BENGALURU: Wipro CEO Thierry Delaporte is undertaking a major organisational overhaul in an effort to revive growth. Wipro’s growth is the weakest among its peers.
Delaporte is collapsing layers and trying to simplify the structure. In the latest earnings call, he spoke about fewer P&Ls, fewer teams and fewer metrics. The effort seems to be to also strengthen the market-facing side, with a great focus on each geography.
Wipro veteran and president Anand Padmanabhan, responsible for business development and strategic sales, and president Milan Rao, who heads the core transformation office – MIT (marketing, innovation and technology), are leaving the firm, sources told TOI. President and COO Bhanumurthy BM is scheduled to retire next year, after three decades with the company.
Sources said Rajan Kohli, president and head of Wipro Digital, will have an expanded scope of responsibilities – all service lines including application services and data, analytics and AI are expected to roll up to him.
When TOI contacted Wipro on the changes, a spokesperson declined to talk about specific moves, but said Wipro is committed to driving transformation, including simplifying structures and processes, to fuel their growth ambition. “Over the past four months, CEO Thierry Delaporte has underscored the importance of driving tight performance management and building a high-performance culture,” he said.
He said Wipro will also focus on a leaner organisation to increase market focus. “The key priority is our clients and the focus at this point in time is on stabilising and gaining business momentum during these difficult times. Your questions are predicated on speculation. We will detail any changes as and when those are finalised.”
Phil Fersht, CEO of US-based HfS Research, said the restructuring isn’t surprising as the services lines will benefit from greater transparency and can compete more effectively for large multi-tower deals. “With this accelerated pivot to the cloud underway, the need for integrated digital/infrastructure/process capabilities is huge, hence moving this under Kohli makes sense,” he said.
Wipro is said to be planning a sharper geography-focused approach. Sources told TOI that Wipro BFSI head Angan Guha and president and global head of consumer business unit Srini Pallia are front-runners to lead the Americas, the mainstay market for all IT firms. For Wipro, the US contributes 58.4% to revenues. NS Bala, president of energy & utilities, is expected to oversee Asia-Pacific. Wipro will name a new leader for Europe, which contributes nearly 24% to revenues, sources said.
New CEOs of Indian IT services firms in recent times have all made significant changes. Salil Parekh did it in Infosys, Brian Humphries has made dramatic changes at Cognizant. Some of these have been driven by the needs of the new digital-first economy.
Delaporte has extensively talked about reducing complexity. “I usually find beauty in simplicity. In terms of model, what is critical is that you have a model that is centred around the client… What you need as an organisation is to be able to mobilise all forces of an organization for the benefit of one client. So fewer P&Ls, fewer teams, fewer metrics, we do not need hundreds of KPIs to follow our operations,” he said in the earnings call.
Wipro has seen multiple organisational overhauls over the years. How much of an impact Delaporte’s will have remains to be seen.
Source From : Times Of India