Defining process excellence

with Wipro IT Organization

Redesign
January 2012

TBR

Wipro Whitepaper | January 2012

T ECH N O LO G Y B U
S I N E S S Business
R ES E AR
C H , IInc.
N C.
Technology
Research

Contents ....2
Introduction ......3
Wipros Principles of Effective Organizational Structure ....3
Wipros IT Organization Redesign Overview ....6
Wipros IT Organization Redesign Framework .7
Wipros IT Organization Redesign Capabilities .8
Critical Success Factors .......9
In Summary .11
About Wipro .....11
About TBR .11

Wipro Whitepaper | January 2012

Technology Business Research Inc.

Wipro Consulting Services IT Organization Redesign:

Crafting a long-term strategy for operational efficiency
Todays economic climate exposes inefficiencies in practices across IT organizations, heightening
the need to consolidate systems, eliminate redundancies and minimize inconsistent
methodologies for long-term growth.
TBR Position and
Executive Summary
Wipro has identified
opportunities to provide
roadmap solutions for
the design and
implementation of
strategic IT across an
organization to drive
efficiencies for clients.
Wipro is combining cost
savings with identifying
processes to scale
globally in support of
growth driving its
redesign engagements.
Challenges clients face
include improving
agility, service level
agreements (SLAs) or
success outcomes,
business value and
identifying cost savings
opportunities to the
client. TBR believes
clients recognize
Wipros value
proposition in
redesigning IT processes
for the long term and
are capitalizing on new
opportunities to
strategically cut costs
and improve IT
effectiveness
3

Introduction
The need to drive more effective business decisions and leverage IT for efficiency,
compels enterprise organizations to undertake initiatives to improve outdated
systems and processes while eliminating costs. To achieve these goals,
organizations are redesigning their IT departments to establish sustainable
competitive advantages, such as enhanced customer service quality. Enterprises
are leveraging IT organization redesign projects to facilitate large-scale business
transformation, acquisition integrations and optimization of business process
outsourcing.
TBR believes organizations across all industries recognize the need to approach IT
organization improvements from every angle to ensure platform stability and
flexibility. Additionally, we believe organizations are becoming increasingly aware
of the importance of managing business transformation and merger integration
through IT organization redesign. Such a comprehensive approach allows
organizations to more easily adjust to volatile market conditions by integrating the
IT organization into the business model and providing tools to effectively support
the broader enterprise. While cost audits often focus on the IT organization cost
center where spending cuts ought to be made, TBR believes the most innovative
organizations increase IT investments that drive more efficient operations for
benefits during downturns and eventual recovery. Widespread demand for IT
organization redesign has consequently increased significantly since the downturn
and has persisted throughout the gradual economic recovery.
Wipros well-founded IT organization redesign practice leverages expertise in both
technical and vertical industries. The combination of this expertise with the
companys command of Lean and Six Sigma methodologies positions the firm as a
business IT consulting partner that enables clients to rapidly climb the value chain.
Wipros process redesign knowledge expertise and capabilities, as well as its
orientation toward standardization and frameworks methodologies, enable it to
deliver a client-facing, comprehensive solution for IT organization redesign that
offers benefits at all levels of the organization.

Wipro Whitepaper | January 2012

Technology Business Research Inc.

Case Study
Case Study
Wipro brings operational
Banking
and Financial
best practices
to a joint
Services
in North
ventureMNC
between
a
America
leading oil refinery and a
chemicals provider

The technology department

for a line of business for the
On completion
joint
MNC
lacked scaleoftothe
meet
venture, demand.
the two organizations
increased
In addition,
created
a
singlelacked
internal IT
the department
services department
to replace
coordination
at the global
a
system
in
which
one
level, had a high amount of
companys
IT department
rework
and the
quality of its
covered
both
The
deliverables wascompanies.
inconsistent.
challenge was to restructure
the ITaligned
department
andtoalign
Wipro
services
the
process
with
business
business definitions, carriedneeds
while continuing
out
end-to-end
service
operations
unimpeded.
delivery analysis,
segregated
core and non-core activities
Wipro
was brought
in toand
and
developed
a flexible
identify
roles
and
Lean delivery model to curb
responsibilities for which it
expenses.
used governance best
generate
a more
Aspractices
a result,to
Wipro
provided
the
uniform
process
for
department with a:
operations. The company
Reengineered delivery
identified new service delivery
model that is scalable and
models to improve IT service
supports increases in
offerings.
demand with little impact on
costs
As a result of Wipros
Flexible operating model
assistance there is now:
Set of definitions and
An IT organization structure,
recommendations for
including detailed job
functions and roles
descriptions
Roadmap for transformation
An outsourcing strategy
A roadmap to implement IT
governance
ISO 27001 compliant
procedures and policies

Wipros Principles of Effective Organizational Structure

Wipro initiates IT organization redesign by examining the state of a companys
organizational structure, leveraging its principles of an effective organizational
structure to determine areas where operational effectiveness can be enhanced.
Wipro applies its knowledge of organizational structure to IT redesign
engagements to ensure that any proposed changes to an organizations IT
environment support the goals, processes and strategies that typify each level and
division of that organization. The consulting approach emphasizes goal alignment
at all phases of the IT organization design process to ensure any changes to an
entitys IT organization synergize across all organizational levels. Wipro highlights
six principles it applies to develop an effective organizational structure that can
carry out transformational IT redesign by universally connecting all key operational
segments of the client organization.
1. Skills-based work assignments: Separating employees based on skills
and capabilities allows the organization to effectively plan and utilize
the right employees, minimizing excess training and downtime and
reducing errors made while transitioning from one process to the next.
This separation contributes to agility and scalability, allowing client
organizations to ramp up or ramp down efforts based on demand.
2. Shared operations through job cards and service requests: Leveraging
shared operations allows the organization to align teams centrally for
focal areas, including types of technology and types of request or
function or other bundling options. Organizations can request handling
through job cards and service requests In line with service catalogs and
service level agreements, serving to balance workloads with minimum
and maximum thresholds on utilization levels for employees.
3. Flexible operations: By identifying a balanced mix of core and flexible
resources as a strategic component of scalable operations, clients can
maintain a standard base of employees to run baseline operations, or
augment with an adaptive workforce during peak periods for efficient
and effective ramp-up. Wipros Optimum Skill Versatility Index enables
clients to understand required skills across resources that help them
remain prepared and flexible by classifying resources into groups or
teams based on specific technology focus and functionality.
4. Demand management: Demand management enables organizations to
develop rolling production schedules that capture baseline demand,
and then leverage economies of scale and diversified services catalogs
to offset demand fluctuations that arise from inaccurate forecasts and
unpredicted spikes. Production Planning and Control mechanisms with
baseline and projected demand help establish variable demand

Wipro Whitepaper | January 2012

Technology Business Research Inc.

environments.

Case Study

5.

Optimization of Cost of Service: Benefits from cost of service

optimization include shared infrastructure, tools, environments and
testing, reusable and standardized components, full or semiautomation, and quick change-over processes, such as Lean production
methods that reduce waste.

6.

Closed Loop Operations: A closed-loop approach to operations

brings analysis of post-deployment feedback to clients, providing an
open dialogue for continuous improvements to operations. This final
principle of effective organizational structure allows Wipro to closely
monitor changes and developments after a transformation is
completed.

Large Insurance MNC in

North America
To better understand how to
meet demand and determine
the best growth drivers, the
MNC enlisted Wipro to
develop workforce
competency and shared
services that will improve
operations. Through
workshops and
recommendations, Wipro
identified 17 structural gaps
within the operating model
block. Additionally, Wipro
recommended achievement
targets for the IT organization
and the need for IT
transformation primarily in its
management, which is a
central function.

Wipros success in creating effective organizational designs stems from its

comprehensive view of IT organizations and its ability to isolate key components
necessary to be integrated into design frameworks.

Components of Effective Organization Design

1.
Leadership

Wipro developed a roadmap

for IT organization
transformation. The vendors
quick pilots within a limited
scope of the organization
allowed the MNC client to
test and prove the value or
ROI or effectiveness of the
recommendations prior to
completing the full-blown
transformation.

4. Work
Processes
and
Systems

5. Culture

2. Decision
Making and
Structure

3. People
SOURCE: WIPRO

As the above graph describes, Wipro asserts that leadership is the primary
component required in an effective organization redesign. Leaders must possess a
clear vision of the evolution and be able to prioritize tasks to empower the
workforce and motivate the troops behind managements transformational
agenda of retooling the IT organization. Cohesion in the leadership team is
essential, and Wipro believes it is the tie that binds a transformation and leads
5

Wipro Whitepaper | January 2012

Technology Business Research Inc.

efforts from idea creation to implementation. Just as leaders require employees to

be flexible as IT organizations undergo operational improvements and process
shifts, leaders must possess the capacity for change and must stand by their
message.

Case Study
Large Insurance Firm
The insurance company had
multiple frameworks,
governance mechanisms and
redundant processes
spanning its five verticals.
Despite working with several
consulting firms, the
company was unable to
achieve its desired process
goals.

Wipro was brought in and

established a Process
Governance Council (PCG)
across the five verticals,
which ensure cross-functional
process ownership. In
addition Wipro designed the
Process & Quality
organization and a Process
Factory model with a single
Quality Management System
(QMS).

Clear decision making and structure is the second component of effective

organization designs, as roles and accountability for decisions must be
transparent, clearly articulated and understood to establish ownership of the
transformation. Organizational structure must support overall objectives of
consolidation or restructuring to provide a chain of command that affords a clear
path for inquiries and clarity into each layer of the organization.
People constitute the third pillar of effective organization design, as successful
redesign hinges on the capabilities of employees to perform both individually and
collectively as an organization. To drive productivity and employee satisfaction
during turbulent times, Wipro believes leaders must implement performance
measures and incentives that closely align with corporate objectives. Unification of
employees across the organization is critical to a successful transformation,
minimizing the risk of inefficiencies that may arise from disparate workers.
The fourth pillar, Work Process and Systems, includes successful execution of
programmatic work and processes and effective and efficient support of processes
and systems. The final pillar, Culture, encompasses high-performance values and
behaviors as well as capacity and willingness to change as a group.

Wipros IT Organization Redesign Overview

Types of Organization Design
Type

As a result of Wipros efforts,

the client achieved 40% cost
savings over a traditional
QMS.

Characteristics

Skill-Based

Organized based on the skills and it can be applicable when the

organization is small and no need to manage across multiple
geographies

Service-Based

Organized based on the services and it can be applicable when the

organization has different services and resources and skills needed are
different

Solution-Based

Organized based on the services that are packaged for each solution
and it can be applicable when the organization has different services
and each service has multiple solution lines

LOB/ AccountBased

Organized based on the LOBs/Account/Clients served and it can be

applicable when customers are very different, and have different
service requirements (resulting in different programs provided)

Hybrid

Organized based on the LOBs/Account/Clients served and it can be

applicable when customers are very different, and have different
service requirements (resulting in different programs provided)

SOURCE: WIPRO

In addition to considering the impact of IT redesign on the structure and

interoperability of an organization, Wipro segments the process of organization
design according to the culture, processes and offerings of a given entity. Wipro
6

Wipro Whitepaper | January 2012

Technology Business Research Inc.

Case Study
Large Credit Card
Firm
The credit card companys
IT department was costly,
lacked cross-functional
ownership and had
redundant tools.

Wipro established a
Process Excellence Office
and consolidated the
service desk by service
catalog, SLAs, OLAs and
UCs. In addition Wipro
developed a metrics
program, established
productivity-based
budgeting and product/
account level P&L
reporting.

Due to Wipros services,

the credit card company
has standardized and
institutionalized
processes and
quantitative decisionmaking capabilities, and
expects cost savings of
$14 million to $40 million
over three years.

divides organization redesign efforts into three levels, tailoring its redesign
frameworks and methodologies to meet segment-specific requirements while also
ensuring alignment across the enterprise. By initiating organization design at the
skill-based level, Wipro ensures an organizations human resources are aligned to
effectively support the overall change. Wipro then moves up the stack to service
and solution-based design, restructuring service lines and solution offerings to
support IT redesign. Lastly, it engages organization redesign at the LOB/Account
level to align customers with organizational changes. Wipro breaks IT organization
redesign into five types to address each engagement requirement appropriately.
For each redesign type, Wipro learns organizational processes to identify areas
where additional requirements are needed to facilitate a global virtual
corporation.
Wipro highlights four building blocks on which it develops IT organization
redesign, across all five types.
1.

Process decomposition: Wipro develops core and non-core processes to

gain an understanding of the specific business. This serves to identify and
isolate competitive advantages while seeking ways to shed disadvantages
for the client.

2.

Optimal technology innovation: In this phase the vendor develops

technologies and delivery methods to map changes that have occurred in
the business following the previous delivery. This sets a benchmark for
performance on which to compare new IT designs.

3.

Deep-dive into core processes: Includes designing sub-processes that can

be assigned to a control unit for scale and expertise (this is effectively a
Lean approach to business process management, an area of strength at
Wipro)

4.

Transfer to variable cost and true partnering models: Wipro leverages its
extensive knowledge via industry experts to take an all-encompassing
approach to partner selection to define process and technology partners
capable of assuming management over a broad set of core and non-core
processes. Technology partners typically assume a risk-reward basis for
payout, including traditional iron clad and arms length BPO contracts for
compensation.

These essential blocks form the approach Wipro uses to assess technologies and
business processes. TBR recognizes the value of this four-part, replicable approach
as a thorough and all-inclusive methodology to tackling IT organization redesign.

Wipro Whitepaper | January 2012

Technology Business Research Inc.

Case Study

Wipros IT Organization Redesign Framework

MNC Banking Institution

After announcing the
reorganization of its IT
organizations corporate direct
reports structure as well as a
major consolidation of its
enterprise-wide business
applications the MNC banking
institution selected Wipro to
develop a roadmap for
restructuring its applications
and IT infrastructure into a
shared service model.
To facilitate the reorganization
process, Wipro conducted
interviews with key applications
users and analyzed job skills,
functions and processes to
assess the connectivity between
occupation and IT applications.
Wipro also examined the
synergies between
organizational IT processes and
assessed the clients IT goals,
governance and departmental
improvement initiatives.

Framework Guide To Set Up Service Oriented Business Unit

Design and structure functions to better align with business
Segregate value delivery chain based on skills and segment into core
and non-core
Strategy & Structure

Process & Delivery

Models

People & Skills

Flex pool of resources with shared operations allows optimum

utilization of resources
Productive alignment of services/ support, leverage offshore team to
remove lag
End-to-end value analysis of service delivery processes
Quantitative analysis to set, measure and plan process, delivery,
quality and cost improvements
Embed prototyping and other relevant agile methods to ensure effective
and efficient service delivery
Identify best in-class resources and appropriately allocate to
functions
Create dedicated COE s based on functional and task expertise
Provide training to balance capacity and demand
Enable Service Quality Training
Assess readiness of organization for change

Culture &
Communication

Technology
Infrastructure

Create a communication framework

Clearly define goals and objectives for each role
Provide on-boarding/ training on service-oriented business model for
team members
Provision of appropriate technology tools to support software
development life cycle, configuration management and reporting

SOURCE: WIPRO

Ultimately, Wipro:
Delivered a custom IT strategy
that meshed with the clients
existing global IT initiatives
Implemented a system for
project management within
the companys traditional
applications management
process lifecycle
Communicated benefits and
synergy of a revitalized
strategy across organizational
levels

To design a roadmap for transformation from legacy operations to a streamlined

organizational platform, Wipro leverages its five-tiered organizational redesign
framework. To ensure IT redesign efforts align across all elements of an
organization, Wipro applies the building blocks outlined above across five
fundamental organizational layers:

To guide IT organization redesign throughout each of these layers, Wipro divides

the process into two phases:
Discovery: During the process of discovery, Wipro analyzes the IT organization of a
given company to realize how the system functions and the key areas where IT
processes and models are adding value to the organizations operations as well as
areas that require improvement. In this stage Wipro uses a combination of
interviews, strategic analyses and data collection to develop a sense for the
alignment and interactions of IT processes and systems across an organizations
operations.
Design, Verification, and Roadmap for Implementation: Once Wipro develops a
clear picture of how strategy, structure and goals impact an organizations IT
processes, it initiates the process of transformation. During this phase Wipro maps
and implements its IT organization redesign strategy.

Wipro Whitepaper | January 2012

Technology Business Research Inc.

Wipros IT Organization Redesign Capabilities

Wipro shapes IT organization redesign offerings around its established frameworks
and methodologies, as well as its perceptions of the industry-level trends
impacting the effectiveness of organizational IT systems and processes. Wipro
identifies specific areas constricting growth potential for clients through a review
of their IT structures. Wipros findings reveal that accepted practices must be
fundamentally changed to lay a foundation for new avenues to growth. There are
three typical focus areas that must be addressed to establish a solid framework for
growth:
1. Inflexible operating models that contribute to inefficiencies as operations
respond to varying levels of client demand;
2. Limited participation of IT as a strategic influencer of technology-driven
business growth;
3. Diversification and broad distribution of IT services and support across the
organization that limit the organizations ability to create synergy.
Wipros IT organization redesign capabilities are supported by its well-established
base of consulting resources. Wipros cadre of high-value consulting expertise is
central to its highly specialized, vertical-specific IT organization redesign offerings.
The practice has over 60 BPM consultants with expertise that spans business
strategy, organizational structure planning and IT organization design. Consultants
are certified in areas such as ITIL, COBIT, ValIT, CMMi, PRINCE2, and Lean and Six
Sigma methodologies. Wipros consultants have established practical experience
in IT organization redesign through participating in over 35 engagements with
clients across vertical industries.
Wipro Consulting Services IT Organization Redesign practice targets Fortune 500
companies across the globe with over 60+ experienced consultants with a unique
blend of Business and IT domain expertise. Wipros methodology aims at
transforming global organizations and determining what should be local versus
global.

Critical Success Factors

Wipro treats each IT organization redesign engagement separately, as the goals,
interconnectedness of IT processes and systems, and the characteristics of a given
organizations operational strategies generally necessitate unique, client-tailored
approaches to the transformation process. Transforming an organization comes
with critical pivot points leaders must be cognizant of to stem failure at all stages
of redesign. Wipros IT organization redesign outlines three critical success factors

Wipro Whitepaper | January 2012

Technology Business Research Inc.

that enable successful transformation and consolidation to build an efficient IT

operating unit:

10

1.

Utilize a comprehensive design approach, including strategy processes

and people considerations: Clearly defined governance, responsibilities
and service levels for a centralized IT organization is essential for
understanding current organizational processes and functions and
determining areas that should be reshaped to successfully transform
the business. In doing so Wipro assesses current processes,
application/request lifecycles and workflow maturity levels to evaluate
organizational readiness. Proper scale to capture synergies, skill pooling
and operational efficiencies must be understood and set in place, in
addition to creating mutually aligned objectives and priorities.

2.

Focus on process excellence, ongoing quality and service

improvement: Best practices and compliance with industry standards
are essential for continuous high efficiency and include such elements
as CMMI and ITIL. To strive for optimal efficiency and lower operational
costs and higher throughput, organizations must continually adopt
improved standards and processes, allowing for the cost and quality
benefits to be translated to the client. By setting realistic, achievable
near-term and long-term goals, organizations can continually improve
their organizational effectiveness while maintaining a disciplined
approach through a step-by-step improvement program. As a result
organizations will be able to spread a culture of service excellence and
continual quality improvements to employees, helping to motivate and
sustain company growth.

3.

Develop staged implementation roadmaps according to the

organizations change readiness: Organizations need a plan of action;
developing a complete road map to organization transformation can
reduce the risk of setbacks along the way. The shift to new platforms
must be articulated to those responsible for managing and maintaining
IT operational areas to help facilitate the organizational shift. Risk
analysis measures and re-evaluating particular changes are an
imperative part of the road-mapping process to prevent organizations
from engaging in overly complex IT shifts that may have a more
detrimental impact on operations or costs than their potential positive
impact. As organizations pursue transformation, measures must be
taken to reach a level of change readiness where there is a strong
understanding of what needs to be addressed and how. As
organizational IT transformations become increasingly complex, with
new innovations and more advanced standards, change awareness will
be a leading factor in determining the level of success an organization
can achieve through the process.

Wipro Whitepaper | January 2012

Technology Business Research Inc.

In Summary
Wipros developed IT organization redesign capabilities are the result of
understanding a broad spectrum of redesign strategies as well as its development
of standardized frameworks, underpinned by experience in such engagements.
Wipro has a full range of solution sets and implementation tools required to gain
traction in this fast-developing marketplace based on established methodologies
and strategic partnerships. TBR believes Wipros IT organization redesign services
are business imperatives, reinforced by a growing number of both cloud and
mobility initiatives in day-to-day operations of a companys business. These
engagements will trigger (and be triggered by) a need to rebuild the IT
organization with the least amount of disruption while maximizing flexibility and
taking advantage of improvements in modularity. TBR believes Wipros
established portfolio of solutions and services, tied in with its strong alliances,
position the provider well to increase its market share in the IT organization
redesign segment.

About Wipro
Client
Wipro Technologies, the global IT business of Wipro Limited (NYSE:WIT) is a
leading Information Technology, Consulting and Outsourcing company, that
delivers solutions to enable its clients do business better. Wipro Technologies
delivers winning business outcomes through its deep industry experience and a
360 degree view of "Business through Technology" helping clients create
successful and adaptive businesses. A company recognized globally for its
comprehensive portfolio of services, a practitioner's approach to delivering
innovation and an organization wide commitment to sustainability, Wipro
Technologies has 120,000 employees and clients across 54 countries.

About TBR
Technology Business Research, Inc. is a leading independent technology market
research and consulting firm specializing in the business and financial analyses of
hardware, software, networking equipment, wireless, portal and professional
services vendors. Serving a global clientele, TBR provides timely and accurate
market research and business intelligence in a format that is uniquely tailored to
clients needs. TBR analysts are available to further address client-specific issues
or information needs on an inquiry or proprietary consulting basis.

For More Information

TBR has been empowering corporate decision makers since 1996. For more
information, visit www.tbri.com.

11

Wipro Whitepaper | January 2012

Technology Business Research Inc.