify the companys strengths and
weaknesses. The opportunities and threats we found in the external analysis

will be matched here and the companys core competencies also considered
and will work on the improvement area. WIPRO Technologies:

Strengths:
Global R&D facility Continuous Innovation: Wipro has global Research
and development facility. It keeps on innovating new products and services in
order it retain its customer and to attract new clients and shareholders in the
market. Its global R & D is a very strong strength for it.
Vast clientele base: Its large client base throughout the world gives
strength for it. In its starting years itfirst headed into hardware business,
then it started providing software solutions to them then diversified as a
company. The global clients of Wipro Technologies are always strength for it.
The down turn in one economy can be pacified by performing well in other
economy.
High skilled employees across industries: Wipros one of the main
strength is its highly skilled employees. The HR practices they follow are very
much suitable and sustainable, where in IT industry the attrition rate is very
high.
Economies of scale - Low cost advantage: As they have already had their
domestic as well as their global clients, this is an advantage over all. The
economies of scale can be achieved easily when compared to start ups. For
example when they started the Wipro Consulting Company, it earned 2
Crores within its first quarter of operations, because the client base is huge
and the economies of scale are also high for it.
Strong brand value: As Wipro Technologies is the 2nd largest IT end to end
service provider in the world; it has attained its brand value. So customers
will prefer Wipro technologies for its quality.

Client satisfaction - Quality products & Concentrating on mature markets:


Domestic market is huge but is underdeveloped. If Wipro Technology
considers capturing the remaining under developed rural areas like sub
metros, it could have a very strong base in India and can improve its share
and can be a No 1 player in IT sector.
Low operating margin of the other group companies: Even though IT
sector creates huge profits for Wipro Ltd, the other group companies like
customer care and Lighting is just accounting for only 9% for the total
revenue. So a conglomerate company like Wipro will get affected if one of its
main sectors fails. There are other players who are especially in those same
sectors who already excelled in that sector like HUL, ITC etc.
Delivery capabilities: Wipro Ltd achieved all these because its continuous
assured quality providing capacity and commitment. The clients are more
satisfied with Wipro.
Alliances with top global companies GE, Cisco, EMC, Microsoft, Oracle
and SAP: To be a global player, a company needs to have alliance with
various other companies to provide on time service and delivery. Certainly
its one of its main strengths. The network strength is very high.
Green thoughts - Eco friendly products: Where Wipro operates, the
innovation keeps on gaining its own value among people. Its green thoughts
like Green IT that is reusable computer peripherals and less toxic material
usage for its production are their strength. The green office area an
innovative thought, which benefits its businesses.
Customized products: It provides customized products for several industries
like aerospace, Engineering Infrastructure, Medical equipments; Lighting
solutions etc are its strengths.

Weaknesses:
Huge potential in domestic market: It has potential to capture more market
share in Indian It industry. So it has both global and domestic opportunity to
expand.

Threats:
Increasing cost of human capital: As it is well known about IT and BPO
industry, the attrition rate is always high. So hiring new people is a huge cost
incurring process every year. Then the Training and Development cost is also
highly cost counting part in IT industry.
Intense rivalry in IT Industry: The rivalry among Indian It industry is very
high, because the entry Barrier is very low. It needs a low investment cost to
start an IT company.
Environmental change: Changing Environmental conditions like economic
meltdown and Changing technology is a big threat to companies in IT
industry. It will face fierce competition in the areas of e- business and ASP
services.
Slowdown in the banking, financial services and insurance (BFSI)
sector. Other conglomerates like ITC, Reliance, Aditya Birla group may enter
into various industries and take over the benefits of WIPRO.
Exchange rate: This can be a threat to the company as the company is
making profits due to the high exchange rate and if this rate comes down in
future it can lead to a major problem for the company.

Changing Laws and Regulations: Government rules and regulation


change may be a threat for IT industry companies, exactly for Wipro
Technologies, which relies more on overseas projects.
Strategy of Wipro Technologies: In this changing day to day
technological environment the blurring of geographic boundaries and the
need to expand in global emerging markets, business leaders at the worlds
largest companies see strategic innovation as crucial to their future growth
plans, according to an exclusive Wipro-Forbes Insights

Opportunities:
Huge global market: As it is already a renowned global company, it has a
huge scope in global market. The company has entered into the global
market so now its the biggest opportunity available to the company.
Emerging technology: As it has skilled work force, it always have
opportunity to come up with new technologies.
In the consultancy area and BPO area: As Wipro Consultancy is in the list
of top consultancies, it could achieve more with its vast client base. In BPO
industry it is in 2nd top company in India. It could achieve to come to first
place.
The in-depth insight study examined and summarized the views of over 300
CEOs and other C-level executives at global enterprises.

Suggestions

Adopt the Dynamic High Technology Strategy: Speed-to-market is


necessary for successful innovation. Getting a product or service swiftly out
to market is a critical business innovation tactic. Cost remains the biggest
hurdle to fostering innovation. It will be always barriers for R & D. Issues
related to the regulatory environment, and finding and retaining top talent.
Paying attention to best practices is the most effective way to foster
innovation. Other innovation tactics included technology, data-based
decision making, and customer collaboration.
Clear business case for using green practices. Green business
practices as a part of their corporate innovation strategies. Green IT is a
priority for more than three quarters of companies.
Increase Global Presence: China holds the greatest opportunity, followed
by India, Southeast Asia, and Eastern Europe. More collaborations with other
players; reduce dependence on only few players

Conclusion:

Till today Wipro has been known for being very process oriented with a focus
on quality and cost savings. Wipro long term strategy should be to create a
brand image and be known for innovation. Wipro should invest in R&D and
Market research, so that it is able to innovate new solutions for clients to cut
costs or reduce time to market or improve reliability.

References:

http://wiki.answers.com/Q/What_is_Wipros_mission_and_vision#ixzz1ottCfYG
M
http://www.anil2u.info/2010/03/top-100-it-companies-rank-wise-list/
http://www.indianmirror.com/indian-industries/informationtechnology.htmlhttp://books.google.co.in/books?
id=EPai4FgFA2YC&pg=PA165&lpg=PA165&dq=bargaining+power+for+wipro
&source=bl&ots=rlezwgfQVN&sig=LJY5BIW7tS3DPu9mNub0_HY4OW4&hl=e
n&sa=X&ei=_fNZT7wIc_JrAf1jsGHDA&ved=0CEUQ6AEwBA#v=onepage&q&f=falsehttp://www.a
nswers.com/topic/wipro-technologieshttp://www.equitymaster.com/researchit/sector-info/software/
http://www.thehindubusinessline.com/companies/article2048647.ecehttp://wi
pro.co.in
http://economictimes.indiatimes.com/wiproltd/infocompanyhistory/companyid-12799.cms
http://www.wipro.com/documents/resourcecenter/It_investments_and_business_value.pdf

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