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A CASE STUDY PRESENTATION ON

WIPRO LTD THE NEW FACE OF GLOBAL COMPETATION

SYNOPSIS
Wipro

ltd is one of the biggest IT company in the world, it represents India in global competition. 15 years ago, Wipro ltd of India was selling everything from cooking oil and personnel care products to knockoffs of dell microcomputers and light bulbs. In the year ending march 2005 Wipro generated $1.87 billion in sales, the majority from export contracts in information technology services.

It

sales have grown by more than 25% a year since 1997, And that growth shows no sign of slowing. The companys vary profitable, earning $ 363 million in net income in the year ending march 2005

SUMMARY
Wipros

move into technology began in 1989 when General Electrics entered into a joint venture with Wipro, Wipro GE Medical Systems, to make and sell GE ultra sound scanners under license in India, this results in revenues just $ 15 million GE quickly set aside $ 5 million a year to hire Wipro software programmers to write code for GEs ultrasound machines and scanners.

GE

was contracting out work to other Indian technology companies, playing them of against each other in its drive for ever lower costs. To hold onto its GE business, Wipro found that it had to improve its own operating efficiency, so Wipro looked at what GE was doing, and copied it. Wipro's joint venture with GE helped in this regard

DID GENERAL ELECTRIC HELPS TO CREATE WIPRO? HOW?

General electric helped to create wipro Earlier wipro was engaged in producing cooking oil and personal care products light bulbs etc. But in 1989 wipro entered into technology field by the joint venture with GE

At the mid 1990s wipro was getting as much as 50%of its revenue from GE

After some time GE taught wipro a hard lesson .it was contracting with other IT companies and playing them of against each other for lower cost to hold on GE business Wipro found that it had to improve its own operating efficiency so it looked at what GE was doing and coped it. Since it gave wipro a window into GE relentless push for operating efficiency thus wipro was one of the first Indian company to adopt the six sigma process for improving operating efficiency .

WHY?
Since 2000, Wipro has moved abroad, establishing sales offices in 35 nations and design centers in nine.

Reasons

Wipro wanted to expand its business and to become a more global company. Around the world it has been hiring local nationals to lead its sales push. By 2005, the company hopes that three quarter of the employees that customers see will be local nationals. By using locals provide the cultural and linguistic.

It has now nine devt centers in Europe and US. These centers focus on product devt work where more communication between Wipro engineers and client is required and where language is an issue.

WHAT WOULD HAPPEN TO COMPANY?

If it did not follow this strategy It would not satisfy the customers because of culture and linguistic problem. It would not win more business. It would not be able to make clients smile and would not help to Wipro to build stronger relationship.

OUTSOURCING WORKS TO WIPRO

GE quickly realized it had found a cheap source of talented engineers and programmers. India has a solid base of technology focused universities and colleges that turn out many engineer every year . The vast majority speak English . While software programmers in the US with two to four years of experience make $64000 a year , similarly skilled individuals in India can be had for as little as $2 an hour , and programmers at Wipro on average earn $10000 a year.

INDIAS IT COMPANIES CONTINUE TO PROSPERS :


The IT company increasingly is moving upstream in to high value added application. For Ex in 2002, IT signed to deal to design and engineer tape storage devices for storage technology. In 2004 IT took over responsibility for all development work on this product line from 200 employees in Minneapolis .

MARUTI

MAHESH

AMRUTHA

LAKSHMI BS

MANJUNATH

MADHUSUDAN

NAGABHUSHAN

LAXMI NARASIMHA MURTY