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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
SUBMITTED BY
MR. DHRUV S. SANGHAVI
MMS 13-15
ROLL NO. 047
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
MMS (2013-2015)
UNDER THE GUIDANCE OF
PROF. NEHA GUPTA
K.J. SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

wipro1.jpg
C:\Users\Dhruv\Desktop\Sem 4 docs\simsr.png
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 t
hat 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 MANAGEMEN
T
STUDIES (MMS) program at K J SOMAIYA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH,
has worked under my guidance and supervision. This final term project report tit
le INDUSTRY
ANALYSIS OF THE INFORMATION TECGNOLOGY SECTOR AND UNDERSTANDING THE
COMPANY PROFILE OF WIPRO TECHNOLOGIES LIMITED has the requisite standard and to t
he
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 opportuni
ty 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 creati
ve. This
project has given me the chance to get in touch with the practical aspects of ma
nagement.
I am extremely grateful to the University of Mumbai for having prescribed this p
roject work to
me as a part of the academic requirement in the Master of Management Studies (MM
S) course.
I wish to appreciate the Somaiya Management and K J Somaiya Institute of Managem
ent
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 throughou
t the project.
I also appreciate all the support provided by the library staff and the teaching
and supporting
staff 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 re
sources to
enable the completion of my project.

Table of Contents
Chapter 1
Introduction and industry analysis
Executive Summary ..............................................................
........................................................................ 7
Introduction To IT Industry In India ...........................................
................................................................... 9
Market Overview ................................................................
....................................................................... 14
Porter s Five Force Model ........................................................
................................................................... 15
Chapter 2 - Company Profile
About Wipro Limited ............................................................
...................................................................... 20
Time Line : Milestones .........................................................
....................................................................... 22
Wipro s Mission and Vision: ......................................................
.................................................................. 23
Group Companies of Wipro .......................................................
................................................................. 25
Business .......................................................................
.............................................................................. 2
8
Products .......................................................................
.............................................................................. 2
8
Chapter 3 - Environment analysis
Environment analysis: External and Internal ....................................
.......................................................... 30
Chapter 4 - About Wipro Technologies
Wipro Technologies .............................................................
...................................................................... 34
Brief History ..................................................................
............................................................................. 41
Wipro Markets Itself ...........................................................
....................................................................... 43
Inbound & Outbound .............................................................
.................................................................... 45
Wipro Service Offerings ........................................................
...................................................................... 48
SWOT Analysis...................................................................
......................................................................... 55
Chapter 5 - Suggestions & References
Suggestions ....................................................................
............................................................................ 59
Conclusion .....................................................................
............................................................................. 60
References: ....................................................................
............................................................................ 61

wipro1.jpg
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, Ta
iwan, France
and United Kingdom. Wipro has set a vision for itself to become a US$ 5 bn compa
ny 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 I
ndia. 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 15000+ employees
out of which 11500 employees are in IT
business. Wipro follows Six Sigma quality systems and
is also a SEI-CMM level 5 company 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 t
otal 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 has emerged as the second largest player and is growing strong
ly and of
toiletries has carved out a niche in the premium segment.
Wiproalso had an interest in the financial services industry through asubsidiary
- 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 Aether systems, Agea corporation for m-comm
erce; with
Neon, STC, Vitria, Mercator, Seagull for Enterprise Application Integration; wit
h SAP for ERP;
with Siebel, Clarify, Pivotal for Customer Relationship Management; with Compute
r Associates,
Cisco, Nortel, Sun for Technology Infrastructure Services etc.

Introduction To It Industry In India


India has emerged as the fastest growing IT hub in the world, its growth dominat
ed by IT
software and services such as Custom Application Development and Maintenance (CA
DM),
System Integration, IT Consulting, Application Management, IS Outsourcing, Infra
structure
Management Services, Software testing, Service-oriented architecture and Web ser
vices.
When it comes to IT services, the world is coming to India. With a CAGR of 28 pe
r 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 mark
et)
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 billi
on in FY
05-06.

. Growth Drivers
According to Nasscom, the growth in India's services exports has been led by man
y factors,
including:
A strong demand and increased traction for traditional services like ADM
New services like EAI (Enterprise Application Integration) and package implement
ation
New areas like engineering services.
Indian companies are enhancing their global service delivery capabilities throug
h a
combination of green-field initiatives, cross-border M&A, partnerships and allia
nces
with local players.
Global software product giants such as Microsoft, Oracle and SAP have establishe
d 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 percen
t 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 othe
rs, the India
R&D centre is their largest facility outside the US or Europe.
Others, including IBM, Texas Instruments, Delphi, HP, Microsoft, Google and Cisc
o 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 ins
tance:
SAP Labs India is SAP s 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&D s recent contributions include complete design of the Centrino mobile chip cal
led
Napa.
STM has built a state-of-the-art design campus in Greater Noida, which once full
y
developed, will have 5,000 engineers. The company has earmarked US$ 30 million i
n
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 Communica
tions and IT,
against 28 companies that outlined their investment plans, 17 have already infus
ed capital. Six
of these companies have committed over US$ 1 billion each towards their India op
erations. This
includes Cisco s commitment of US$ 1.1 billion, SemIndia s US$ 3 billion proposed in
vestment,
Intel s US$ 1.25 billion, Microsoft s US$ 1.7 billion, IBM s US$ 6 billion, and SAP La
b s US$ 1
billion investment.
. Hardware on a high road
According to the IT industry s 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 India s IT industry.
Desktops: Desktop shipments have gone from 1.9 million units in 2000-01 to 4.6 m
illion
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 2
005-06.
Annual sales increased by 81 per cent, with 48 per cent of sales headed for Indi
a s 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 2
005-06.
Inkjets continue to dominate the market. Of the more than 1.5 million printers s
old 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 India s small cities.
Keyboards and Monitors: Keyboards have shown an annual growth of 26 per cent, an
d a
CAGR of 28 per cent. Monitor sales, dominated by the 15-inch monitors, have show
n an
annual growth of 27 per cent and a CAGR of 28 per cent.
Internet: India s internet penetration has gone from 350,000 in 2000-01 to 4,124,0
00 in
2005-06. One in four SEC-A households in India have an active internet connectio
n,
while 48 per cent of all business and 16 per cent of all homes have an active in
ternet
connection in the top 4 metros. Users are moving away from dial-up lines and opt
ing 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 India s Tier-II cities, and the numbers spea
k for themselves. In
2000-01, 68 per cent of total PC sales were in the top 4 cities Indian metros. I
n 2005-06, that
number is down to 33 per cent. Sales of PCs in smaller towns grew 35 per cent, a
ccounting 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 comput
ers with a
passion. There has been a 127 per cent growth in retail outlets buying desktops,
between 200001 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 Nasscom s projections, o


verall 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 betwe
en US$ 29-31
billion.

Growth of IT Industry (in US $bn)


01020304050607080901002002-20032003-20042004-20052005-20062006-20072007-2008Year
sUS $ bn
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 1
992
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 sec
tor and the
opportunities the future holds. According to NASSCOM s estimates for the fiscal ye
ar 2000-01,
the country s software industry is worth $8.26 billion, up from $100 million ten y
ears 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 expecte
d 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 resou
rces
pool and brand-building takes a long time to achieve economies of scale. New ent
rants
will have to survive till they achieve the economies of scale. In a dynamic indu
stry,
where each and every day a new software and technology coming up, it s difficult f
or
new entrants to have such a dynamic infrastructure to accommodate such
developments at this speed.
Proprietary product differences: Medium
It can bring the differences in individual s brand and enable them to attract prem
ium
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 th
eir
specialization area, the clients don t have any switching cost or very low switchi
ng cost
and they can have the same quality service from other players.
Capital Requirement: Low

So as to start an IT company in India it s not difficult, but the difficulty lies


with the
investment in people s training and development and brand building. As we are well
known the fact of attrition rate in Indian IT industry, the cost required is qui
te high.
Government Policies: Low
Government has been favoring so far with IT industry. So there will not be inten
se
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 .
Differentiation of Inputs: High
It s a people oriented business and people as an input to the business or to the p
rocess
can make a huge difference.
Supplier Concentration: Medium
It is all about the talented and skilled people availability in India and the ce
nters, where
the company operates. It is high in India especially in urban and metro areas.
Impact of inputs on cost or differentiation: High
Again people as an input can create a dramatic difference on cost as well its im
pact on
company s image. The surveys like the top ten companies people wish to work, creat
es
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 peopl
e. 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 re
ly on
them to some extent.
Buyer Volume: High Wipro has its large client base and it is providing integrate
d
services. Each and every year it is adding to its customer base. So the buyer vo
lume 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 sta
rt-up
companies have less capacity to do that. At the same time large companies can do
it if
they feel their supplier s bargaining power goes up. So some of the MNCs are setti
ng up
their own development center.
Substitute product: High
The number of substitute product or service is more easily available in the indu
stry for
low cost. The quality and the reliability of those products are sometimes create
s
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 sol
ution
model of products have the control over price factor.
Product difference: Low

Basic products and services are more over same. There is hardly any difference a
mong
big players.
Threat of substitutes: High
Relative price performance of substitutes: high
Here the substitutes are other major player offering the same services at differ
ent price
or small players offering the same with very low cost.
Switching cost: Low
It s 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.
Buyer s propensity to substitute: Medium
For the same quality substitute buyer s propensity to substitute is high. At the s
ame
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 sc
ale 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 clien
t is also
increasing with the need of developing their business with technological advance
ments.

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 difference: Low.
Basic products and services are more over same. There is hardly any difference a
mong
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
customer s
preferences, employee s preferences to work in a particular company, other company s
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 s
plit 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 con
tracts
basically would be for more than 5 to 10 years. The contracts having more credib
ility
services, which should be provided by the company like data management service f
or a
bank includes all its data about customer accounts. So accompany which signed fo
r this
contract can t stop in middle.

azim_premji.jpg
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 w
ith 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 als
o a SEI-CMM
level 5 companies with principal lines of businesses being information technolog
y (IT) and
consumer products. It also has other businesses of fluid power, lighting, medica
l 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 th
e 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 de
velopment
centers across India, Europe and USA and also has 21 offices in USA, Canada, Fin
land, Taiwan,
France and United Kingdom. Wipro has set a vision for itself to become a US$ 5 b
n 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 brand
s in India.
Wipro is a global company with revenues of Rs 30922MN for the year 2001. The rev
enues for

the company have been growing at an annual average rate of23% and PAT at an annu
al average
rate of 50%.
It employs total of 15000+ employees out of which 11500employees are in IT busin
ess.
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 se
rvices. IT, which
includes software services as well as hardware products, makes up the largest ch
unk of
business for Wipro. It accounts for 84% of total revenues of Wipro ltd. the Glob
al IT services
contributes 57% of total revenues whereas Indian IT services contribute 27% of t
otal 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 toiletri
es 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 t
he company for
the last three years and this year the company has divested a significant portio
n of this
company and it is no longer a subsidiary of Wipro. Wipro has a number of allianc
es with global
leaders like Vignette, ATG (Art Technology Group), Open Market, iPlanet for e-bu
siness; with
Anther systems, Age corporation for m-commerce; with Neon, STC, Vitria, Mercator
, Seagull for
Enterprise Application Integration; with SAP for ERP; with Siebel, Clarify, Pivo
tal for Customer
Relationship Management; with Computer Associates, Cisco, Nortel, Sun for Techno
logy
Infrastructure Services etc.

Time Line : Milestones

1945:
1947:
1966:
1975:

Incorporation of Western India Products Limited.


An oil mill and hydrogenated cooking medium plant set up.
Azim Premji takes over the leadership of Wipro at the age of 21.
Wipro Fluid Power set up to manufacture hydraulic and pneumatic cylinders.

1977:
1980:
1981:
1982:
1984:
1985:
1988:

Name of the company changed to Wipro Products Limited.


Information technology services for domestic market started.
Hardware company is launched.
Name of the company changed to Wipro Limited.
Software products subsidiary - Wipro Systems Ltd. - established.
Toilet soaps manufacture begins.
Wipro BioMed, a new business unit to market and service bio-analytical 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 busin
ess 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)

Wipro s Mission and Vision:


Having already achieved the pinnacles of process and quality credentials (throug
h ISO 9000, SEI
CMM,PCMM and Six Sigma), Wipro s 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 creatin
g an
environment of empowerment, intellectual challenge and wealth sharing.
Brand Leadership: Wipro to be among the 5 most admired brand in India. Wipro ent
ers into
various industries for various businesses in a constant innovative manner. This
shows the firm s
strong approach of tapping new market with the spirit of achievement.

Group Companies of Wipro


Accounting, Procurement, HR Services, Loyalty Services and Knowledge Services. I
n
2002, Wipro acquiring Spectramind and became one of the largest BPO service play
ers.
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 p
atient
needs with a commitment to uncompromising quality. Wipro GE is India s largest
exporter of medical systems, with unmatched distribution and service reach in So
uth
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 servi
ces in
South Asia.
Wipro Technologies:
Wipro Technologies is a global services provider delivering technology-driven bu
siness
solutions. Wipro is the No.1 provider of integrated business, technology and pro
cess
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 compa
ny 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 profit
able
presence in the branded retail market of toilet soaps, hair care soaps, baby car
e
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 app
lication
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 Limited s 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 Enginee
ring
business unit has become a leader in the Hydraulic Cylinders and Truck Tipping S
ystems
markets in India, and intends growing its business to serve the global manufactu
ring
requirements of Hydraulic Cylinders and Truck Tippers. It has emerged as the lea
der in
the hydraulic cylinders and truck tipping systems market in India.
World s largest independent, first Indian IT Service Provider to be awarded Gold-L
evel
Status in Microsoft s Windows Embedded Partner Program.
Wipro is presently ranked among the top 100 Technology companies in the world. I
t has
120,000 employees, serves 592 clients, and has 46 development centers across glo
be.
Alliances: Wipro works with alliance partners to offer compelling business propo
sitions for
the customers. Wipro s alignment with the technology leaders across various indust
ries
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 b
ringing
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 i
n 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.
World s 1st IT Services Company to use Six Sigma
Worlds 1st PCMM Level-5 software company

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

Environment analysis: External


Demographic Forces: Demographic forces are outcomes of changes in the characteri
stics of a
population, such as age, gender, ethnic, origin, race, sexual orientation and so
cial 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 women s right and education gained more
importance. By around 1980 s women s literacy rate in India is 25.6%, and then it st
arted
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 sensiti
ve now. But
the IT sector, where nearly 30% of the entire workforce is comprised of women, i
s 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 pas
t two
decades made a significant impact on women s employment. Wipro gives equal employm
ent
opportunity for women. It recently decided to increase its female work force rat
e from 13%to
20%. That s how it enriches and keeps its employees in a competitive high attritio
n rated
industry like IT, ITES, BPO and health care. Three years ago, it conducted a stu
dy amongst its
women employees, and came up with a Women of Wipro policy -- a policy that is de
signed 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 hig
h
performing women employees across levels, both on professional and personal fron
ts.
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 diver
sification in
various industries. Even when it was under his father s administration he took tha
t into a

consumer market segment, where he had seen an opportunity to tap the consumer go
ods
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
1970 s. The growth of country has its one of the bases as infrastructure developme
nt which
should be in both private and government sectors. They foresee it in a better wa
y and decided
to enter in to a market where they could achieve the top level, which was engine
ering and
manufacturing of hydraulic and pneumatic cylinders. This provides solutions by h
ydraulic and
pneumatic cylinders, truck tipping systems for the trucks and heavy industry mac
hines and for
army tanks and vehicles.
Wipro Technologies From 1970 s to 1990 s:
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 n
ot 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 h
ardware
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 Info
sys, Wipro and
TCS to concentrate in software industry very actively. The trend of growth rate
of India s
economy demonstrates an upward trend. During the period of 1960 to 1980 the econ
omy 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 low
er 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 st
ruggling to come
up. Then the start of 21stcentury till 2008 the economic conditions were favorab
le for this
industry.
The contribution towards country s GDP was increasing year on year from 2000 to 20
08. Then
the world economic slowdown hit software industry in India and melted so many co
mpanies 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 industry s contribution to the country s GDP has been steadily increasin
g from a
share of 1.2percent in 1997-1998 to 5.2 percent in 2006-2007, according to NASSC
OM-Deloitte
study. The Indian Software Industry has grown from a mere US $ 150 million in 19
91-92 to a
staggering US $ 5.7 billion in1999-2000. No other Indian industry has performed
so well against
the global competition. According to statistics, India s software exports reached
total revenues
of Rs 46100 crores. The total share of India s exports in the global market rose f
rom 4.9 per
cent in 1997 to 20.4 percent in 2002-03. The Indian software industry was consid
ered to be the
biggest employer expected four million jobs in 2008. It accounted for seven perc
ent of India s
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 India s software e
xports is
about 61 per cent. In1999-2000, more than one third of Fortune 500 companies out
sourced
their software requirements to India. The software industry being the main compo
nent of the
IT Industry in India has also helped the IT sector in India to grow at a good pa
ce. As per the
proceedings taking place in the software industry the future of the India Softwa
re Industry
looks promising.
Political and Legal Environment:
From 1970 s to 1990 s:
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 t
ime Indian
economy was state-controlled and the state remained hostile to the software indu
stry 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 als
o played a
vital role in the development of the India Software Industry. In 1986, the India
n government
announced a new software policy which was designed to serve as a catalyst for th
e software
industry. This was followed in 1988 with the World Market Policy and the establi
shment of the
Software Technology Parks of India (STP) scheme. Package of reduced import tarif
fs 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 India
n domestic
players like Infosys , Wipro and TCS to concentrate in software industry very ac
tively.
The trend of growth rate of India s economy demonstrates an upward trend. In addit
ion, to
attract foreign direct investment, the Indian Government permitted foreign equit
y of up to 100
percent and duty free import on all inputs and products.
After 1990 s:
When the liberalization took place, India s Information technology had a huge adva
ntage over
it. Then onwards the boom started and the big players like Wipro, Infosys, TCS s
tarted being
stable enough to survive in the industry. Liberalization gave them the opportuni
ty to go global
and to get their investment to expand their businesses in various sub sectors li
ke 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 t
ill 2008 the
economic condition were really good for this industry

Wipro Technologies
The time line shows the consistent innovativeness of Wipro ltd throughout its jo
urney. Wipro
ltd was very quick to react for governmental or legal environmental changes. Tho
se 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 govern
mental
environmental changes was to diversify in to IT hardware and later IT software i
ndustries. In
1977, IBM was in Development of the free Linux kernel is started by Linus Torval
ds 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 prov
iding their
goods in a competitive price, so as to capture the market. In order to compete w
ith the big
players with the price and quality, everyone in the industry needs to change the
ir 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 ex
pected to
happen on January 1, 2000
. Instant Messaging and the buddy list becomes popular. AIM and ICQ are two earl
y 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 Explor
er 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 disp
lace the
Gopher protocol.
. A situation, which it needed to leave from India, because of government regula
tory rules,
Wipro decided to enter Information Technology sector, by serving its domestic cl
ients in IT
Industry. They responded quickly and diversified into Information Technology Ind
ustry in 1979.
Wipro began developing its own computers. In 1981 the launched the Hardware comp
any
which provided the computer peripherals. This was the first in a string of produ
cts that would
make Wipro one of India s first computer makers. Simultaneously in 1980 Wipro move
d into
software development and started developing customized software packages for the
ir
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 busin
esses to
improve their efficiency to survive in the competitive market. The competition m
ostly based on
price and quality of the products. To handle the price sensitive customers the c
ompanies need
to be cost effective in their operations and to be innovative enough to keep the
ir customers
happy in order to retain them. In all the industries new inventions started comi
ng and the
variety of products increased. The import of goods has been increased. Some tech
nologies
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 t
o work
office independent
. Decision-support tools, allowing decision-making to be a part of everybody s job

. Telecommunication networks, allowing organizations to be centralized and decen


tralized 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
1990 s concept
like Business Process Re-engineering (BPR) and in later 1990 s and 2000 the Enterp
rise
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 hel
p organizations
fundamentally rethink how they do their work in order to dramatically improve cu
stomer
service, cut operational costs, and become world-class competitors. A key stimul
us for reengineering has been the continuing development and deployment of sophisticated
information systems and networks. Leading organizations are becoming bolder in u
sing this
technology to support innovative business processes, rather than refining curren
t ways of doing
work Reengineering guidance and relationship of Mission and Work Processes to In
formation
Technology. Business Process Re-engineering (BPR) is basically the fundamental r
e-thinking and
radical re-design, made to an organization s existing resources. It is more than j
ust business
improvising. It is an approach for redesigning the way work is done to better su
pport the
organization s mission and reduce costs. Reengineering starts with a high-level as
sessment of
the organization s mission, strategic goals, and customer needs.
The role of information technology:
Information technology (IT) has historically played an important role in the ree
ngineering
concept. It is considered by some as a major enabler for new forms of working an
d

collaborating within an organization and across organizational border. Early BPR


literature
identified several so called disruptive technologies that were supposed to chall
enge 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 contribu
tor to
improved process efficiency. Also ERP (Enterprise Resource Planning) vendors, su
ch as SAP, JD
Edwards, Oracle, PeopleSoft, positioned their solutions as vehicles for business
process
redesign and improvement.
Enterprise Resource Planning (ERP):
ERP is an organization s management system which uses a software application to in
corporate
all facets of the business, and automate and facilitate the flow of data between
critical backoffice functions, which may include financing, distribution, accounting, invento
ry management,
sales, marketing, planning, human resources, manufacturing, and other operating
units. ERP
software, in turn, is designed to improve both external customer relationships a
nd internal
collaborations by automating tasks and activities that streamline work processes
, shorten
business process cycles, and increase user productivity. A method for standardiz
ed processing,
an ERP software application can both store and recall information when it is req
uired in a realtime 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 ef
ficiencies,
achieve financial goals, manage and streamline the company s operational processes
, replace
an existing ERP software system that is out of date or unable to handle a compan
y s 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 a
chieve absolute
business process automation. While most companies use countless processes, activ
ities and
systems to run operations, workflows and procedures can go awry when it comes to
today s
highly competitive marketplace, thus automatic identification and tracking, allo
wing things to

tell where they are, instead of requiring to be found hindering productivity, gr


owth and
profitability. As a result, the implementation of an ERP software application ca
n result in
increased productivity, reduced operating expenses, improved data flow, and opti
mal
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 k
inds 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 fi
rst quarter itself.
Six Sigma Process:
On the other hand they improved their efficiency by continuously following Six
S
igma Process.
The word is a statistical term that measures how far a given process deviates fr
om perfection.
Six Sigma is named after the process that has six standard deviations on each si
de 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 de
fects you
have in a process, you can systematically figure out how to eliminate them and g
et as close to
zero defects as possible. Six Sigma starts with the application of statistical met
hods for
translating information from customer s into specifications for products or servic
es being
developed or produced. Six Sigma is the business strategy and a philosophy of on
e working
smarter not harder.
Problem solving using Six Sigma
Six Sigma institutionalization
Make Quality a culture within.
Six Sigma Consultancies at Wipro:
Wipro s Six Sigma consulting experience has peaked with the indigenous development
of new
methodologies that it takes to its customers. As Wipro continues Six Sigma consu
lting journey,

it builds on its expertise and experience to provide enterprise-class coverage o


f 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 suppor
t 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 Wipro s own m
ethodologies,
training capabilities and global experience. Wipro also helps in institutionaliz
ing Six Sigma
across the organization for transformation. Wipro provides consulting in institu
tionalizing 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 v
ery
good, it slowly dawned on companies that there is a tremendous difference betwee
n
99.73% and 99.9997%. For example for every million articles of mail, the differe
nce 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 th
e most mature
Six Sigma programs in the industry ensuring that 91% of the projects are complet
ed on
schedule, mush above the industry average of 55%. As the pioneers of Six Sigma i
n India, Wipro
has already put around ten years into process improvement through Six Sigma. Alo
ng the way,
it has scaled Six Sigma ladder, while helping to roll out over 1000 projects. Th
e Six Sigma
program spreads right across verticals and impacts multiple areas such as projec
t management,

market development and resource utilization. Six-Sigma at Wipro simply means a m


easure 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 Wi
pro, 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 i
nvestment needs.
So the existing companies need to come up with innovative solutions to attract a
nd keep its
customers and its shareholders to be sustained in the market. Then they came wit
h Green IT
solutions, which is eco friendly hardware components, reusable and made of low to
xic
materials. At the same time Wipro ltd was very clear about their path they had c
hosen and the
position they wanted to maintain. They had financial services and Wipro net. Whe
n other
players came in Wipro wasn t able to perform better, because the other players wer
e 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 (Weste
rn 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 Stan
ford
University graduate in Electrical Engineering, took the onus of leadership at th
e age of 21.
Azim Premji repositioned the company into a consumer goods company and started p
roducing
hydrogenated cooking oils, laundry soap, wax and tin containers. Later Wipro Flu
id 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 India s first mini computers. In 1980, Wipro Ltd. moved towards so
ftware
development, when they started providing customized software to their hardware c
ustomers
or clients. This was just a beginning of a new era for Wipro. It spread its root
s off shore in U.S.
in 1992. By 2000, Wipro Ltd. managed to get enlisted on the New York Stock Excha
nge. Wipro s
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 4
50%
from 2002 to2007. In the quarter ended September 30, 2009, the IT Services busin
ess of
Wipro Ltd. reported revenue of 49.96 billion with a growth rate of 5% year on ye
ar. It
also recorded PBIT of 11.87 billion with a growth rate of 19% year on year. Duri
ng the
quarter, the operating income to the revenue was 23.8%. During the quarter, Wipr
o 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 opportuni
ties
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 complet
e
range of IT Services to the organization. The range of services extends from Ent
erprise
Application Services (CRM, ERP, e-Procurement and SCM) to e-Business solutions.
Wipro s enterprise solutions serve a host of industries such as Energy and Utiliti
es,
Finance, Telecom, and Media and Entertainment.

WIPRO MARKETS ITSELF


Wipro focuses largely on "pull" marketing initiatives, targeting prospective cli
ents 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 ma
rketing team
has invested heavily in creating a wide range of material to showcase company ca
pabilities 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 demo
nstrate 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 a
nd relationship
development.
Building on the "pull" elements, Wipro uses permission marketing to strengthen r
elationships
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 prosp
ect 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 w
ith disparate
databases and uncoordinated marketing and sales activities. The common result is
that some
prospects are bombarded with conflicting messages through different channels whi
le others
simply fall through the cracks.
Wipro faced exactly that challenge several years ago and invested in the creatio
n of a single
prospect intelligence database that provides a complete view of all marketing an
d sales
interactions with prospect companies as well as extensive profile information. T
he 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 ex
pectations
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 q
uickly
because the targeted approach is more personalized and focused.
The particular tactics at the heart of Wipro's program are well known, if not al
ways well
developed. No doubt Wipro has done a great job in improving its Website, develop
ing
newsletter and Web events, and targeting the right prospects. And it is certainl
y 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.

What Does it Look Like


INBOUND & OUTBOUND

. Global Data Synchronization for Distributors

As a critical link in the supply chain, distributors today need to be aware of t


he 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 an
d
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 d
ata 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 par
tners.
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 manuf
acturers and
retailers (and hence you need to maintain information about both manufacturers a
nd retailers).
This is why your internal synchronization is extremely important for ensuring ef
ficiency 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 ad
here to global
standards as espoused by EAN and UCC. This requires that the distributors interna
l systems be
in sync with those of the manufacturers and retailers data.

What Need to be Done


Wipro Service Offerings

. 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 relea
sed by The
International Association of Outsourcing Professionals (IAOP). The changing reve
nue 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 f
acilities
management for big institutional clients to recipe management for independent re
staurants.
Electronic component distributors play a crucial role in the components supply c
hain by
complementing their line card with other value added services like component sel
ection,
materials management, Vendor managed inventory, programming, environmental compl
iance
and design services. Similarly building material suppliers offer project managem
ent 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 a
ttributed to one
or more of the following reasons:
Distributors have the opportunity to leverage traditional strengths in order ful
fillment and
logistics management to offer a host of supply chain services. Customers are inc
reasingly willing
to outsource non core activities to distributors. Distributors are uniquely posi
tioned 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 va
lue added
services or scale up these services with greater confidence. Sometimes a distrib
utors 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 Informati
on

management investments also empowers the company to offer component information


service
as a fee based service to OEMs, contract manufacturers or Electronic Manufacturi
ng 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 customer
s
Support VMI schemes serving as the single point of contact and contract complian
ce for
big suppliers
Compete with 3 PL players to provide order fulfillment and in bound logistics se
rvices

. Distribution Framework

Common Product Catalog


Wipro can commission a pilot implementation on a pre agreed scope involving a fe
w 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 an
d suppliers by
providing complete visibility and thus increasing reverse logistics velocity and
consumer
satisfaction. Wipro s ready to implement portal solution encompasses efficient proce
sses that
aid in drastic reduction of inventory levels, minimize operational costs in real
-time through
automated workflow and improved inventory and resource utilization.

Centre of Excellence
Centers of Excellence (CoE)
Wipro s ability to provide business-focused solutions stems from the fact that Wip
ro s delivery
organization is supported by "Centers of Excellence" comprising of a dedicated t
eam of domain
experts and functional architects. This enables us to provide winning business s
olutions for the
unique problems faced by Wipro s clients and help them proactively respond to indu
stry trends.

The CoE helps build Point Solutions and Frameworks with reusable plug and play c
omponents
that help in developing high performance solutions to enable faster deployment a
nd end-toend verification & validation before final roll-out.

In Store
In Store CoE helps retail organizations stream line their store operations and b
enefit by improve
customer retention and reducing shrinkage. The CoE offers its domain expertise i
n 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
Wipro s Supply Chain activities encompass business consulting, end-to-end business
process reengineering, product evaluation and implementation. The CoE has competencies in
Process
Assessment, Contract Management, Supplier Management, CPFR, Demand Forecasting,
Compliance (such as Sarbanes Oxley Compliance), Warehousing, Global Sourcing and
Transportation.
Merchandising & Pricing
The areas of expertise of the Merchandizing & Pricing CoE include technology, do
main and
process consulting in merchandize planning, category management, price and markd
own
management and retailer-supplier collaboration.
RFID

Wipro RFID Competence centre provides a comprehensive portfolio of EPC/RFID sol


utions and
services to meet the retailers mandate and to automate the business operations o
f CPG
companies looking beyond compliance. Wipro s 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 tool
s &
technologies to facilitate better decision making across the complete value chai
n of CPG
organizations. Wipro develops business cases and data models, leverages on in-ho
use
analytical expertise and builds best practices to measure and improve performanc
e.

. Trade Promotion Management


The TPM CoE offers a comprehensive approach for trade promotion business process
assessment, gap identification and recommendations for improvement. Wipro s servic
es
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 critic
al shop floor
systems. As part of its offerings, it also provides Analytics and Reporting solu
tions focusing on
area such as Manufacturing Intelligence and Dashboards.

CPG Value Chain


. 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 company s strengths and weaknesses. The opportunities and
threats we
found in the external analysis will be matched here and the company s core compete
ncies also
considered and will work on the improvement area. WIPRO Technologies:
Strengths:
Global R&D facility
Continuous Innovation: Wipro has global Research and develop
ment
facility. It keeps on innovating new products and services in order it retain it
s customer and to
attract new clients and shareholders in the market. Its global R & D is a very s
trong strength for
it.
Vast clientele base: Its large client base throughout the world gives strength f
or 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: Wipro s 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 C
ompany, 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 servi
ce provider in
the world; it has attained its brand value. So customers will prefer Wipro techn
ologies for its
quality.
Client satisfaction - Quality products & Concentrating on mature markets: Domest
ic market is
huge but is underdeveloped. If Wipro Technology considers capturing the remainin
g 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 Wip
ro will get
affected if one of its main sectors fails. There are other players who are espec
ially in those
same sectors who already excelled in that sector like HUL, ITC etc.
Delivery capabilities: Wipro Ltd achieved all these because its continuous assur
ed quality
providing capacity and commitment. The clients are more satisfied with Wipro.
GE, Cisco, EMC, Microsoft, Oracle and SAP: T
Alliances with top global companies
o be a
global player, a company needs to have alliance with various other companies to
provide on
time service and delivery. Certainly it s one of its main strengths. The network s
trength is very
high.
Green thoughts - Eco friendly products: Where Wipro operates, the innovation kee
ps on
gaining its own value among people. Its green thoughts like Green IT that is reu
sable 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 equipment s; Lighting solutions etc are its str
engths.

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 hig
h, 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 a
nd
Changing technology is a big threat to companies in IT industry. It will face fi
erce competition in
the areas of e- business and ASP services.
Slowdown in the banking, financial services and insurance (BFSI) sector. Other c
onglomerates
like ITC, Reliance, Aditya Birla group may enter into various industries and tak
e over the
benefits of WIPRO.
Exchange rate: This can be a threat to the company as the company is making prof
its 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 t
hreat for
IT industry companies, exactly for Wipro Technologies, which relies more on over
seas projects.

Strategy of Wipro Technologies: In this changing day to day technological enviro


nment the
blurring of geographic boundaries and the need to expand in global emerging mark
ets, business
leaders at the world s largest companies see strategic innovation as crucial to th
eir 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 sc
ope in global
market. The company has entered into the global market so now it s the biggest opp
ortunity
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 to
p 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 an
d other Clevel executives at global enterprises.

Suggestions
Adopt the Dynamic High Technology Strategy: Speed-to-market is necessary for suc
cessful
innovation. Getting a product or service swiftly out to market is a critical bus
iness innovation
tactic. Cost remains the biggest hurdle to fostering innovation. It will be alwa
ys barriers for R &
D. Issues related to the regulatory environment, and finding and retaining top t
alent. Paying
attention to best practices is the most effective way to foster innovation. Othe
r innovation
tactics included technology, data-based decision making, and customer collaborat
ion.
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 quar
ters of
companies.
Increase Global Presence: China holds the greatest opportunity, followed by Indi
a, Southeast
Asia, and Eastern Europe. More collaborations with other players; reduce depende
nce 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 t
o innovate new
solutions for clients to cut costs or reduce time to market or improve reliabili
ty.

References:

http://wiki.answers.com/Q/What_is_Wipro s_mission_and_vision#ixzz1ottCfYGM
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=PA16
5&dq=bargaining+power+for+wipro&source=bl&ots=rlezwgfQVN&sig=LJY5BIW7tS3DPu9mNub
0_HY4OW4&hl=en&sa=X&ei=_fNZT7wIc_JrAf1jsGHDA&ved=0CEUQ6AEwBA#v=onepage&q&f=falsehttp://www.answers.com/topic
/wipro-technologieshttp://www.equitymaster.com/research-it/sector-info/software/
http://www.thehindubusinessline.com/companies/article2048647.ecehttp://wipro.co.
in
http://economictimes.indiatimes.com/wipro-ltd/infocompanyhistory/companyid-12799
.cms
http://www.wipro.com/documents/resource-center/It_investments_and_business_value
.pdf