Globalization strategy of wipro

GLOBALISATION STRATEGY OF

WIPRO COMPANY

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Globalization strategy of wipro A PROJECT ON “INDIAN COMPANIES GOING GLOBAL” UNDERTAKEN AT

WIPRO COMPANY LTD
Submitted In the Partial Fulfillment for the Award of the Degree
BACHELOR OF MANAGEMENT STUDIES Of

Under the guidance of EMIEL ALEX CEREJO BY PROF.VIKRAM TRIVADI.

St. Gonsalo Garcia College of Arts and Commerce.
Est.1984. behind vasai cricket ground, vasai(w), dist.thane-401201.

Phone: 0250-2326469/0250-2321640, website: ggcollege.co.cc

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Globalization strategy of wipro

ST. GONSALO GARCIA COLLEGE OF ARTS AND COMMERCE.

CERTIFICATE
This is to certify that EMIEL ALEX CEREJO

Have satisfactorily completed the project entitled ―GLOBALISATION STRATEGY OF WIPRO COMPANY LTD‖ In partial fulfilment of the degree of bachelor in management studies in the academic year 2011-2012. The information submitted is true and original to the best of my knowledge.

(Fr. Solomon Rodriguez) Signature of the Principal

(Prof.Vikram Trivadi.) Signature of project guide

(Prof. Hycintha Andrades) Signature of the coordinator

Signature of External examiner

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Globalization strategy of wipro

ACKNOWLEDGEMENT
We are over helmed in all humbleness and gratefulness to acknowledge our depth to all those who have helped us to put these ideas, well above the level of simplicity and into something concrete.

We are very thankful to our guide PROF. VIKRAM TRIVEDI for his valuable help. She was always there to show us the right when w e needed his help. With the help of his valuable suggestion, guidance and encouragement, we were able to perform this project work.

We would also like to thank our colleagues, who often helped and gave us support at critical junctures during the making to this project.

Last but not the least we would like to thank our family members who are our back bone, without whose support we would ever be able to complete this project.

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Globalization strategy of wipro

DECLARATION.
I Emiel Alex Cerejo, student of St. Gonsalo Garcia College, Vasai hereby State that the project dissertation entitles “GLOBALISATION STRATEGY OF WIPRO COMPANY LTD,‖ is done by me as my T.Y B.M. Semester 6 project in the year 2011-2012, this project is authentic and original to the best of my knowledge.

Place: Vasai Date:

(EMIEL CEREJO) Signature of the student.

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Page 6 .Globalization strategy of wipro ABSTRACT The transformation of present economy from a manufacturing economy to a primarily service economy has increased the importance of knowledge in job performance. motivate and develop employees. employee mobility has increased . With firms competing for skilled workers. The role and responsibilities of HRM have become more significant with an increase in the number of knowledge workers. inter-firm competition. organizations have to develop new strategies to attract.Therefore. and so0cietal and business trends. retain. High demand for knowledge workers coupled with their limited availability in the work force has created a 'war for talent' among organizations. changes in technology. As people become the most valuable asset of a firm. there has emerged a new class of highly-skilled knowledge workers.

4 F I N A NC I A L S T AT I S TI C S . . 4. A N A L YS I S . I N TR OD UC T I ON 1 .Globalization strategy of wipro INDEX C H AP T ER NO.3 F I N A NC I A L A N A LY S I S .4 FUTURE ROAD MAP OF WIPRO.1 WIPRO‘S STRATEGY TO BECOME GLOBAL. 5. .3 E UR OP E AN M A R KE T P R E S P EC TI V E .2 ROAD MAP OF IT.2 S TR AT E GI C A LL I A NC E S . 3 .1 S WO T AN AL Y S I S . 5.3 BCG MATRIX FOR WIPRO. 2 . 3 . 1 . 6.2 C O M P A NY‘ S O V ER VI E W. T I TTL E PAGE NO. 4 .1 I N T R O D UC T I O N. Page 7 3. 3 . WIPRO‘S STRATEGY TO BECOME GLOBAL. 1 . 4 . 3 .2 C OM P AR A TI V E A N A LY S I S .2 P OS I TI O NI N G F O R G L OB AL S TR AT E GY .1 WI P R O ‘ S S B U 2 . WI P R O ‘ S S B U 2 . 5. 2.3 G L OB A L I T I ND US T R Y O V ER VI E W . 5 .1 R O A D M AP P I N G 5. 1. ROAD MAP.

Page 8 . AP P EN D I C ES 6 .1 S UG G ES T I O N A N D R E C OM M E N DA TI O NS .Globalization strategy of wipro C O NC LU S I ON 7.2 B I B LI O GR AP H Y . 6 .

Globalization strategy of wipro CHAPTER. Organizations are no longer governed by the business. changes in the economic. societal and work-force trends. Page 9 . Organizations in the 'services era'. Even the environment within which firms conduct business today is very different and much more complex and dynamic when compared to the environment fifteen years ago. People create 'intellectual capital' and are therefore. such as software. Thus. the service firms produce 'ideas'. social and cultural environments have brought about a transformation in the HR function and the roles and responsibilities of HR professionals. and from the machine age to the information age has been accompanied by many transformations.1 INTRODUCTION 1.  The changing nature of the employment relationship.  Demographic. business. the most valuable asset of a firm. the environmental changes in countries other than the home country of a firm affect business decision and the performance of firms. As the world becomes one global playing field. Firms no longer compete or operate nationally only. financial services.  The changing nature of work. Some of the significant environmental trends and changes faced by HR managers that pose major challenges are as follows:  Trends in the business environment. and biotechnology firms. depend on 'intellectual capital'. legal and political environment of their own nations only. Rather than producing goods. Several societal and global phenomena have challenged the management of human resources. The shift from a manufacturing economy to a services economy from production of goods to production of ideas.1 INTRODUCTION.

or BPO. and by the specific practice specialization or skill set that the client requires. Wipro is a global IT services company. India and AsiaPac IT Services and Products and Consumer Care and Lighting. 1956. technology infrastructure outsourcing. development. Wipro's offerings include: Availability Services. System Integration.Globalization strategy of wipro 1. The Company's service offerings in BPO services include customer interaction services. Forrester and other research and advisory firms. re-engineering and maintenance. software solutions. or the Companies Act. It has been acknowledged as an offshore provider of technology services by Gartner. Europe and Japan. 1956. IT consulting. package implementation. The range of its services includes IT consulting. finance and accounting services and process improvement services for repetitive processes. The market for IT services is highly competitive and rapidly changing.2 COMPANY OVERVIEW. custom application design. Infrastructure Management and Total Outsourcing and Technology Support Services. Its suite of services and products consists of the following: Technology Products and Technology integration and management services and outsourcing services. Global IT Services and Products segment provides IT services to customers in the Americas. Wipro Limited was incorporated in 1945 as Western India Vegetable Products Limited under the Indian Companies Act. VII of 1913. Wipro's sales teams are organized in three ways: by the vertical market segment of the client's business. Asia-Pacific and the Middle East region. India and AsiaPac IT Services and Products segment focuses primarily on meeting the IT products and services requirements of companies in India. BPO services and research and development services in the areas of hardware and software design. services and research and development services in the areas of hardware and software design to companies worldwide. systems integration. Page 10 . Wipro has three principal business segments: Global IT Services and Products. Wipro provides a comprehensive range of IT services. It is deemed to be registered under the Companies Act. business process outsourcing. The Company combines business knowledge and industry expertise of its domain specialists and the technical knowledge and implementation skills of its delivery team in the development centers located in India and around the world. which is now superseded by the Companies Act. to develop and integrate solutions which enables its clients to leverage IT for achieving their business objectives. by the geographic region in which the client is located.

such as vegetable oils. Wipro relies on a combination of patent. Wipro Technologies is a part of Wipro Limited (NYSE:WIT) and is a leading global provider of high-end IT solutions. With over 10000 consultants Wipro integrates people processes and technologies to deliver innovative solutions that enable implementation of product development strategies efficiently and cost-effectively. and financial services. and Japan. Lehman Brothers. including GM. Page 11 . As of March 31. trademark and design laws. trade secrets. Thames Water. Products in this segment includes: Soaps and toiletries. Wipro Technologies achieved $617 million in revenue for the fiscal year ending March 31. medical equipment products. Regulation of its business by the Indian Government affects Company's business in several ways.Globalization strategy of wipro Consumer care and lighting business segment focuses on niche profitable market segments and has historically generated cash to support the growth of its other business segments. Sony. Nike. NYSE. copyright. Wipro Technologies provides end-to-end IT deployment solutions to suit the specific business needs of large enterprises and small and medium. Wipro Technologies makes up around 67% of the company‘s total revenue and is Wipro‘s fastest-growing business.2 billion in revenue for FY04. The primary raw materials for many of its soap and hydrogenated oil products are agricultural commodities. and Nortel. a diversified company with the principal line of business of IT and consumer products. Wipro Technologies has emerged as the second-largest software exporter from India and has a high-powered client base.500 employees.700 employees. Wipro had over 53. 2003. Weyerhaeuser. which had $1. also has other interests in fluid power. The IT solutions provided include application development services to corporate enterprises and product engineering services to technology companies. confidentiality procedures and contractual provisions to protect its intellectual property. Western Europe. 2006. which has access to 2 million retail outlets throughout the country.sized enterprises in the United States. The Company sells and markets its consumer care products primarily through distribution network in India. and has over 18. Wipro Limited. Lucent Technologies. Wipro Technologies is the global IT services business of Wipro Limited. Lighting and Hydrogenated cooking oils. lighting.

It is providing comprehensive IT solutions and services (including Systems Integration. When India opened its economy in 1990. Premji acknowledged that Wipro could not compete with PC imports. and scanners in India. Wipro was the leading manufacturer of personal computers. and application development and maintenance solutions.on average about 40% cheaper -. They are cheaper -. Today. Wipro‘s unique value proposition is further delivered through its pioneering Offshore Outsourcing Model and stringent quality processes of SEI and Six Sigma. network integration solutions. At present. The vision for Wipro's Global Command Center is to offer services based on world-class infrastructure. But he had his R&D lab. development and implementation) to corporations globally. current chairman of Wipro. The elder Premji died suddenly in 1966. Wipro‘s engineers designed semiconductors for Texas Instruments. his father founded the Western India Vegetable Products Company to manufacture and distribute cooking oils.than comparable American companies. with a fortune estimated at $6 billion. Wipro's revenue has grown by an average of 26% a year while profits have grown by 69%. Package Implementation. is by far the nation's wealthiest individual. (He finished his electrical engineering degree in 1999). Then they started tinkering with software. printers. Within a few years. and supply chain management [SCM]) a solution. packaged applications (such as enterprise resource planning [ERP]. it is India's second-biggest exporter of software services. phones for Nokia. thus Premji had to cut short his studies at Stanford to take over the family business. software Application Development and Maintenance) and Research & Development Services (hardware and software design. In 1946." Page 12 . proven process-oriented service operations that are backed by principals to ensure the world's best way of delivering IT infrastructure management solution.Globalization strategy of wipro It offers systems integration solutions. And routers for Nortel. In the early 1980s. the SEI-CMM Level 5. filled with some of India's best talent. and switches Azim Premji. industry expert skills. Since 1997. and business process outsourcing (BPO) services. Wipro started up an R&D lab. customer relationship management [CRM]. ecommerce solutions. Wipro is also the first IT services company in the world to achieve the highest level of quality certification. He diversified into personal-care products and then into light bulbs. Wipro is the first PCMM Level 5 and SEI CMMi Level 5 certified IT Services Company globally. IS Outsourcing. IS outsourcing services.

industry expert skills. proven process-oriented service operations that are backed by principals to ensure the world's best way of delivering IT infrastructure management solution. value for money solutions.Globalization strategy of wipro • Vision : To offer services based on world-class infrastructure. integrity. Innovation drives us Page 13 .― • • Mission: "To serve customers with integrity through innovative. by applying thought day after day" Values: Human values .

In the process.450 crores in 1994-95 to about Rs. representing almost 40 percent of global spending. Between 2000 and 2005. the fastest growing industry of the present era. given that many countries began the millennium with a very small installed base of information technology. has achieved a compound annual growth rate of 4 percent. Information technology (IT) refers to the collection of products and services that turn data into useful. is also one of the world‘s largest per capita ICT spending nations. ICT spending into context.3 GLOBAL IT INDUSTRY OVERVIEW.D. Even Asian countries like China. member nations of the G-8 experienced CAGR of 4.13 trillion in 2005. At $3. accessible information. The information technology industry has several major facets: computer hardware. social-closeness and contributed to the overall growth process of the whole world.S. including the Internet. compared to 6. 64. to almost $1.59% and 2. the first two in the area of hardware and the latter in the area of software. spending on ICT has increased almost 21 percent since 2000. Given the convergence of this technology.Globalization strategy of wipro 1. hand held devices. Page 14 . The U.S. meaningful. territorial and manmade barriers. U. software and services are also included in the definition. however. has not only captured the imagination of the people but also contributed to foster the pace of globalization and bringing together humanity as has never been before by breaking geographical.800. growth respectively in the corresponding periods. telecommunications hardware. ICT related exports have become the largest export item of India surpassing a large number of traditional products and services including dynamic ones. To put U. is the world leader in information and communications technology (ICT) products and services. the U.S.87% to G. Often. Within a short span. 5.3 percent for all global economies.S. Many countries have plunged into the arena to reap benefits as per their advantages. intelligent machines and other equipment. The Information Technology Sector has grown in size from Rs.200 crores in 2001-02 contributing 0. clear distinctions between ―information technology‖ and ―telecommunications‖ are exceedingly difficult.5 percent for the same years. Information Communication Technology (ICT).S. ICT in the U. This comparison is somewhat misleading.P. Taiwan and India have created a niche for themselves. software and services. The business community has responded the Information Technology Industry is the fastest growing segment of the Indian economy. it has generated economic opportunities.

60 3.5% 2. The NASSCOM review paper also indicates that the Internet subscribers base will grow from 5.9% 17. in crores 17336 3355 1021 900 540 425 360 340 Percentage 61.3%and 57.20 The NASSCOM estimates the global market and the opportunity for Indian Exports to a level of US $700 billion and India's exports form about 5% of the global market by 2005.20 1. 33.90 1. 5450 crore to 2001-02 Rs.3%  Hardware peripherals and networking 48.322 persons in 2006.84 3.376 persons in 2001 to 56.27 1. 11.Globalization strategy of wipro The composition of Hardware and Software exports is estimated as follows:  Description 1994-95 Rs.50 1. 64200 crore  Software and Service Exports 28.4% 22. Page 15 .4% respectively  Domestic Software and Services 17.15 11.9% The country wise Indian Software Exports in 2000-01 was as follows: Country USA UK Japan Germany Singapore Canada Netherlands Switzerland Rs.3%  Training 5.

Its PBIT grew by 48 per cent to Rs 135 million. manufacturing and pharmaceutical companies. Page 16 . data servers and offers a range of technology services. With state-of-the-art manufacturing facilities and extensive product development and testing facilities. solutions and products division of Wipro. Wipro Lighting caters to both institutional and retail consumers. Sun Hydraulics and Teijin Seiki range of hydraulic products in India. Wipro Infotech India:Wipro Infotech is the IT services.70 billion. Kawasaki. Wipro Infrastructure Engineering has emerged leader in the hydraulic cylinders and truck tipping systems market in India. the company‘s middle east and Asia Pacific IT services and products business. Wipro Infotech is one of the leading manufacturers of computer hardware and a provider of systems integration services in India. recorded revenues of Rs 2.1 WIPRO’s STRATEGIC BUSINESS UNITS (SBU’S):Wipro Infrastructure Engineering:Wipro Infrastructure Engineering offers world-class hydraulic cylinders and truck hydraulic components and represents the Kayaba. lamps and accessories. The company manufactures a popular line of desktops. Wipro infotech. offering lighting solutions across various application areas such as commercial lighting for modern work spaces.2 WIPRO’s STRATEGIC BUSINESS UNITS (SBU’S) 2. Wipro infotech accounted for 15 per cent of revenue and three per cent of PBIT for the quarter ending June 30. notebook PCs. It operates in the geographies of Asia-Pacific and the Middle-East. 2004. Wipro Lighting:– Vision: innovative range of cleanroom luminaries. an increase of 68 per cent over the same period last year. clean & pure Wipro Lighting manufactures and markets the Wipro brand of luminaires.Globalization strategy of wipro CHAPTER. designer petrol pumps and outdoor architecture.

Wipro has 40+ ‗Centers of Excellence‘ that create solutions around specific needs of industries. technology and process solutions on a global delivery platform. And there are no pauses. President of Wipro's Consumer Care and Lighting division. Wipro Technologies is a global services provider delivering technology-driven business solutions that meet the strategic objectives of our clients.Globalization strategy of wipro Wipro consumer care Products:At WIPRO. Wipro is the World's first CMMi Level 5 certified software services company and the first outside USA to receive the IEEE Software Process Award Page 17 . made news recently with its aggressive moves. the consumer care and lighting division. Wipro delivers unmatched business value to customers through a combination of process excellence. quality frameworks and service delivery innovation. is betting on further acquisitions to help the business leapfrog to new highs. which precedes the mainstay IT services. as Vineet Agrawal.1 provider of integrated business. Wipro Technologies:Wipro Technologies is the No. It gobbled up Hindustan Lever's dormant brand Glucovita in the glucose drinks segment and then upstaged Marico Industries to take up the distribution of Chandrika soap.

Wipro helps in setting up quality frame works that deliver measurable value for the businesses concerned. and Germany.Wipro provides quality business performance and helps its clients to leverage the strengths of IT to get the most from their business processes. is a leading provider of design and engineering services to telecom companies.By deploying six sigma methodology and programs and process Improvement tools. Wipro‘s R&D arm. architects and builds robust Solutions tailormade for organizations.Wipro covers from package and technology assessment to largescale systems integration. Wipro on Thursday said it has acquired the Finland-based Saraware Oy in an all cash deal worth $32 million. Wipro sees that changing by 2010. Wipro Technologies said "Over the past few months through acquisitions in Europe we have added local work force in Portugal . Tata Consultancy Services (TCS).  Process consulting. the product and engineering solutions (PES) division. France. is more than twice as large as that of its closest competitor. when both would be in equal proportion. Saraware gives us a local work-force in the Nordic region through a presence in Finland. Close to 50% of global market share in wireless infrastructure domain is dominated by major players in the Nordic belt. Austria.  Quality consulting. Saraware has nearly 200 specialists in these domains based out of Finland.2 STRATEGIC ALLIANCES. In its sixth acquisition in seven months. Page 18 . Just a week ago. Wipro took over Enabler. an EU-based retail service provider for $53 million. It generates 35% of its turnover and 60% comes from software services. This acquisition adds expert domain competencies in the areas of radio networks and secure mobile platforms. India‘s largest software exporter. a 21-year-old company.Wipro provides process improvements and implementation of packaged applications to their clients through this.  Technology consulting.Globalization strategy of wipro 2. Sudip Nandy. Saraware. Wipro’s expertise in the domain of Consulting: Business consulting. and envisions. This is in line with our drive to transform ourselves into a truly global company with global workforce. Chief strategy officer.

 High adoption of telecom technology.Globalization strategy of wipro 2. Page 19 . (3) Demographic profile:  Ageing work force  Decline in computer science graduates in Western Europe. (4) Customer uniqueness:  More detailed and demanding on service delivery.  High cultural and linguistic diversity.  IT groups focusing more on business value and Return on Investment. (2) Regulated market:  European Union and country-level regulations.3 European market perspective: (for Wipro) (1) Fragmented market:  Distinct streams of customer behavior across Europe.  Global Delivery Model adoption is lower.

‗‗All the investments we have done so far towards enhancing our service lines have started yielding results.1 Project Based Services Infrastructure Related Outsourcing 26.3 10.3 65. Wipro gears up for mega global deals: Tech major Wipro seems to have enhanced significantly its delivery capabilities through its series of acquisitions.9 11.8 BPO Application Outsourcing       Improving IT efficiency continues to be a priority.7 22.4 13.1 24. in the range of $250 to $500 million.6 69. we currently have a pipeline of several $100 million deals and many mega deals of international size. The company says it is now ready to venture into deep waters to contest for mega deals.6 24. Wipro Infotech. We started experiencing this trend in the domestic market a couple of quarters ago by winning work orders from HDFC and Dena Bank worth $80 mn and $70 mn respectively.9 14. Suresh Vasvani. Outsourcing contracts getting shorter. with top global players like IBM. Infrastructure consolidation continues to be a focus area. building multiple domain expertise and readying a bouquet of service offerings. told The Times of India. Page 20 .2 20. Preference towards ERP packages vis-à-vis custom built applications. Regulatory changes adding to IT budgets. president.9 17.3 59.3 56. Accenture and EDS.3 16.2 25. Increasing interest in Integrated BPO+IT solutions.9 18.5 25.Globalization strategy of wipro IT Market statistics: Projected IT Services Spending (Bn Euros) 140 120 100 80 60 40 20 0 2006 2007 2008 2009 2010 24. This has given us immense strategic edge. As a result.2 62.

consulting . and suggest strategies for profitability and cost reduction. infrastructure management. "Customers are looking at companies that can provide integrated services. Page 21 . software applications. systems integration. Wipro has strengthened its consulting business that has 250 vertical-specific consultants who evaluate clients‘ businesses.Globalization strategy of wipro Most of these mega deals are going to be in the areas of offshoring.". data centre. infrastructure management and business process outsourcing. total outsourcing proposition strategy has been effective in the last six quarters. It has brought all its services.‖ Wipro‘s integrated services approach seems to have worked well for it. BPO services and PC business under a single package.

 Good scope for expanding business worldwide(liberalization.  Innovations of latest Technologies. JP Morgan.Opportunities: IT Sector is booming. ABN Amro. consulting and business process outsourcing business. Franklin Templeton.  Small size of Balance sheet to make a deal and acquire new profitable companies as compared to TCS and Infosys. Privatization. 2).3 ANALYSIS 3.  Lack of focus on Consumer durables and Engineering products.Weaknesses: High reliance of US and European markets.1 SWOT ANALYSIS OF WIPRO IN THE CURRENT SCENARIO.  Global Diversified Company with a strong R&D division twice as large as TCS and Infosys. 1). Compaq and Seagate  Operating profit margins at 32. and 300 others. GM.3% lower than its peers.Globalization strategy of wipro CHAPTER. Boeing and GE.  Global delivery model: Market leader in Offshore. Page 22 . 3).Strengths: Large Employee Base: (42000 as on 2005-06 with low attrition rate)  Large number of Blue-chip Clients like Nortel. Nike. Globalization.  Number of SEZ and STP‘s are increasing.  Global partner with GM.

However.  Unrelated diversification of other multinational companies such as TATA Elxi. it would pose tough times for the Indian companies. at present. there have been several bouts of volatility in between this rally and the rapid rise witnessed in the month of November raises some serious questions regarding the sustainability of this rally. into high-end domains like telecom and banking services. While. While strengths and weaknesses of the Indian software sector have been an outcome of the past decisions and initiatives. this presents an opportunity for Indian software companies to increase their penetration into newer markets and newer domains. most of the managements of Indian software companies are of the belief that it would be rather difficult for these global giants to completely replicate the Indian model owing to the changes that they would have to make in their revenue and cost structures. have reengineered their business models and widened their service base through moving up the software value chain. TITAN. In this initiative of moving up the value chain. even the stock markets have rewarded them as seen by the rally that these stocks have been witnessing since their April 2003 lows. L&T InfoTech. the imperative for the former (Indian software companies) lies in moving rapidly up the software value chain. Indian software companies. Not only have these changes helped these companies in improving their financial performance. as and when these MNCs are successful in the replication process. IBM and Accenture. Further.8%). While India‘s share in the global technology marketplace continues to remain miniscule (at 1. what lies ahead is well captured in the opportunities and threats. the most serious being the ‗successful‘ replication of the Indian offshoring model by the global tech biggies like EDS. as more global companies are looking towards outsourcing their tasks to Indian software companies with a view of becoming more cost competitive.Globalization strategy of wipro 4). Indian companies are then likely to benefit from the scale advantages of the selling and marketing expenditure that have been made in the past. in retaliation to increasing pressure due to global economic slowdown. Page 23 . Finally.  Emerging Small IT companies.Threats: Increase in English speaking people in china. Talking about probable threats to the fortunes of these Indian tech companies.

The main concern lies in the fact that nothing so ‘revolutionary‘ seems to be happening with the software companies that vouch for their prices rising so rapidly.Globalization strategy of wipro 3. investors need to practice utmost caution from rallies of these kinds as they take along with them even those companies that have destroyed capital in the past. fallacies resulting from such temptations in the past must have made investors more wise and introspective in their investment decisions.2 COMPARATIVE ANALYSIS. It is clear that valuation (based on our FY04 earnings estimates) for most of the Indian software majors now look stretched. And this is a result of the ‗irrational exuberance‘ displayed by market players on stocks of these companies time and again. While the overall environment certainly has shown signs of improvement. Page 24 . Temptations are definitely very hard to suppress but we believe.

results showed a negative growth vis-a-vis the previous quarter. However. driven by growth in services and solutions business by 24 per cent year-on-year. Total revenues in Q4 last year was Rs 938 crore and PAT was Rs 217 crore. Wipro Infotech.of going after the large $ 100-billion systems integration and technology infrastructure market competing with global players. and 35 per cent in Q4 last year. Wipro's R&D Services contributed 52 per cent of the Global IT services revenue. was contributed by Technology Infrastructure Services. and strategies that seem to have paid off. WIPRO Ltd's net profits grew by 97 per cent over the corresponding quarter last year to Rs 214 crore. Revenues from the Global IT arm were Rs 521 crore for the quarter and PBIT was Rs 190 crore.3 FINANCIAL ANALYSIS OF WIPRO. Wipro Technologies also contributed 93 per cent of the PBIT. the business won two marquee customers and generated good interest among prospect base. Continuing its derisking strategy. PBIT grew by 26 per cent to Rs 8 crore.8 per cent for the quarter ended June 2000 to 5 per cent for the three-month period ended June 2001. accounted for 20 per cent of the revenues and 4 per cent of the PBIT. Page 25 . Operating margin expanded from 3. entering the APAC and Middle East regions through Wipro Infotech and following the Six Sigma processes and eprocurement as strategies to cut costs.4 per cent and onsite realisations of 2.6 per cent. Enterprise Solutions contributed 42 per cent and the remaining 6 per cent. In its first quarter of operations in Asia Pacific and the Middle East. Wipro Technologies. In the quarter. Operating margins went up to 36 per cent for the first quarter this year as against from 31 per cent in Q1 ended June 2000.Globalization strategy of wipro 3. has shown a growth in offshore realisations of 3. The company has been following a three-pronged strategy -. Revenues grew to Rs 798 crore. a performance backed by cost cutting. which contributed a major chunk of revenues at 65 per cent. an increase of 28 per cent year-on-year. The increase was primarily due to increase in offshore realisation by 15 per cent and onsite realisation by 16 per cent. the company has brought down the percentage of its revenues from the US from 65 per cent to 60 per cent compared to the corresponding quarter last year. Europe has moved up to 33 per cent from 27 per cent and Japan is 6 per cent.

2.76 billion (Rs.2%  Global IT Services & Products added 37 new clients in the quarter  Wipro‘s India. Operating Margin was at 24.96 billion (Rs. 6. 765 Crores)  Global IT Services & Products Revenue was Rs. 696 Crores) and grew by 32% YoY. 3. a 35% increase YoY  Global IT Services & Products Profit before Interest and Tax (PBIT) was Rs.Globalization strategy of wipro For 3rd quarter ended on December 31. 28. 39. Middle East & Asia Pac business recorded 56% growth in PBIT YoY.979 Crores)  Profit After Tax (PAT) grew by 41% YoY to Rs. 7. Revenue grew 76% YoY Page 26 .79 billion (Rs.876 Crores).65 billion (Rs. 2006:  Wipro Limited Revenue increased by 45% Year on Year (YoY) to Rs.

Page 27 .Globalization strategy of wipro 3.4 FINANCIAL STATISTICS.

Globalization strategy of wipro Page 28 .

Globalization strategy of wipro Page 29 .

a financial services consultancy located in Newton. Premji's entry into the BPO (business process outsourcing) was remarkably late in coming. Enroute he has made some impressive gains: in April 2002. Today. for Rs1152mn. It is no secret that Premji would like Wipro to join IBM and Accenture in the sophisticated and lucrative tech consulting business. he bought Nerve Wire Inc. Premji's growth strategy over the past years shows a marked change from earlier patterns. growth is also through acquisitions and borrowed ideas.1 WIPRO’S STRATEGIES TO BECOME GLOBAL. Wipro won a contract to provide tech services to the Scandinavian TeliaSonera. contributing about 4% to Wipro's total revenues. Moving up the value curve is another growth strategy. helping customers design their IT systems. Today research led consulting represents 7% of Wipro's revenues. The next shot in the arm was the November 2002 acquisition of American Management Systems Inc. Past strategies:Growth has four faces: organic. diversifications and joint ventures. acquisitions. In July 2002 Wipro acquired Spectramind in a Rs4320mn deal. Page 30 .4 WIPRO’S STRATEGIES TO BECOME GLOBAL 4. Massachusetts. a Boston based 100 person energy practices. partnerships and organically. Moving towards this goal. Between 19662000. Interestingly. Wipro grew through diversification. through innovations it pioneered. and seems to be a somewhat knee-jerk reaction to slowing growth rates in his core businesses. and not labor in the lower level space of offshore coding. for Rs912mn.Globalization strategy of wipro CHAPTER. The takeover caused a few rumblings amongst analysts who felt that Wipro overpaid for India's largest non-captive call-center (GE's operations in India are estimated to be larger) but Spectramind is already a growth driver. beating world leaders like Oracle Corp on their own turf. up from zero two years ago. and there are fewer partnerships.

bringing it into direct competition with global IT consulting giants like Accenture. energy and utilities industries through its range of service offerings. The Company provides a range of enterprise solutions primarily to Fortune 1000 and Global 500 companies. It has also begun six sigma consulting in an effort to become a global six sigma leader.  Quality leadership:Wipro has been well-known for embracing cutting-edge quality standards such as six sigma. the manufacturing sector. Wipro addresses the banking and financial services segment. Wipro provides its clients customized IT solutions in the areas of enterprise IT services.Globalization strategy of wipro Recent strategies:IT Services and Products segment accounted for 69% of the Company's revenue during the fiscal year ended March 31. 2006 (fiscal 2006). Page 31 . and the retail.folio of technology services. and research and development services. Wipro Technologies is expanding its portfolio of IT services by offering high value services such as IT consulting and systems integration. The company has already added a number of new services such as package implementation. business process outsourcing and so on. The Company's enterprise solutions division accounted for 63% of its IT Services and Products revenues in fiscal 2006. technology infrastructure support services. Wipro's strategy revolves mainly around three points:  Service line expansion:Wipro will build a full port. infrastructure outsourcing (including remote network management).

The Company's service portfolio in testing covers the entire gamut of user needs from product concept to deployment. Effective as of July 1. Pursuant to the terms of this acquisition. Wipro provides offshore testing services. Wipro uses its expertise in package software to architect. subject to completion of certain closing conditions. implement and maintain client-specific solutions. Enabler. The Company also provides consulting services. a provider of business service management (BSM) solutions. across the stages of the product/application life cycle. the Company also acquired Impact India. Wipro Technologies announced yet another acquisition — Finland-based Saraware Oy. In May 2006. they must be able to develop a peer-like relationship with customers. not only on the technical side but also on teaching its engineers how to be consultants. a wireless network infrastructure provider. Page 32 . In April 2006. In December 2005. Wipro acquired empower Software Service Inc. In the same financial year. Wipro acquired BVPENTE Beteiligungsverwaltung GmbH and its subsidiaries (New Logic Technologies AG). the Company reorganized the Global IT Services and Products segment into two operating segments: IT Services and Products. The company's employees. Wipro acquired. complex projects and run them out of India. and its subsidiaries.Globalization strategy of wipro  Investing in human capital:Wipro Technologies is investing a lot in training. a Europebased retail solutions provider. 2005.. a European system-on-chip design company. persuading customers instead of just accepting direction and doing a good job of execution. The Company develops strategies and implements solutions for its clients to manage multiple sources of data for use in their decision-making processes. who several years ago were basically "code cutters". a joint venture between MasterCard International and empower Software Services Inc. In December 2005. and BPO Services. the Company acquired cMango Inc. have demonstrated the ability to take on large. Now.

Strategy for Middle East: Middle East forms a critical component of our global strategy.The Company competes with Hindustan Lever. Wipro during his visit to the region. 'Wipro is extremely committed to building a strong customer base in the Middle East and will continue to provide value to our customers through our global experience. Products offered in this market consist of GE Medical Systems products manufactured worldwide and portable ultrasound equipment manufactured in India by this joint venture for the global markets. Page 33 . Infosys. UT Limited (India). Satyam and Tata Consultancy Services. In addition. IBM Global Services. Hyundai Motor Company.5 crore) deal included upfront cash payment and debt takeover. UAE. an Indian company engaged in the business of switches and sockets. Cognizant.' Wipro Limited successfully implemented Oracle 'database migration' and 'forms upgrade' using Oracle product tools for the core exchange application at Al Ansari Exchange. This is Wipro's third acquisition this financial year.600 employees In May 2006. Middle East forms a critical component of our global strategy. Being a rapidly growing IT services market. EDS. General Electric holds 51% of the equity in the joint venture and Wipro holds 49%.' says Wipro.Globalization strategy of wipro The € 25 million (approximately Rs 147. Wipro GE Medical Systems Private Limited is a joint venture with General Electric.. the Consumer Care and Lighting segment acquired North-West Switches business from North-West Switchgear Ltd. Al Ansari Exchange had selected Wipro for this critical project to facilitate user friendliness of the application and offer scalability to support the business growth of the Exchange. President. The company has spent over Rs 400 crore on the acquisitions and added around 1. The joint venture provides customers in South Asian markets after-sales services for all GE Medical Systems products sold to them. and Siemens. Wipro competes with Accenture. Philips.' said Suresh Vaswani. understanding of various technology domains and bringing customized solutions to our customers in the region. there are earn-outs on achieving targeted financial conditions over an 18month period. Danfoss Group. Hitachi Ltd. Komatsu Ltd. General Electric.

Qatar. architecting and testing the solution in Qatar Petroleum. This 11-month project involved Wipro consultants working on designing. "Wipro is delighted to have completed these leading edge projects across the region.the desktop management tool from Altiris. The College as a part of a larger consortium had selected Wipro. Wipro started its operations in Middle East region in June 2001. Today it has built a strong customer base in Middle East. The IT major implemented the project on time and within schedule. One in Dubai Internet City handling operations in UAE. has further consolidated leadership position and has extended its commitment in the region by implementing two projects in Qatar. Successful projects like these go a long way in reiterating our commitment for delivering high levels of customer satisfaction. Qatar. In the subsequent years it expanded its operations in the region to Kingdom of Saudi Arabia. Qatar. Wipro delivers high end IT services and consulting services to its client in the Middle East region through its two regional offices. SPC and Dubai Municipality among others. Dubai Metal and Commodity Center. the company also implemented HP Open view Enterprise Management suite for College of North Atlantic in Doha. The IT major implemented HP Open View Service Desk and Altiris Client Management Suite . The company has successfully completed the Engineering Consultancy and IP Telephony testing project for Qatar Petroleum for the proposed QP Complex and also implemented an Enterprise and Desktop management suite for College of North Atlantic-Qatar campus. and the second at Al Khobar catering to Saudi Arabia and Bahrain. Wipro announced the successful completion of two projects in Qatar. Bahrain and Kuwait. the Global IT Services Company. Oman and Kuwait. We look forward to adding value to our customers' technology initiatives through our expertise in global delivery and knowledge of technology domain. Page 34 . Furthermore. Oman. Gulf Insurance Company. Sharjah Electricity and Water Authority. These tools will provide proactive management of the IT Services in College of North Atlantic thereby enabling higher level of services to the students and faculty of the college. Some of its customers in the region include-Doha Bank. Wipro had also been selected by Qatar Petroleum (QP) to provide Technology Consulting Services for their prestigious Ras Abu Aboud Development Project as a consequence of QP's objective to explore the use of convergence for the new QP complex.Globalization strategy of wipro Wipro Limited (NYSE:WIT).

It hopes to achieve this objective by identifying and developing service offerings in emerging growth areas as separate business opportunities. 2005-06. Vice-President. having interests in petrochemicals. He said this region formed a critical part of Wipro's global business strategy. internet and application service providers. business intelligence services and telecommunication. Saudi Arabia. "Wipro as a company is extremely committed to building a strong customer base in the UAE and across the region. Page 35 . Wipro had year-on-year growth of 85 per cent in APAC/Middle East region. according to Mr Rajat Mathur. It believes that these trends provide significant growth opportunities. The company has stated in its latest annual report that the markets addressed by it are undergoing rapid change due to the pace of technology development and change in business models. Speaking at the recently-concluded India-Gulf Partnership Summit in Dubai. In addition Manso Group. Wipro's strategy for future growth:Wipro. a leading India based provider of IT services. steel.‖ In 2004-05 alone. the company had a growth of 28 per cent in the Asia Pacific/Middle East region.Globalization strategy of wipro Strategy for west Asia:WIPRO sees a tremendous synergy in the Indo-Gulf markets and it aims to further strengthen this relationship in the years to come. has drawn up its strategy to become a world leader in the field. Mr Mathur said that West Asia and the Gulf were moving into higher value services as IT was increasingly relied upon to drive business momentum. such as infrastructure support services. and International Operations. In Q2 ending September 2005-06. We are confident that our efforts in bringing best practices will spur healthy growth of ICT industry in UAE. a diversified business group in KSA. laminates and transportation business has chosen Wipro to Implement Enterprise Application Platform .SAP Enterprise Version. Arab National Bank. selected Wipro as its partner for managing the data centre operations of the `Disaster Recovery Centre'. Wipro expects to significantly grow its global IT services business and the percentage of its total revenues and profits contributed by this business over the next few years. In Q2.

Also. The goal is to make every new client account earn over $1 million in annual revenues within twelve months. In pursuing acquisitions. In India. software and networking solutions along with branded hardware products which the company hopes would enhance profitability significantly. Also the company intends to increase its share of business with existing clients by expanding its range of IT solutions and by increasing its knowledge of industry segments and individual client businesses to allow it to better understand client requirements. The focus would be on improving operating margins by increasing the revenue per IT professional by providing higher value added services. the growth plan includes offering a full service technology solution including systems integration. the company will be leveraging its experience in providing IT services in the Indian market and its access to existing clients outside India to provide global support services. support services. The intention is also to increase the number of clients through a dedicated sales team focussed on new client acquisitions and increasing its presence in Europe and Asia. Page 36 . mobile communication and the internet and high growth technologies such as embedded software. the focus would be on companies where a significant portion of their work can be moved offshore to India to leverage the company's low cost offshore delivery model and realise higher margins. The company is also planning to pursue selective acquisitions of IT service companies that would allow it to expand service offerings and acquire additional skills. This would strengthen its relationships with clients and allow the company to realise higher revenues from them. increasing the number of productised services and increasing the proportion of the company's fixed price contracts.Globalization strategy of wipro It is also planning to aggressively develop the research and development services by focussing on high growth markets such as telecommunication.

It has put through half a dozen acquisitions over the past 12 months. strong brand name recognition and expanding nationwide distribution network Wipro expects to close at least one acquisition in 2007. This is in line with Wipro's strategy of acquiring a string of companies across different verticals that either fill up their technology gaps or a ready customer base. Page 37 . The strategy is to maintain a steady growth in operating income through efficient capital utilisation.Globalization strategy of wipro Traditional business: The Company has been in the consumer care business since 1945 and the lighting business since 1992. The consumer care business has historically generated surplus cash for the company to be able to grow in other businesses.

light bulbs and fluorescent tubes. namely Wipro Technologies. Wipro has grown into a multi business multi location conglomerate. and Wipro GE Medical Systems. in conjunction with GE. In its non-IT businesses. Europe and Asia. Wipro has a significant presence in Consumer Products and in Infrastructure Engineering. Asia-Pacific and Middle-East markets. Wipro. an Austrian semiconductor design firm. Wipro InfoTech is responsible for technology operations in the Indian. The Fluid Power division develops hydraulic technologies for Indian mobile equipment manufacturers. The company has a significant presence in toiletries and lighting products and solutions. Ltd. operates through a handful of subsidiaries. In December 2005. Started as a ground nut crushing unit in 1947. Ltd. Wipro Consumer Care and Lighting focuses on niche markets and offers a mix of consumer products including soaps and toiletries. The firm has 37 offices across North America. Europe. Wipro Technologies purchased New Logic. Page 38 . produces and exports electronic medical equipment. lighting accessories and hydrogenated oil. while Wipro GE Medical Systems. It is the preferred suppliers to OEMs supplying to the growing infrastructure industry globally.2 POSITIONING WIPRO FOR GLOBAL COMPETETION. Wipro's Consumer Care and Lighting business segment accounted for 5% of its revenue in fiscal 2006. This acquisition will greatly enhance the company's hardware design arm. adding 120 semiconductor specialists and access to 25 new patent filings.Globalization strategy of wipro 4. for $56 million. value-driven engagement model and our quality leadership in every aspect of service delivery. as well as the Wipro Baby Soft line of infant and child care products. Wipro Limited is a leading provider of IT solutions for customers across Americas. Wipro Fluid Power. an adaptive. Ltd. Asia. Its umbrella brands include the Santoor and Wipro Active lines of soap and talcum powders. Wipro Consumer Care and Lighting. Wipro has grown from a India centric consumer products manufacturing company to a global company providing comprehensive service portfolio. Australia and the Middle East. The depth and width of the services that it provide is perhaps unmatched by any other company. Wipro InfoTech.

It has been targeting particular industries in Europe such as telecom and utilities. application integration. Wipro Technologies expected to generate annual revenues of US$4bn by 2004. In a vision exercise that Wipro went through in mid 2000. and research and development services. and delivery mechanisms.is relatively high compared with many other major Indian software exporters. Asia-Pacific and Middle-East markets. Mr. and provides enterprise clients with IT solutions. sabbaticals for higher studies. Paul emphasizes that the US$4bn figure was not meant to be a target but a vision that was used as a rallying cry for the entire organization to think big. Japan has also emerged as a significant market.Globalization strategy of wipro Wipro offers medical and educational assistance. including enterprise solutions. The India and Asia Pac IT Services and Products segment accounted for 16% of Wipro's revenue in fiscal 2006. Half of these revenues were to come from organic growth and the other half from acquisitions. As a result. Wipro Technologies has also been trying to diversify away from the US market. The statement also forced management to think through a number of fundamental issues such as how to successfully scale recruiting. quality systems. custom application development. In addition. The company is still far from this goal: revenues in 2001/02 amounted to US$470m. and consulting. which in 2001/02 accounted for 57% of the company's revenues. the share of Europe in revenues. However. it will be important to be able to "scale" the Wipro culture and instill Wipro values. The Company's India and Asia Pac IT Services and Products business segment. is focused on the Indian. an on-site cafeteria and transportation to its development centers. if the company is going to grow to the point where a majority of staff have been employed for less than two years. Wipro provides its domestic customers with access to its range of global IT services. IT management and infrastructure outsourcing services. Like many other Indian IT services companies. The Company's suite of services and products consists of technology products. about 36% in 2001/02. induction. technology integration. interest-free and contingency loans. which is referred to as Wipro InfoTech. package implementation and maintenance. Page 39 . Moreover.

The acquisition of the Austrian chip design firm NewLogic would strengthen Wipro's presence in Bluetooth and the wireless local area network (WLAN) space in the global market. It will position Wipro as a complete SoC solution provider to its customers. Page 40 . The NewLogic acquisition is a significant step in the plans to be the leader in the Wireless IP and RF technology space. It would also help Wipro prepare for the 3G evolution and give it access to the mobile security (public radio systems used by police) domain. Sophia Antipolis (France) and Munich (Germany). The acquisition also helps to consolidate its position as leaders in this space and more particularly provides a solid base for addressing the large market in Continental Europe. NewLogic has three design centres in Europe at Lustenau (Austria). Wipro's near-shore presence in Europe has been fortified by this acquisition. which stood at $32 billion in 2005. Acquisition would help the company create a strong footprint in Europe and enhance the local delivery capability.Globalization strategy of wipro The acquisition of Saraware would help in positioning itself in the GSM/WCDMA wireless network market.

New Logic has 10 per cent global market share each in WLAN and Bluetooth IP space. Wipro shares gained 3. WLAN and Bluetooth IP according to Gartner report of April 2005.25 per cent on Monday to close at Rs 455.80 on the BSE Page 41 .Globalization strategy of wipro Impact in the Wipro’s share price in the Indian stock market after it had bought New Logic and other foreign acquisitions in 2005: New Logic is ranked number one in wireless interfaces. With New Logic‘s buyout. Wipro said it is aiming to become number one in communication standards based semiconductor IP category in the world in three years.

particularly important if it is a new venture. and PowerPoint documents on multiple desktops. this data is maintained in a central database. innovative organizational structures.Globalization strategy of wipro CHAPTER. Because planning information is often stored in static Word. Page 42 . ‗Understanding the dynamics of competitors within an industry is critical for several reasons. it can help to assess the potential opportunities for a business enterprise. key strategic planning information often resides in different functional silos. Popularized by Motorola and Corning in the 1980's. With roadmapping software. companies are able to optimize visibility into innovation efforts across multiple business units and departments. Medtronic and Philips rely on roadmaps to dynamically connect product and technology plans across the company and strategically map them to market opportunities.5 ROAD MAPPING 5.these are just some of the profound trends affecting the way businesses work today. customer needs. providing more accurate and current data to roadmapping participants. organizations can exchange up-to-date strategic planning information about emerging technologies. and integrate information throughout the organization. allowing them to better plan for and make decisions about the future. Through the process of roadmapping.1 ROAD MAPPING. providing participants with the ability to easily access. today. Leading innovative companies use roadmaps to visualize innovation efforts across the enterprise. Excel. It can also be a critical step to better differentiate a firm from others that offer similar products and services. a far-reaching regulatory environment . First. Today. industry leaders like Honeywell. Globalization. update. share. market demands and competitive information. projects and resources. many companies are using roadmapping software to streamline the information collection process. With roadmapping software. outsourcing. Road mapping is an established technique that brings discipline and rigor to the product and technology planning process. providing a collective truth about R&D capabilities.

and help align cross-functional participants who need to stay on top of information as it dynamically changes.Globalization strategy of wipro Roadmapping software can help companies effectively discipline ad hoc innovation and planning processes. Page 43 . improve communication and collaboration throughout the planning process.

2 ROAD MAP OF IT SECTOR Page 44 .Globalization strategy of wipro 5.

3 BCG MATRIX OF WIPRO’S SBU. The strategic business units of Wipro are. Wipro infotech. Wipro infrastructure. Wipro lightening and Wipro consumer durables and Wipro Technologies.Globalization strategy of wipro 5. Page 45 .

then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. The result is large net cash consumptions. The services business contributed 32% to the total revenues and grew 49% Y-o-Y. a growth of 56% Y-o-Y. A question mark (also known as a "problem child") has the potential to gain market share and become a star. Page 46 .7 crore. while the products business grew 91%. Question marks are growing rapidly and thus consume large amounts of cash.Globalization strategy of wipro Wipro InfoTech: It falls under Question Mark. a growth of 76% Y-o-Y and a PBIT of Rs 58. Source: Europe has been one of the fastest growing markets for Wipro. Wipro Infotech‘s share of Wipro‘s PBIT was 7%. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share. The division‘s contribution to Wipro‘s total sales stood at 18% in the third quarter as against 15% in the previous two quarters. Revenues from Wipro‘s the European operations delivered 48% growth rate and contributed more than 32% to Wipro‘s IT Services revenues. and eventually a cash cow when the market growth slows. Source: Wipro Infotech had a good third quarter this fiscal. The arm recorded revenues of Rs 700. For the fiscal year 2005-06. but because they have low market shares they do not generate much cash.8 crore. If the question mark does not succeed in becoming the market leader. Wipro Technologies: It falls under Question Mark.

Page 47 . Source: Wipro's Consumer Care and Lighting division will be firing on several cylinders in the current year. C&L. Santoor.Globalization strategy of wipro Wipro consumer care & lighting: It falls under Question Mark. North West switches. Wipro's lighting division. has been catering to specialised niche segments within the institutional sector. The organised lighting industry is estimated at about Rs 500 crore. office modular furniture and CFL continues to be the growth drivers-grew 30%. such as software companies. banks and landscaping. Philips and Bajaj are among the leading players. 63%and 63% yoy respectively. When the FMCG industry as a whole has been moving forward at 4-5 percent. 28%. Continued expansion of manufacturing in Uttaranchal for both soaps and lighting product and backward integration for soaps. Wipro consumer care and lighting (WCCL)     Wipro consumer care and lighting recorded revenues of RS 2114 million a growth of 36% yoy and pbit of RS 262 million a growth of 25%yoy. and Wipro. set up in 1992. It is buoyed by the 20 percent plus top line growth achieved in two successive years (200305). the acquition we completed earlier this fiscal is showing good progress.

Win completed the acquit ion of hydrauto group AB. Wipro infrastructure engineering (WIN)     Wipro infrastructure engineering (WIN) revenues grew 42% yoy in India. Market segment we operate in are showing robust growth of 30-55%.we continues to gain market-share in all segments to win in the global market place. the performance was 20% less sequential growth. At last quarter we've grown roughly 80% year-on-year. Results of hydrator have been consolidated into Wipro limited effective November 1. Even if you look at our last quarter performance. Revenue for Page 48 . So it is a high growth business and a big growth driver for us globally as well as a big differentiator for us globally. 2006. Azim Premji addressing to the investors in AGM: The infrastructure business is a big growth driver for us. The acquition is opening up exciting opportunities the quarter from this acquisition was rs 1043 million. Source: Azim Premji addressing the analysts for the quarter ends 31st dec.Globalization strategy of wipro Wipro infrastructure engineering: It also falls under Question Mark. 2006.

Wipro can take the advantage of extending its consumer care product lines and can have joint ventures with several Branded Retail like WalMart. IT software and services industry in India accounted for 2. On a sum total. and the BPO industry is expected to grow in excess of 30% a year. And employee strength reached about 53. Global IT services business grew 33%. Big Bazaar and reliance like oranic Retail stores to sell its product and hold and continue to increase the demand for its consumer care products. Page 49 . R&D business as well as the Europe Geo reached half a billion dollar mark in this fiscal.By 2008.Wipro is implementing aggressive promotion and advertising cost so that we can predict the demand and can increase the market share of consumer cares.000 mark.626 crores. and Asia Pac business. In other terms the rise and booming of Retail sector. the India. Revenue from our combined IT business crossed two billion dollars landmark.4 per cent of the country's GDP and 16 per cent of exports in 2002-03. the Indian IT software and services industry is projected to account for 7 per cent of India's GDP and 35 per cent of total exports. . and Wipro InfoTech. Coming to the point of consumer care durables and engineering products. grew 22%. Wipro as per current financial data. Profit after tax grew 27% to reach 2067 crores. Revenue increased by 30% to reach 10. Middle East.4 Future Road Map of Wipro: The software industry is anticipated to grow at 25% a year over the next five years as per the McKenzie Nasscom report. we will grow ahead of the industry going forward. In the coming years the company will grow by more than 30% in terms of revenue and profit because of more overseas acquisitions and demand in the IT Market.000 crossing the 50.Globalization strategy of wipro 5.

Reduction in variation. By This. value for money solutions. Page 50 . Incorporate lessee learned and best practices from global automotive industry. Provides additional confidence for global sourcing. Provides global quality system approach in the supply chain for sub contractor development and consistency. integrity.          Improved product and processed quality. and increased efficiency.6 CONCLUSION. I end my project on Globalization Strategy of Wipro which gave me immense knowledge about Wipro. proven process-oriented service operations that are backed by principals to ensure the world's best way of delivering IT infrastructure management solution. Innovation drives us. To serve customers with integrity through innovative. Provides a common language for worldwide quality system requirements.Globalization strategy of wipro CHAPTER . industry expert skills. Reduction in second party audits and elimination of multiple third party recognition. by applying thought day after day" Human values. Weakness and also its goals and objective such as  To offer services based on world-class infrastructure. By this project we can clearly understand the current status of wipro it‘s Strength. waste.

china. and other emerging countries 2.1 Suggestions and Recommendations: 1. Page 51 . 4. It should strengthn the domestic market as well by taking the advantages of liberlisation and Globalisation. Establish presence in emerging markets such as Brazil. korea. Since being the first player in the market results in market leadership in subsequent years when the market is more open and attractive for other investors. 5. Product Diversification: It can move to related-diversified towards telecommunication and Mobile handsets in India.Globalization strategy of wipro CHAPTER. 3. where there is a huge potential for further growth. Strategic Business Units which are right now in question Mark (BCG Matrix) should increase their market share by implementing long term strategies to become in the star mark(BCG Matrix). which is a 3rd largest user for Mobile phones.7 A P PE N DI C E S 7. Wipro can take the strategic advantage of growing market demand of retails which is booming in Indian Market by having strategic alliance with different Retail Companies. Wipro should try to improve in net profit margins to improve its valuations in the coming years.

com/webpages/index.Globalization strategy of wipro 7.dqindia.com Page 52 .wipro.com  Business Today magazine www.com/product www. which was gathered through various sources mentioned below:  Internet: www.wipro.com www.htm  Data Quest Magazine www.2 BIBLIOGRAPHY: There was immense need and flow of the information while conducting the analysis as well as While writing this report.hinduonnet.marketresearch.Quickmba.com  Business Line www.

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