DQ Top 20 RANK 4 - Wipro One stack, One Wipro, One Question Mark 

Wipro may not have shown any fireworks but its subtle, perseverant change of the GBL model has manifested some good news this year. 

While other biggies struggled to keep their heads out of water in a post-SVB and post-pandemic storm; Wipro has managed to swim with slow, but forward, strokes. 

Its FY 22-23 revenue crossed US$11 billion, a growth of 11.5 percent YoY in constant currency terms. The large deal total contract value (i.e., deals greater than or equal to US$30 million in total contract value) in the fiscal year 2023 was at US$ 3.9 billion, which grew 66.5 percent year-on-year. IT services operating profit is the highest ever, at US$1.7 billion for the year. For the year ended March 31, 2023, gross revenue reached ₹904.9 billion (US$11.0 billion1), an increase of 14.4 percent YoY. IT services segment revenue increased to US$11,159.7 million, an improvement of 7.8 percent YoY. 

Thierry Delaporte, CEO, and Managing Director 

“We closed FY23 with the strongest-ever bookings recorded in a year. We delivered two consecutive quarters of total bookings of over $4.1 billion. Our large deal order booking grew by 155% year-over-year for the quarter.” 

Its senior leadership believes that the company has maintained its focus on operational improvements and productivity enhancements—resulting in IT services margin exit at 16.3 percent in Q4 despite macro headwinds. As per the outlook indicated in its annual report, technology spending is forecasted to increase with enterprises investing in value-driven transformation focused on areas like cloud transformation, automation, integration of AI, data analytics, and cybersecurity as their top priorities. The demand for digital transformation and infrastructure modernization will continue to drive growth for the industry with the accelerated adoption of digital and emerging technologies, such as next-generation AI, Augmented Reality (AR), Virtual Reality (VR), extended reality, Web3, and the Metaverse, 5G and Edge, cyber and bio convergence. Global IT service providers are equipped to support enterprises across various industries to overcome the current challenges, with a wide range of offerings in software development, digital transformation, IT business solutions and consulting, research and development, technology infrastructure, and business process services. The IT services industry is expected to accelerate and drive decisions in the fiscal year 2024 based on investments made by clients in cost optimization, operational excellence, digital transformation, vendor consolidation, productivity improvement, customer experience programs, innovation in products and services, talent management, future of workplace and workforce, and environmental, social, and governance (ESG) initiatives. 

Key Wins 

• A US-based healthcare company (for the transformation of its technology-enabled health services business) 

• A US-based multinational apparel and fashion major (end-to-end automation across infra) 

• A global personal care and home products distribution company (for SmartOps and application stability) 

• Menzies Aviation (for the transformation of air cargo services) 

• A multi-year engagement with a leading Europe-based communications group (for global deployment of enterprise software) 

• A UK-based health insurer (business process transformation) 

• A large, US-based life and annuities insurance firm (Cloud migration, IT modernization) 

• A US-based multinational bank (Infra modernization) 

• A second eight-year large deal with a leading European outsourcing and facilities management company (digitization of core finance and accounting) 

If we sniff a pattern here, it’s easy to see that a lot of business is coming from transformation deals – and majorly from BFSI – although other verticals are also filling in the basket very well. 

Incidentally, this year, the company also opened its Americas Headquarters in East Brunswick, New Jersey—to cater to clients in the Americas region, which makes up nearly 60 percent of Wipro’s global revenues. Now does that call for a diversification of its strategic eggs? Also noteworthy is the role that products are playing (or not) in the revenue pie. IT Products segment revenue for the quarter was ₹1.1 billion (US$13.8 million); for the year was ₹6.0 billion (US$73.6 million). The company has created a 5G Def-i Platform to accelerate the connected enterprise. 

Not to be caught behind other AI racers, Wipro has also forged partnerships with the likes of Google Cloud to integrate generative AI into its entire suite of capabilities, accelerators, IP, and solutions. Among other future-ready bets, it announced four strategic global business lines (GBLs) to deepen alignment to clients’ evolving business needs and capitalize on emerging opportunities in high-growth segments of the market. It plans to deliver capabilities to clients through four GBLs organized around cloud, enterprise technology and business transformation, engineering, and consulting. The idea is to tap the power of ‘One Wipro’ to deliver on clients’ entire spectrum of business and technology transformation goals. The effort is now clearly towards building fully integrated stacks like Wipro FullStride Cloud, Wipro Enterprise Futuring, and Wipro Engineering Edge. Also, Wipro Consulting will align Capco, Designit, and Wipro’s Domain and Consulting business under a single banner. 

Its top leadership reflects that the transformation journey over the past three years has yielded outstanding growth for its business “So much that we have outgrown the two-business line model that we had set at the beginning of our journey.” 

The dartboard for the quarter ending June 30, 2023, shows expectations of revenue from the IT Services business including the India State Run Enterprise (ISRE) segment to be in the range of US$2,753 million to US$2,811 million. 

The one-bundle approach will find a lot of room to show its magic ahead. Let’s see if it can move from ‘one throat to choke’ to ‘one head to crown’ and ‘one hand to shake’ experience.  

BY Pratima H