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wipro: New model to sharpen Wipro’s cloud focus

Wipro announced a new structure on Monday, creating four new business lines – enterprise futuring, full-stride cloud, engineering edge and consulting. The new model will help the Bengaluru-based firm accelerate decision-making and sharpen its focus on cloud offerings, said industry experts.

“The new model helps Wipro make faster decisions and channel its investments more effectively. The faster the decision-making, the more effective it will be staying ahead of this market,” said Phil Fersht, founder, HFS Research.

Under the new model, Wipro has created four global business lines organised around cloud, enterprise technology and business transformation, engineering and consulting, according to the exchange filing. The changes will take effect from April 1.

The company is transitioning towards what HFS Research calls “one office” approach, a digital business model where barriers between front and back offices no longer exist. Besides, decisions can be made by predicting events, not merely reacting to historical data archives.

“It is about understanding and discovering the data you must have to win in your market – right now in real time and in the future – as the market environment keeps evolving. This is Wipro’s intent here,” Fersht told ET.

Experts also said the reorganisation means the company will sharpen its focus on cloud business. Currently, cloud drived one-third of its revenues.

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“To meet the changing (needs of clients), we are transforming our Wipro FullStride Cloud Services into its own business line to sharpen our cloud go-to-market strategy, pivoting our cloud infrastructure business to the cloud, accelerating our end-to-end delivery engine, and building differentiated and futuristic solutions that will enable us to capture a bigger share of the cloud market,” said Wipro in reply to ET’s request for comments.The changes are a natural evolution of the transformation journey and are designed to deepen alignment to clients’ evolving business needs and capitalize on emerging opportunities in high-growth segments of the market, it added.

Wipro has been experiencing a flurry of top-level exits, including its CEO of Americas, Angan Guha, and also reportedly president, Rajan Kohli.

Wipro’s existing global business lines – icore and ideas model – introduced in January 2021 may be phased out, said experts. They also said the reset may aid Wipro to play catch-up as it has been lagging peers on organic growth.

Morgan Stanley, in its report, said Wipro’s plan to realign its service offerings into four global business lines indicates a sharpening of its focus and a doubling down on its investments and management bandwidth to grow each of them.

Tata Consultancy Services (TCS) also did an organisational restructuring last year, though the model was different. In April 2022, the IT firm re-ordered its business into groups – acquisition, relationship incubation, enterprise growth and business transformation – presenting an industry-first model that moved away from the “traditional three-dimension (framework) of geography, vertical or services”, people aware of the matter told ET at the time, while providing a razor-sharp focus on clients, their changing digital needs and faster delivery.

Wipro’s approach is capabilities-driven while TCS’ reorganisation was based on its clients’ maturity and focused on sales, according to experts.

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