IT major Wipro has encountered challenges in its ongoing transformation efforts due to challenging macroeconomic conditions. Thierry Delaporte, the CEO spearheading this journey, said he remains steadfast in his belief that occasional quarters where Wipro lags behind its competitors will not derail the long-term trajectory of the transformation journey, and it will alter the course for the better in the long run.
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“Wipro has been executing the programme ever since it began, we haven’t deviated our focus at all. Our objective is to transform while we deliver and perform, But, at the same time to not trade the short term for the long term, which is a difficult balance to find,” Delaporte told businessline in Bengaluru in a conversation conducted before Wipro’s Q2 results.
Q2 profit down
In Q2, Wipro reported a sequential profit decline of 7.5 per cent at ₹2,667.3 crore, and flat on YoY basis. Revenue from operations stood at ₹22,515.9 crore, a decline of 1.38 per cent sequentially and flat on YoY basis. It also trimmed its sequential guidance to -3.5 to -1.5 per cent from -2 to 1 per cent in Q1.
The company has reflected on its strengths and weaknesses, and established a deep transformation programme, and has been transforming on multiple fronts. The CEO said that Wipro is changing its positioning to being a partner rather than an IT resources provider. It has also organised the business to focus on key strategic markets, built and invested in operating to improve efficiency, made acquisitions, and upgraded the talent pool.
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Delaporte said the transformation programme has changed the clienteles’ perception of Wipro being a low-cost provider and considering it for complex transformation deals. The company is now engaging in strategic thinking with clients and leading projects. It has also changed the game with hyperscalers such as SAP, Microsoft, Amazon and Google, with Wipro being seen as a partner and driving a higher impact than it did years ago.
However, there is still a long way to go for Wipro Delaporte opines, “Wipro is progressing and taking steps in the right direction. Given that it is a massive organisation the transformation wouldn’t happen overnight as it is not just superficial but deep. We remain ambitious, persistent, resilient, and patient and are growing stronger by the day.”
On acquisition move
Addressing the concerns about all of the acquisitions not immediately being positively accretive for the company, he said the acquisitions of Capco and Rizing have helped transform Wipro’s position in addressable markets and clientele, because of the talent recognition they bring in.
“For sure at the moment with weakness in the banking sector and a slowdown in consulting business, the performance is not as good as before. But that’s okay because acquisitions cannot be tactical, they are strategic and are here to transform our position in a market in the long run,” Dealporte said.
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Published on October 22, 2023
