WIPRO

WIPRO is one of the largest IT services companies in India. Established in 1980 as subsidiary of WIPRO limited .WIPRO was initially set up in 1945 with main product of producing sunflower Vanaspati Oil and different soaps. At that time Company was called Western India Vegetable Products limited with representative offices in Maharashtra and Madhyapardhesh states of India. During 1970s and 1980s it shifted its focus and begin to look into business opportunities in IT and computing industry which was at nascent stages in India at that time. WIPRO was the first company which marketed the first indigenous homemade PC from India in 1975. In 1966 Azim Premji, still the majority shareholder in WIPRO, took over as the chairman of the company at the age of 21 and with the passage of time transformed it into one of the finest and largest IT outsourcing services provider of the world. It is now considered the world's largest independent R&D service provider. It offers different technology driven services all over the globe with 46 development centers. It has dedicated development centers and offices across India, Europe, North America, Latin America and Asia Pacific. Azim Premji is still the Chairman of the WIPRO along with other top class professionals heading different wings of the business. Wipro Technologies has over 300 customers across U.S., Europe and Japan including 50 of the Fortune 500 companies. Some of its customers are Nortel, Boeing, BP, Cisco, Ericsson, IBM, Microsoft, Prudential, Seagate, Sony, Win driver and ToshibaIt

Slowdown of 2008
Wipro has put a cap on its campus recruitment at 8,000 in this fiscal, while it had taken onboard fewer among those who were selected from the engineering colleges during 2007-08. Wipro, the third biggest IT service provider in the country, had made job offers to 13,500 engineering students during the last fiscal. According to newyork times the wipros result fails to match the expectations with just 11% rise in quarterly profit in year 2008 and on the other hand the Tata Consultancy with 20.5 percent rise in quarterly profit and Infosys posted a 25 percent rise and raised its full-year guidance.

Shares in Wipro rose 14.3 percent in the December quarter, outperforming a 2.1 percent fall in the software services sector index, but lagging a 17 percent rise in the main Mumbai index.

Gross profit ratio with slowdown in 2008:

Mar ' 08 Gross Profit 14240.5

Mar ' 07 11674.4

Mar ' 06 7838.75

Mar ' 05 5489.61

Mar ' 04 3873.99

sales

17,492.60

13683.9

10227.12

7233.16

5134.89

GP Ratio

81.40871

85.31486

76.6467

75.89504

75.444459

Net profit ratio: Mar ' 08 sales net profit 17,492.60 3,715.60 Mar ' 07 13683.9 3254.5 Mar ' 06 10227.12 2483.9 Mar ' 05 7233.16 1855.25 Mar ' 04 5134.89 1142.45

Net Profit Ratio 21.240982

23.78342

24.28738

25.64923

22.248773

Going global:
the company went global in 1992 with IT service division
The company has acquired numerous companies to gain foothold in the different geographies. These acquisitions have helped the company to penetrate further in the market and develop domain expertise in the desired sector Its acquisition strategy is guided by three factors: Strengthening the domain expertise Adding new service line Expanding geographical reach The company is also planning to ramp-up its BPO operations in Europe Challenges: As boundaries vanish regional behavior diminishes, requiring offerings tailored to appeal to local customers rather than an artificial collections of users .As the system in India is evolving and Wipro going through various phases of growth has embraced a global business model beyond the low-cost advantage to incorporate building greater industry expertise and delivery of complex solutions. The global model complements the low-cost products and services model by expanding and building sophisticated operations in North America and Europe. To manage this global presence, Wipro has realized that it needs leaders who are effective across boundaries with a strong people process. An excellent example of using reverse positioning strategy for building a global model is it's strategy of 'reverse off-shoring' a new trend that is emerging by doing some offshoring of their own, in the U.S. Wipro Technologies has opened a global software development center in Atlanta, where it will work with the University System of Georgia to educate and train nearly 500 employees. Dr. A.L. Rao, former COO & currently Chief Advisor at Wipro, said that the new center will enable Wipro to provide localized and closer-to-customer service for its expanding technology services in the Americas. As the industry is evolving, Wipro is truly aligning its strategic growth with operational, tactical and human capital initiatives. Rather than the traditional process focused on evaluating the jobs people are doing today, Wipro is streamlining its future leaders to handle the jobs of tomorrow. As part of Wipro's global expansion, they are upgrading their capabilities to become a global player. The primary challenge is to expand beyond India's borders by building worldwide networks capable of providing advanced servicesboth in distant, low-cost locations and in the customer's home country. Such global reach will enable clients to transfer operations to the appropriate offshore location quickly and smoothlya crucial factor for success.

swot Strengths Weaknesses

Skilled manpower Multi domestic market philosophy Research and Development Low cost advantage

Not a proactive company Small player in global market Limited domain Clients not trusting the capabilities of Indian Software Companies.

Opportunities

Threats

Huge global market Huge potential in domestic market

Competition by Indian companies in domestic market Presence of big companies in global market Exchange rate

pest
Political Factors Economic Factors

Liberalization Support of Government policies towards free trade

Increased foreign investment Change in policies Exchange rate

Social Factors

Technological Factors

Immense intellectual Capital

Easy access to various business clients Comfort to global customers and suppliers

By Sanjay singh gusain Roll no-2010116 Sec-b