understanding wipro technologies and the dynamics of the information technology industry

FINAL TERM PROJECT REPORTONINDUSTRY ANALYSIS OF THE INFORMATION TECHNOLOGY SECTOR AND UNDERSTANDING THE COMPANY PROFILE OF WIPRO TECHNOLOGIES LIMITED

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FORMMS (2013-2015)

K.J. SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCHINDUSTRY ANALYSIS OF THE INFORMATION TECHNOLOGY SECTOR AND UNDERSTANDING THE COMPANY PROFILE OF WIPRO TECHNOLOGIES LIMITED

SUBMITTED BY:MR. DHRUV SANGHAVIMMS, ROLL NO. 47

UNDER THE GUIDANCE OF :PROF. NEHA GUPTA

K.J. SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

DECLARATION

I, MR. DHRUV SANGHAVI, hereby declare, to the best of my knowledge and ability that my work on the Final Term Project title INDUSTRY ANALYSIS OF THE INFORMATION TECHNOLOGY SECTOR AND UNDERSTANDING THE COMPANY PROFILE OF WIPRO TECHNOLOGIES LIMITED is a genuine research work undertaken by me. It has not been published anywhere earlier.

MR. DHRUV SANGHAVI ROLL NO. 47 DATE:

CERTIFICATE FROM PROJECT GUIDE

This is to certify that Mr. DHRUV SANGHAVI, a student of the MASTER OF MANAGEMENT STUDIES (MMS) program at K J SOMAIYA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH, has worked under my guidance and supervision. This final term project report title INDUSTRY ANALYSIS OF THE INFORMATION TECGNOLOGY SECTOR AND UNDERSTANDING THE COMPANY PROFILE OF WIPRO TECHNOLOGIES LIMITED has the requisite standard and to the best of our knowledge has no part of it been reproduced from any other project.

Prof. Neha GuptaProfessor of MarketingKJ SIMSR, Mumbai

Acknowledgement

It has always been my sincere desire as a management student to get an opportunity to express my views, skills, attitude and talent in which I am proficient. A project is one such avenue through which a student who aspires to be a future manager does something creative. This project has given me the chance to get in touch with the practical aspects of management.I am extremely grateful to the University of Mumbai for having prescribed this project work to me as a part of the academic requirement in the Master of Management Studies (MMS) course.I wish to appreciate the Somaiya Management and K J Somaiya Institute of Management Studies & Research for providing all the required facilities. I would also like to thank the MMS Coordinator, Prof Sivakumar for all his support and help.I also wish to thank my Project Guide, Prof Neha Gupta, for guiding me throughout the project. I also appreciate all the support provided by the library staff and the teaching and supporting staff of K. J. Somaiya Institute of Management Studies & Research for providing all the necessary academic content and the entire state of the art infrastructure and resources to enable the completion of my project.

Table of ContentsChapter 1 Introduction and industry analysisExecutive Summary2Introduction To IT Industry In India4Market Overview9Porters Five Force Model10

Chapter 2 - Company Profile About Wipro Limited15Time Line : Milestones17Wipros Mission and Vision:18Group Companies of Wipro20Business23Products23

Chapter 3 - Environment analysisEnvironment analysis: External and Internal25

Chapter 4 - About Wipro TechnologiesWipro Technologies29Brief History36Wipro Markets Itself38Inbound & Outbound40Wipro Service Offerings43SWOT Analysis50

Chapter 5 - Suggestions & ReferencesSuggestions54Conclusion55References:56

Executive Summary

Wipro is headquartered in Bangalore and has 28 development centers acrossIndia,EuropeandUSAandalsohas21officesinUSA, Canada, Finland, Taiwan, France and United Kingdom. Wipro has set a vision for itself to become a US$ 5bn company in the next couple of years. It aims to be top 10 IT companies in the world' top IT company in India, among top10 most favored employers in the world and to be among the top 5 brands in India. Wipro is a global company with revenues of Rs 30922 mn for the year2001. The revenues for the company have beengrowing atan annual average rate of 23% and PAT at an annual average rate of 50%. It employs total of 15000+ employees out of which 11500 employees are in IT business. Wipro follows Six Sigmaquality systems and is also a SEI-CMM level 5 company with principal lines of businesses being information technology (IT) and consumer products. It also has otherbusinesses of fluid power, lighting, medical equipment products and financial services. IT, which includes software services as well as hardware products, makes up the largest chunk of business for Wipro. It accounts for 84%oftotalrevenuesofWiproltd.TheGlobalITservices contributes57%oftotalrevenueswhereasIndianITservices contribute 27% of total revenues. The IT business makes up 84% ofthe revenues of Wipro Limited and around 93% of its PBIDT. Wiprohasaverygoodclientbasewithover50Fortune500companies and over 100 leading Indian corporates.In software Wiprohas emerged as the second largest player and is growing strongly and of toiletries has carved out a niche in the premium segment. Wiproalsohadaninterestinthefinancialservicesindustrythroughasubsidiary - Wipro Finance. This has proved to be a drain on the companyforthelastthreeyearsandthisyearthecompany has divestedasignificantportionofthiscompany andit isnolonger a subsidiary of Wipro. Wipro has a number of alliances with global leaders like Vignette, ATG (Art Technology Group), Open Market, iPlanet for e-business; with Aether systems, Agea corporation for m-commerce;with Neon, STC, Vitria, Mercator, Seagull for Enterprise Application Integration; with SAP for ERP; with Siebel, Clarify, Pivotal for CustomerRelationship Management; with ComputerAssociates, Cisco, Nortel, Sun for Technology Infrastructure Services etc.

Introduction To It Industry In India

India has emerged as the fastest growing IT hub in the world, its growth dominated by IT software and services such as Custom Application Development and Maintenance (CADM), System Integration, IT Consulting, Application Management, IS Outsourcing, Infrastructure Management Services, Software testing, Service-oriented architecture and Web services. When it comes to IT services, the world is coming to India. With a CAGR of 28 per cent during the last 5 years, the IT-ITES industrys contribution to Indias GDP has risen from 1.2 per cent during 1999-2000 to 4.8 per cent in 2005-06. Growth CurveA survey by the National Association of Software and Services Companies (Nasscom) shows why the Indian IT industry has become a case study of success: The Indian IT-ITES industry has recorded 33 per cent growth in exports, clocking revenues of US$ 23.6 billion in FY 2005-06, as compared with export revenues of US$ 17.7 billion in FY 2004-05. FY 2005-06 also saw the overall Indian IT-ITES industry (including domestic market) growing by 31 per cent registering revenues of US$ 29.6 billion, up from US$ 22.5 billion in 2004-05. Of the total IT-ITES exports in FY 2005-06, IT software and services grew by 33 per cent, registering revenues of US$ 13.3 billion The ITES-BPO segment clocked revenues of US$ 6.2 billion, recording a growth of 37 per cent. Engineering services and product exports grew from US$ 3.14 billion in FY 04-05 to US$ 4 billion in FY 05-06. Domestic market clocked revenues of US$ 6 billion in FY 04-05 from US$ 4.8 billion in FY 05-06.

Growth DriversAccording to Nasscom, the growth in India's services exports has been led by many factors, including: A strong demand and increased traction for traditional services like ADM New services like EAI (Enterprise Application Integration) and package implementation New areas like engineering services. Indian companies are enhancing their global service delivery capabilities through a combination of green-field initiatives, cross-border M&A, partnerships and alliances with local players. Global software product giants such as Microsoft, Oracle and SAP have established their captive development centres in India. Leading MNC IT companies have operations in India, accounting for 16 percent of their delivery capabilities in offshore locations, with India accounting for 70 percent of the total offshore employee base.

R&D India is fast emerging as a research and development hub for some of the largest IT companies in the world. The country is drawing 25 per cent of fresh global investments in R&D centres. In many cases, such as Oracle, Intel, Adobe, STMicroelectronics (STM), SAP and others, the India R&D centre is their largest facility outside the US or Europe. Others, including IBM, Texas Instruments, Delphi, HP, Microsoft, Google and Cisco have been tapping Indian talent for conducting cutting-edge research. According to Daniel Dias, director, IBM India Research Lab, India has a rich talent base. As a result, a lot is going on in the Indian context which forms the basis for R&D work. Meanwhile, the companies that are already here are betting big on India. For instance:

SAP Labs India is SAPs largest development facility outside Germany. Adobe Systems has 900 people in its India R&D operations the highest number outside the US. Chipmaker Intel has 3,000 staff in India, the majority in its R&D unit. Some of Intel India R&Ds recent contributions include complete design of the Centrino mobile chip called Napa. STM has built a state-of-the-art design campus in Greater Noida, which once fully developed, will have 5,000 engineers. The company has earmarked US$ 30 million in investments over the next two years.

Companies are lining up to invest in India, and a big chunk of their spending is directed towards setting up R&D facilities. As per the data compiled by the Ministry of Communications and IT, against 28 companies that outlined their investment plans, 17 have already infused capital. Six of these companies have committed over US$ 1 billion each towards their India operations. This includes Ciscos commitment of US$ 1.1 billion, SemIndias US$ 3 billion proposed investment, Intels US$ 1.25 billion, Microsofts US$ 1.7 billion, IBMs US$ 6 billion, and SAP Labs US$ 1 billion investment. Hardware on a high road According to the IT industrys annual review (2005-06) by Manufacturers Association for Information Technology (MAIT), hardware sales in India are tangible proof of the shifting patterns of growth in Indias IT industry. Desktops: Desktop shipments have gone from 1.9 million units in 2000-01 to 4.6 million units in 2005-06, reflecting a CAGR of 25 per cent between 1998 and 2005, and a growth of 27 per cent in 2004-05 alone. MAIT estimates desktop shipments to grow to 5.6 million in 2006-07, at an annual growth of 21 per cent. Processors: In 2005-06, the Intel P-4 processor dominated the market, with an 80 per cent share in all PCs sold during the year. Notebooks and laptops: Between 2000-01 and 2005-06, the annual sale of notebooks grew by 144 per cent, at a CAGR of 76 per cent. While only 41,670 notebooks were sold in 2000-01, a whopping 431,834 notebooks were sold in 2005-06, the bulk going to businesses and 13 per cent going into households. Servers: From 64,090 servers in 2000-01, sales have gone up to 89,161 units in 2005-06. Annual sales increased by 81 per cent, with 48 per cent of sales headed for Indias small towns, signalling a slow but sure shift to Tier-II towns. Printers: Laser is in, in the Indian computer printers market. Displaying a CAGR of 52 per cent, laser printer sales have gone from 71,000 units in 2000-01 to 325,000 in 2005-06. Inkjets continue to dominate the market. Of the more than 1.5 million printers sold in 2005-06, nearly half were Inkjets. Dot matrix printers are steady at a CAGR of 8 per cent, while Inkjets are growing at 14 per cent CAGR. UPS: Sales have shot from 398,195 units in 2000-01 to 1,208,413 units in 2005-06, displaying an annual growth of 27 per cent and a CAGR of 34 per cent. More than half (55 per cent) of the UPS sold were headed to Indias small cities. Keyboards and Monitors: Keyboards have shown an annual growth of 26 per cent, and a CAGR of 28 per cent. Monitor sales, dominated by the 15-inch monitors, have shown an annual growth of 27 per cent and a CAGR of 28 per cent. Internet: Indias internet penetration has gone from 350,000 in 2000-01 to 4,124,000 in 2005-06. One in four SEC-A households in India have an active internet connection, while 48 per cent of all business and 16 per cent of all homes have an active internet connection in the top 4 metros. Users are moving away from dial-up lines and opting for higher speeds and better connectivity of Cable and DSL links and ISDN dedicated lines.

Spread to Tier-II

IT or ITES, the action is shifting to Indias Tier-II cities, and the numbers speak for themselves. In 2000-01, 68 per cent of total PC sales were in the top 4 cities Indian metros. In 2005-06, that number is down to 33 per cent. Sales of PCs in smaller towns grew 35 per cent, accounting for 54 per cent of the total market. While the sales growth in the Top 4 cities was merely 10 per cent, in the Next 4 cities, it was a whopping 50 per cent.

Users

The profile of Indian IT users is changing. The retail sector has adopted computers with a passion. There has been a 127 per cent growth in retail outlets buying desktops, between 2000-01 and 2005-06. Factories have shown a growth of 46 per cent in the same period, while office locations a growth of 24 per cent.

Road Ahead

India is up to meet the global IT challenge. According to Nasscoms projections, overall software and services will grow by 25-28 per cent, clocking revenues of US$ 36-38 billion in FY07. IT-ITES exports are likely to grow by 27-30 per cent in FY 06-07, posting revenues between US$ 29-31 billion.

Market Overview

Bolstered with such a significant, technically sound resource base, the software industry has grown unimpeded. With a compounded annual growth rate of more than 50% between 1992 and 2001, the Indian software sector has expanded almost twice as quickly as the world-leading U.S. software industry did during the same period, although from a smaller base.Indias software industry statistics illustrate the massive strides achieved by this sector and the opportunities the future holds. According to NASSCOMs estimates for the fiscal year 2000-01, the countrys software industry is worth $8.26 billion, up from $100 million ten years ago. A study conducted by renowned consultancy firm McKinsey and Co., for NASSCOM, has proven why India is becoming the off-shore software development out-sourcers destination of choice. According to the NASSCOM-McKinsey study, the Indian software industry is expected to gross US$50 billion in exports in 2008! This is based on an average growth rate of 35 percent per year. The industry is well placed to achieve this target.

Porters Five Force Model

Threat of new entrant: HighEconomies of scale: High Though there is a low capital investment needed but due to capabilities of resources pool and brand-building takes a long time to achieve economies of scale. New entrants will have to survive till they achieve the economies of scale. In a dynamic industry, where each and every day a new software and technology coming up, its difficult for new entrants to have such a dynamic infrastructure to accommodate such developments at this speed.Proprietary product differences: MediumIt can bring the differences in individuals brand and enable them to attract premium charge for their product. As in Indian IT industry, we have enough number of big players like Wipro Technologies, Infosys, TCS, Patni, CISCO, HCL, CTS etc. So even Wipro is a well-known company its power to charge a premium price is not high, but medium. Brand Identity: HighIt plays a vital role in IT industry to get long-term deals. The global presence of Wipro Technologies is an identity for it in domestic market.Switching Cost: Low As all the companies in the industry provides almost same kind of solution in their specialization area, the clients dont have any switching cost or very low switching cost and they can have the same quality service from other players. Capital Requirement: Low So as to start an IT company in India its not difficult, but the difficulty lies with the investment in peoples training and development and brand building. As we are well known the fact of attrition rate in Indian IT industry, the cost required is quite high. Government Policies: LowGovernment has been favoring so far with IT industry. So there will not be intense problem other than some decisions to make the stability, to prevent the industry form economic meltdown. Bargaining Power of suppliers: LowHere the suppliers are the consultants who provide the Human Resource for the company, other suppliers like hardware parts, software trained people etc.Differentiation of Inputs: HighIts a people oriented business and people as an input to the business or to the process can make a huge difference.Supplier Concentration: MediumIt is all about the talented and skilled people availability in India and the centers, where the company operates. It is high in India especially in urban and metro areas. Impact of inputs on cost or differentiation: HighAgain people as an input can create a dramatic difference on cost as well its impact on companys image. The surveys like the top ten companies people wish to work, creates an impact on the talent pool they have and that they are going to hire. Threat of forward integration: Low The forward integration is possible in this Industry, but requires skilled people. For Example a company A provides an end to end solution like from Data storage to software and Hardware solutions to a client B, but after some time company B can decide itself to acquire a IT department team instead of outsourcing it.Bargaining power of buyers: LowBuyer concentration: High As maximum customers of Wipro technologies has been from US, UK and Europe, the sustainability of them is very high. The they can rely on them to some extent. Buyer Volume: High Wipro has its large client base and it is providing integrated services. Each and every year it is adding to its customer base. So the buyer volume is high. Buyer switching cost: Medium Even though the switching cost is low in this, the contracts are revised quarterly. Wipro always provides a high quality service to its clients. So the satisfaction of customers is high. Ability to integrate backward: Low Most of the companies for integrating back ward, it needs investments. Small start-up companies have less capacity to do that. At the same time large companies can do it if they feel their suppliers bargaining power goes up. So some of the MNCs are setting up their own development center.Substitute product: HighThe number of substitute product or service is more easily available in the industry for low cost. The quality and the reliability of those products are sometimes creates problem.Price / total purchase: High As the competition is getting tougher, the price is an important factor. Even then in this industry, the customization and the full solution model of products have the control over price factor. Product difference: LowBasic products and services are more over same. There is hardly any difference among big players.Threat of substitutes: HighRelative price performance of substitutes: highHere the substitutes are other major player offering the same services at different price or small players offering the same with very low cost.Switching cost: Low Its low, because the services are of same kind with little brand differentiation. So as to get the service from a cost effective company, customers will not think much to switch. Buyers propensity to substitute: MediumFor the same quality substitute buyers propensity to substitute is high. At the same time for quality reduced service or not a complete solution or for not having an end to end solution, clients show fewer propensities to substitutes. Threat of rivals: High Industry growth: HighAttracts more player in the industry, as the investment needed for a startup is comparatively less and more profitable than other industry.Fixed cost / value added: High.When an existing player is in industry, the firm can achieve the economies of scale over a short period of time if we consider the industry as of now. So it depends upon the economies of scale. Capacity of Industry: High. As the industry is growing in a fast pace, the client is also increasing with the need of developing their business with technological advancements. So the opportunity for new entrant is always there and the industry can have the capacity to give a place to all incoming and existing players. Product difference: Low.Basic products and services are more over same. There is hardly any difference among big players. So the product difference is very low. Brand identity: Medium.Every company has its own identity in this industry in case of all factors like customers preferences, employees preferences to work in a particular company, other companys preferences to create a joint venture. Diversity of Competitors: High. There are a lot of competitors providing variety of integrated services so as to retain their clients. There are global MNCs each year coming to India and capture and split the market share of big players.Exit barriers: High. Once the companies enter into contracts, it would be very difficult to terminate them. The reason it has is the huge money involved in it in long term process. The contracts basically would be for more than 5 to 10 years. The contracts having more credibility services, which should be provided by the company like data management service for a bank includes all its data about customer accounts. So accompany which signed for this contract cant stop in middle.

About Wipro Limited

Wipro is headquartered in Bangalore and has 28 development centers across India, Europe and USA and also has 21 offices in USA, Canada, Finland, Taiwan, France and United Kingdom. Wipro has set a vision for itself to become a US$ 5 bn company in the next couple of years. It aims to be top 10 IT companies in the world top IT company in India, among top 10 most favored employers in the world and to be among the top 5 brands in India. Wipro is a global company with revenues of Rs 30922 MN for the year 2001. The revenues for the company have been growing at an annual average rate of 23% and PAT at an annual average rate of 50%. It employs total of 14000 employees out of which 11500 employees are in IT business. Wipro follows Six Sigma quality systems and is also a SEI-CMM level 5 companies with principal lines of businesses being information technology (IT) and consumer products. It also has other businesses of fluid power, lighting, medical equipment products and financial services. IT, which includes software services as well as hardware products, makes up the largest chunk of business for Wipro. It accounts for 84% of total revenues of Wipro ltd. the Global IT services contributes 57% of total revenues whereas Indian IT services contribute 27% of total revenues. The IT business makes up 84% of the revenues of Wipro Limited and around 93% of its PBIDT. Wipro has a very good client base with over 50 Fortune 500companies and over 100 leading Indian corporates. In software Wipro is headquartered in Bangalore and has 28 development centers across India, Europe and USA and also has 21 offices in USA, Canada, Finland, Taiwan, France and United Kingdom. Wipro has set a vision for itself to become a US$ 5 bn company in the next couple of years. It aims to be top 10 IT companies in the world top IT company in India, among top 10 most favored employers in the world and to be among the top 5 brands in India. Wipro is a global company with revenues of Rs 30922MN for the year 2001. The revenues for the company have been growing at an annual average rate of23% and PAT at an annual average rate of 50%. It employs total of 15000+ employees out of which 11500employees are in IT business. Wipro follows Six Sigma quality systems and is also a SEI-CMM level 5 companies with principal lines of businesses being information technology (IT) and consumer products. It also has other businesses of fluid power, lighting, medical equipment products and financial services. IT, which includes software services as well as hardware products, makes up the largest chunk of business for Wipro. It accounts for 84% of total revenues of Wipro ltd. the Global IT services contributes 57% of total revenues whereas Indian IT services contribute 27% of total revenues. The IT business makes up 84% of the revenues of Wipro Limited and around 93% of its PBIDT. Has emerged as the second largest player and is growing strongly and of toiletries has carved out a niche in the premium segment. Wipro also had an interest in the financial services industry through a subsidiary- Wipro Finance. This has proved to be a drain on the company for the last three years and this year the company has divested a significant portion of this company and it is no longer a subsidiary of Wipro. Wipro has a number of alliances with global leaders like Vignette, ATG (Art Technology Group), Open Market, iPlanet for e-business; with Anther systems, Age corporation for m-commerce; with Neon, STC, Vitria, Mercator, Seagull for Enterprise Application Integration; with SAP for ERP; with Siebel, Clarify, Pivotal for Customer Relationship Management; with Computer Associates, Cisco, Nortel, Sun for Technology Infrastructure Services etc.

Time Line : Milestones

1945: Incorporation of Western India Products Limited. 1947: An oil mill and hydrogenated cooking medium plant set up. 1966: Azim Premji takes over the leadership of Wipro at the age of 21. 1975: Wipro Fluid Power set up to manufacture hydraulic and pneumatic cylinders. 1977: Name of the company changed to Wipro Products Limited. 1980: Information technology services for domestic market started. 1981: Hardware company is launched. 1982: Name of the company changed to Wipro Limited. 1984: Software products subsidiary - Wipro Systems Ltd. - established. 1985: Toilet soaps manufacture begins. 1988: Wipro BioMed, a new business unit to market and service bio-analytical and diagnostic instruments, is launched. 1989: Joint venture with GE of US for medical systems, Wipro GE Medical Systems Ltd. 1990: Product software business discontinued; software services begin. 1992: Lighting business and finance arm is established. 1994: Merger of subsidiaries Wipro Technologies Ltd. and Wipro Systems Ltd. with Wipro Ltd. 1998: Relaunch of Wipro identity with Rainbow Flower and positioning statement, "Applying Thought". 1999: Software business reaches SEI certification. 1999: Wipro Net set up by restructuring Wipro Ltd's communication services business to address the Internet market. 2000: Listing of Wipro Ltd's ADRs on New York Stock Exchange. 2000: Six Sigma initiative begun. 2001: Wipro becomes world's first PCMM Level 5 company. 2002: Wipro becomes CMMi. Acquires Raman Roy 's Spectramind for US$ 175 million to get into BPO space 2005: Wipro becomes a 4 billion $ company. 2006: Wipro becomes the world's largest R&D service provider. 2006: Wipro sees net profit for the three months to September rise 48% to $152m (81m)

Wipros Mission and Vision:Having already achieved the pinnacles of process and quality credentials (through ISO 9000, SEI CMM,PCMM and Six Sigma), Wipros Vision is focused on attaining leadership in the areas of business, customer and people. Business Leadership: Among the top 10 Information Technology Services companies globally and the No.1 Information Technology company in India. Customer Leadership : The No.1 choice of customers through innovative solutions and Six Sigma processes. People Leadership: Among the top 10 most preferred employers globally by creating an environment of empowerment, intellectual challenge and wealth sharing. Brand Leadership: Wipro to be among the 5 most admired brand in India. Wipro enters into various industries for various businesses in a constant innovative manner. This shows the firms strong approach of tapping new market with the spirit of achievement.

Group Companies of Wipro

Accounting, Procurement, HR Services, Loyalty Services and Knowledge Services. In 2002, Wipro acquiring Spectramind and became one of the largest BPO service players. It currently has 22,000 employees as of December 2011. Wipro GE Medical Systems: Wipro GE Medical Systems is a joint venture between Wipro and General Electric Company. As a part of GE Medical Systems South Asia, it caters to customer and patient needs with a commitment to uncompromising quality. Wipro GE is Indias largest exporter of medical systems, with unmatched distribution and service reach in South Asia. Wipro GE pioneered the manufacture of Ultrasound and Computed Tomography systems in India and is a supplier for all GE Medical Systems products and services in South Asia. Wipro Technologies: Wipro Technologies is a global services provider delivering technology-driven business solutions. Wipro is the No.1 provider of integrated business, technology and process solutions on a global delivery platform. Azim Premji is the Chairman of Wipro Technologies. He took over the mantle of leadership of Wipro at the age of 21 in 1966. Under his leadership, the fledgling US$ 2 million hydrogenated cooking fat company has grown to a US$1.76 billion IT Services organization serving customers across the globeWipro Consumer Care and Lighting:Wipro Consumer Care and Lighting, a business unit of Wipro Limited, has a profitable presence in the branded retail market of toilet soaps, hair care soaps, baby care products and lighting products. It is also a leader in institutional lighting in specified segments like software, pharma and retail. It manufactures and markets the Wipro brand of luminaries. Wipro Lighting offers lighting solutions across various application areas such as commercial lighting for modern work spaces, manufacturing and pharmaceutical companies, designer petrol pumps and outdoor architecture. Wipro Infrastructure Engineering: Wipro Infrastructure engineering was Wipro Limiteds first diversification in 1975, which addressed the hydraulic equipment requirements of mobile original equipment manufacturers in India. Over the past 25 years, the Wipro Infrastructure Engineering business unit has become a leader in the Hydraulic Cylinders and Truck Tipping Systems markets in India, and intends growing its business to serve the global manufacturing requirements of Hydraulic Cylinders and Truck Tippers. It has emerged as the leader in the hydraulic cylinders and truck tipping systems market in India. Worlds largest independent, first Indian IT Service Provider to be awarded Gold-Level Status in Microsofts Windows Embedded Partner Program. Wipro is presently ranked among the top 100 Technology companies in the world. It has 120,000 employees, serves 592 clients, and has 46 development centers across globe.Alliances: Wipro works with alliance partners to offer compelling business propositions for the customers. Wipros alignment with the technology leaders across various industries enables them to provide our customers with world-class solutions that transform their business processes. Key benefits: Creating competitive advantage by understanding the industry and bringing the right combination of products and services expertise to create a solution Reduce IT costs by developing and implementing cost-effective solutions at scale End-to-end solution thereby minimizing risk Seamless solutions for the client Reduced IT risksAchievements of Wipro Ltd: Awarded with DL Shah National Quality Award. BPO Excellence Award for Outstanding Work in Utilities Company in UK. The Outsourcing Excellence Award for Best IT Enablement in BPO. SAP ACE Award for Customer Excellence. National Telecom Award for Excellence in Infrastructure for Application Services. NASSCOM Corporate Award for Excellence in Diversity and Inclusion. IT Outsourcing Project of the Year 2011 award for innovation and achievement in outsourcing industry. ASTD BEST award for training and development. Ranked 23rd in the Top Companies for Leaders global list announced by Aon Hewitt, The RBL Group and Fortune. First company in the world to be certified in BS 7799 (2002) security standards. Only Indian company to be ranked among the Top 10 Global Outsourcing Providers in the IAOP-Fortune Global 100 listings. Among the top 3 offshore BPO service providers in the world. The first to get BS15000 certification for its Global Command Centre. Worlds 1st IT Services Company to use Six Sigma Worlds 1st PCMM Level-5 software company

BusinessProducts

Wipro Technologies IT Services Product Engineering Solutions Technology Infrastructure Services Business Process Outsourcing Consulting Services

Wipro Infotech Ltd.NotebooksDesktopsServersEnterprise ProductsSun ServersIBM ServersBusiness Application and DevelopmentData WarehousingTechnology Integration

Wipro Consumer Care & LightningFast Moving Consumer Goods

Wipro Infrastructure Engineering Construction, Mining, Agriculture, Ports

Wipro GE Medical Systems Ltd.Medical systems

Wipro BiomedSpecialty ProductsLife SciencesDiagnosticMedical SystemsManaged Services

Environment analysis: ExternalDemographic Forces: Demographic forces are outcomes of changes in the characteristics of a population, such as age, gender, ethnic, origin, race, sexual orientation and social classes. Wipro in its milestone journey, understood very well about the changing pattern of people, where it operates its businesses. Women Employees in Wipro Technologies: After India got freedom, the importance of womens right and education gained more importance. By around 1980s womens literacy rate in India is 25.6%, and then it started moving upward in each year. Now it reached 65.4%, where the rate of increase is higher than male literacy increase rate. Even then most companies may be more gender sensitive now. But the IT sector, where nearly 30% of the entire workforce is comprised of women, is way ahead of most other industries when it comes to gender neutrality and sensitivity. Wipro is one such company among those. The transition in the environment due to IT industry in past two decades made a significant impact on womens employment. Wipro gives equal employment opportunity for women. It recently decided to increase its female work force rate from 13%to 20%. Thats how it enriches and keeps its employees in a competitive high attrition rated industry like IT, ITES, BPO and health care. Three years ago, it conducted a study amongst its women employees, and came up with a Women of Wipro policy -- a policy that is designed to cater the needs of women. As part of that initiative, it has introduced several programs, including a unique nine-month mentoring program where senior managers mentor high performing women employees across levels, both on professional and personal fronts. Economic Environment:In the economic front, when Wipro ltd had been taken over by Mr. Azim Premji, he analyzed the economic environment and found the opportunities for the expansion and diversification in various industries. Even when it was under his fathers administration he took that into a consumer market segment, where he had seen an opportunity to tap the consumer goods market, which was a main concern of government to cater to the needs of domestic demands first. The next opportunity seen by them was the boom of infrastructure industry in mid 1970s. The growth of country has its one of the bases as infrastructure development which should be in both private and government sectors. They foresee it in a better way and decided to enter in to a market where they could achieve the top level, which was engineering and manufacturing of hydraulic and pneumatic cylinders. This provides solutions by hydraulic and pneumatic cylinders, truck tipping systems for the trucks and heavy industry machines and for army tanks and vehicles. Wipro Technologies From 1970s to 1990s: At that time Indian economy was state-controlled and the state remained hostile to the software industry through the 1970s. Import tariffs were high and software was not considered as a separate industry, so that exporters were considered as ineligible for bank loans. Government policy towards changed in 1984.Package of reduced import tariffs on hardware and software. This recognition of software exports asa "de-licensed industry", i.e., henceforth eligible for bank finance. This encouraged our Indian domestic players like Infosys, Wipro and TCS to concentrate in software industry very actively. The trend of growth rate of Indias economy demonstrates an upward trend. During the period of 1960 to 1980 the economy saw a growth rate of 3.5% due to the roles of major industries in India GDP. In the years from1980 to 1990 the growth rate showed a marked improvement of 5.4%. It was slightly lower in the period from 1990 to 2000 which was at 4.4%, and the reason behind this is those companies were already into the industry, quickly utilized the opportunity, others were struggling to come up. Then the start of 21stcentury till 2008 the economic conditions were favorable for this industry. The contribution towards countrys GDP was increasing year on year from 2000 to 2008. Then the world economic slowdown hit software industry in India and melted so many companies in the market. The phase 2000 to 2008 saw a huge improvement and the growth rate of GDP were marked at 6.4%. The IT/ITES industrys contribution to the countrys GDP has been steadily increasing from a share of 1.2percent in 1997-1998 to 5.2 percent in 2006-2007, according to NASSCOM-Deloitte study. The Indian Software Industry has grown from a mere US $ 150 million in 1991-92 to a staggering US $ 5.7 billion in1999-2000. No other Indian industry has performed so well against the global competition. According to statistics, Indias software exports reached total revenues of Rs 46100 crores. The total share of Indias exports in the global market rose from 4.9 per cent in 1997 to 20.4 percent in 2002-03. The Indian software industry was considered to be the biggest employer expected four million jobs in 2008. It accounted for seven percent of Indias total GDP in the year 2008.

Today, the Software Industry in India exports software and services to nearly 95 countries around the world. The share of North America (U.S. & Canada) in Indias software exports is about 61 per cent. In1999-2000, more than one third of Fortune 500 companies outsourced their software requirements to India. The software industry being the main component of the IT Industry in India has also helped the IT sector in India to grow at a good pace. As per the proceedings taking place in the software industry the future of the India Software Industry looks promising.

Political and Legal Environment:From 1970s to 1990s: The IT industry started growing under unfavorable conditions initially. Domestic markets were not favorable enough and the government policies toward private enterprise were completely unfavorable. The industry was begun by Bombay-based conglomerates which entered the business by supplying programmers to global IT firms located overseas. At that time Indian economy was state-controlled and the state remained hostile to the software industry through the 1970s. Import tariffs were high (135% on hardware and 100% on software) and software was not considered as a separate "industry, so that exporters were considered as ineligible for bank loans. Government policy towards IT changed in 1984. The Government has also played a vital role in the development of the India Software Industry. In 1986, the Indian government announced a new software policy which was designed to serve as a catalyst for the software industry. This was followed in 1988 with the World Market Policy and the establishment of the Software Technology Parks of India (STP) scheme. Package of reduced import tariffs on hardware and software (reduced to 60%). This recognition of software exports as a "de-licensed industry", i.e., henceforth eligible for bank finance. This encouraged our Indian domestic players like Infosys , Wipro and TCS to concentrate in software industry very actively. The trend of growth rate of Indias economy demonstrates an upward trend. In addition, to attract foreign direct investment, the Indian Government permitted foreign equity of up to 100 percent and duty free import on all inputs and products. After 1990s:When the liberalization took place, Indias Information technology had a huge advantage over it. Then onwards the boom started and the big players like Wipro, Infosys, TCS started being stable enough to survive in the industry. Liberalization gave them the opportunity to go global and to get their investment to expand their businesses in various sub sectors like BPO and KPO and consulting. Those companies were already into the industry, quickly utilized the opportunity, others were struggling to come up. Then the start of 21st century till 2008 the economic condition were really good for this industry

Wipro Technologies

The time line shows the consistent innovativeness of Wipro ltd throughout its journey. Wipro ltd was very quick to react for governmental or legal environmental changes. Those immediate responses helped it to build and grow its businesses to extreme level in several industries, in which they achieved and continuing in top players list. One of the best examples for this quick move or reaction towards legal or governmental environmental changes was to diversify in to IT hardware and later IT software industries. In 1977, IBM was in Development of the free Linux kernel is started by Linus Torvalds in Finland. These innovations are all related to software and hardware industry. Big players were able to change themselves according to the technical changes happened. They started providing their goods in a competitive price, so as to capture the market. In order to compete with the big players with the price and quality, everyone in the industry needs to change their technology. So the need of software and 7 Microsoft Windows operating systems become virtually ubiquitous on IBM PCs. The Year 2000 problem (commonly known as Y2K), the computer glitch disaster expected to happen on January 1, 2000 Instant Messaging and the buddy list becomes popular. AIM and ICQ are two early protocols. E-mail becomes popular; as a result Microsoft acquires the popular Hotmail.com webmail service. Businesses start to build E-commerce websites; E-commerce-only companies such as Amazon.com, eBay, AOL, and Yahoo! grow rapidly. The Java programming language is developed by Sun Microsystems. The development of Web browsers such as Netscape Navigator and Internet Explorer makes surfing the World Wide Web easier and more user friendly. Microsoft introduces Windows 95 and later Windows 98 to the market, which gain immediate popularity. The World Wide Web and HTML are created by Tim Berners-Lee and eventually displace the Gopher protocol. A situation, which it needed to leave from India, because of government regulatory rules, Wipro decided to enter Information Technology sector, by serving its domestic clients in IT Industry. They responded quickly and diversified into Information Technology Industry in 1979. Wipro began developing its own computers. In 1981 the launched the Hardware company which provided the computer peripherals. This was the first in a string of products that would make Wipro one of Indias first computer makers. Simultaneously in 1980 Wipro moved into software development and started developing customized software packages for their hardware customers. Technical Environment: Technical environment is an important entity in this industry. The technological innovations drove the companies to get various dimensions across the industries. After 1990 in India all the industries started realizing the importance of technology support to their businesses to improve their efficiency to survive in the competitive market. The competition mostly based on price and quality of the products. To handle the price sensitive customers the companies need to be cost effective in their operations and to be innovative enough to keep their customers happy in order to retain them. In all the industries new inventions started coming and the variety of products increased. The import of goods has been increased. Some technologies invented and improved during the 1990s:Software Interactive videodisk, to get in immediate contact with potential buyers Wireless data communication and portable computers, allowing field personnel to work office independent Decision-support tools, allowing decision-making to be a part of everybodys job Telecommunication networks, allowing organizations to be centralized and decentralized at the same time Expert systems, allowing generalists to perform specialist tasks Shared databases, making information available at many places Technological advancement favored positively to the IT industry. In the early 1990s concept like Business Process Re-engineering (BPR) and in later 1990s and 2000 the Enterprise Resource Planning (ERP) was new to the industry.Business Process Re-engineering (BPR):

Business process re-engineering (BPR) began as a private sector technique to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors. A key stimulus for re-engineering has been the continuing development and deployment of sophisticated information systems and networks. Leading organizations are becoming bolder in using this technology to support innovative business processes, rather than refining current ways of doing work Reengineering guidance and relationship of Mission and Work Processes to Information Technology. Business Process Re-engineering (BPR) is basically the fundamental re-thinking and radical re-design, made to an organizations existing resources. It is more than just business improvising. It is an approach for redesigning the way work is done to better support the organizations mission and reduce costs. Reengineering starts with a high-level assessment of the organizations mission, strategic goals, and customer needs.

The role of information technology:Information technology (IT) has historically played an important role in the reengineering concept. It is considered by some as a major enabler for new forms of working and collaborating within an organization and across organizational border. Early BPR literature identified several so called disruptive technologies that were supposed to challenge traditional wisdom about how work should be performed.High performance computing, allowing on-the-fly planning and re-visioning in the mid1990s, especially workflow management systems were considered as a significant contributor to improved process efficiency. Also ERP (Enterprise Resource Planning) vendors, such as SAP, JD Edwards, Oracle, PeopleSoft, positioned their solutions as vehicles for business process redesign and improvement. Enterprise Resource Planning (ERP):ERP is an organizations management system which uses a software application to incorporate all facets of the business, and automate and facilitate the flow of data between critical back-office functions, which may include financing, distribution, accounting, inventory management, sales, marketing, planning, human resources, manufacturing, and other operating units. ERP software, in turn, is designed to improve both external customer relationships and internal collaborations by automating tasks and activities that streamline work processes, shorten business process cycles, and increase user productivity. A method for standardized processing, an ERP software application can both store and recall information when it is required in a real-time environment. Companies often seek out ERP software systems to pin point and mend inefficiencies in a business process or when a number of complex issues exist in the business environment. ERP software systems are also implemented to enhance operational efficiencies, achieve financial goals, manage and streamline the companys operational processes, replace an existing ERP software system that is out of date or unable to handle a companys daily activities; or improve information management through better data accessibility, decreased data duplication and optimal forecasting features. Many business owners see ERP software systems to be critical to their business functions, as they allow companies to achieve absolute business process automation. While most companies use countless processes, activities and systems to run operations, workflows and procedures can go awry when it comes to todays highly competitive marketplace, thus automatic identification and tracking, allowing things to tell where they are, instead of requiring to be found hindering productivity, growth and profitability. As a result, the implementation of an ERP software application can result in increased productivity, reduced operating expenses, improved data flow, and optimal performance management. ERP software comes in many forms, including supply chain management, manufacturing, distribution, warehouse management, retail management, and point-of-sale software. So when these changes happened, Wipro ltd provided all kinds of software and did re- engineering processes. Then they diversified to consulting sector. In 2002 Wipro ltd started its Wipro consulting Services and earned Rs 2 crores in the first quarter itself. Six Sigma Process: On the other hand they improved their efficiency by continuously following Six Sigma Process. The word is a statistical term that measures how far a given process deviates from perfection. Six Sigma is named after the process that has six standard deviations on each side of the specification window. It is a disciplined, data-driven approach and methodology for eliminating defects. The central idea behind Six Sigma is that if you can measure how many defects you have in a process, you can systematically figure out how to eliminate them and get as close to zero defects as possible. Six Sigma starts with the application of statistical methods for translating information from customers into specifications for products or services being developed or produced. Six Sigma is the business strategy and a philosophy of one working smarter not harder. Problem solving using Six Sigma Six Sigma institutionalization Make Quality a culture within.

Six Sigma Consultancies at Wipro:Wipros Six Sigma consulting experience has peaked with the indigenous development of new methodologies that it takes to its customers. As Wipro continues Six Sigma consulting journey, it builds on its expertise and experience to provide enterprise-class coverage of topics in business process management and information technology systems integration. The focus is on supporting the project needs and is also integrated with other methods to support process needs. Currently there are over 200PMI certified consultants at Wipro. The Wipro quality consulting group trains in achieving the precision of Six Sigma with Wipros own methodologies, training capabilities and global experience. Wipro also helps in institutionalizing Six Sigma across the organization for transformation. Wipro provides consulting in institutionalizing an organization wide Six Sigma program that specializes in implementation across IT development, production support and core business operations. Wipro offers the following Six Sigma consulting services Consistently meet and exceed customer expectations Ensure robust processes within the organization Have products and services meet global benchmarks One sigma gives a precision of 68.27%., two sigma, of 95.45% and three sigma of 99.73%, whereas Six Sigma gives a precision of 99.9997%.Although 99.73% sounds very good, it slowly dawned on companies that there is a tremendous difference between 99.73% and 99.9997%. For example for every million articles of mail, the difference is between 66,738 lost items and 3.4 lost items.

Evolution of Six Sigma at Wipro:Wipro is the first Indian company to adopt Six Sigma. Today, Wipro has one of the most mature Six Sigma programs in the industry ensuring that 91% of the projects are completed on schedule, mush above the industry average of 55%. As the pioneers of Six Sigma in India, Wipro has already put around ten years into process improvement through Six Sigma. Along the way, it has scaled Six Sigma ladder, while helping to roll out over 1000 projects. The Six Sigma program spreads right across verticals and impacts multiple areas such as project management, market development and resource utilization. Six-Sigma at Wipro simply means a measure of quality that strives for near perfection. It is an umbrella initiative covering all business units and divisions so that it could transform itself in a world class organization. At Wipro, it means: Tangible cost savings due to lower application development cost for customer.

Social Environment:As time ran, the threat of new entrant in this industry is high because of low investment needs. So the existing companies need to come up with innovative solutions to attract and keep its customers and its shareholders to be sustained in the market. Then they came with Green IT solutions, which is eco friendly hardware components, reusable and made of low toxic materials. At the same time Wipro ltd was very clear about their path they had chosen and the position they wanted to maintain. They had financial services and Wipro net. When other players came in Wipro wasnt able to perform better, because the other players were having those businesses as their core, so they excelled in that. After all players came in, Wipro was not performing well. So the company decided to quit those two services in 2002.

Brief History

Wipro Ltd. started its journey in 1947 as a vegetable oil trading company (Western India Palm Refined Oils) in Amalner, Maharashtra, India. It was M. H. Premji, father of its current Chairman Azim Premji, who founded Wipro. After his sudden demise in 1966, his son, a Stanford University graduate in Electrical Engineering, took the onus of leadership at the age of 21. Azim Premji repositioned the company into a consumer goods company and started producing hydrogenated cooking oils, laundry soap, wax and tin containers. Later Wipro Fluid was set up, which started manufacturing hydraulic and pneumatic cylinders for the industrial trucks and heavy machines. In 1977, after IBM left Indian IT sector, Wipro entered into the market. It started developing its own computers within a couple of years Wipro Ltd. started selling finished products. It licensed technology from Sentinel Computers in U.S. Wipro is also the manufacturer of Indias first mini computers. In 1980, Wipro Ltd. moved towards software development, when they started providing customized software to their hardware customers or clients. This was just a beginning of a new era for Wipro. It spread its roots off shore in U.S. in 1992. By 2000, Wipro Ltd. managed to get enlisted on the New York Stock Exchange. Wipros evolution from inception is given at the end of this project.

Financials: Wipro Limited saw a stunning growth in terms of its revenue which soared up by 450% from 2002 to2007. In the quarter ended September 30, 2009, the IT Services business of Wipro Ltd. reported revenue of 49.96 billion with a growth rate of 5% year on year. It also recorded PBIT of 11.87 billion with a growth rate of 19% year on year. During the quarter, the operating income to the revenue was 23.8%. During the quarter, Wipro Ltd. also added 37 new clients to its list. Currently as of 2011 December, Wipro has employee strength of 120,000. Innovation at Wipro Ltd:As we enter the second decade of the 21st Century, change seems to be the only constant. This dynamic means that businesses are facing challenges and opportunities which are very different to what they were a decade ago or even a year ago. Product Engineering Solutions: Wipro is the largest independent provider of IT Services: Wipro provides complete range of IT Services to the organization. The range of services extends from Enterprise Application Services (CRM, ERP, e-Procurement and SCM) to e-Business solutions. Wipros enterprise solutions serve a host of industries such as Energy and Utilities, Finance, Telecom, and Media and Entertainment.

WIPRO MARKETS ITSELF

Wipro focuses largely on "pull" marketing initiatives, targeting prospective clients while they are searching for relevant IT information. Mostly this means Web-based marketing with four key components:

Search engine promotion Thought leadership content on leading IT portals and directories Web seminars and events Website content

Wipro's own Website is the fulcrum of the entire lead-generation program. The marketing team has invested heavily in creating a wide range of material to showcase company capabilities and successes, demonstrate thought leadership, and provide interactive opportunities for prospective clients to sample Wipro's wares.

Wipro uses special offers and more than 400 case studies to get visitors to demonstrate and register their specific interests. Comprehensive Web monitoring provides regular analysis of what is and is not working and what role the Web is playing in lead generation and relationship development.

Building on the "pull" elements, Wipro uses permission marketing to strengthen relationships and move prospects along the sales cycle. Specific initiatives include telesales, direct mail, and industry-based newsletters. In all cases, the marketing team relies on the prospect database to create carefully targeted lists based on incoming traffic, client profiles, and ongoing Web activity. This helps create the greatest possible impact from the limited "push" activities. Typical marketing campaigns today target as few as 30 to 50 accounts.

Many firms talk of a single view of the customer, yet just as many are saddled with disparate databases and uncoordinated marketing and sales activities. The common result is that some prospects are bombarded with conflicting messages through different channels while others simply fall through the cracks.Wipro faced exactly that challenge several years ago and invested in the creation of a single prospect intelligence database that provides a complete view of all marketing and sales interactions with prospect companies as well as extensive profile information. The database now includes detailed data on multiple contacts from almost every company in the Fortune 1,000 and more than 17,500 senior management contacts in all. The database is so effective that Wipro no longer buys lists of any kind to support its marketing efforts.

Results from Wipro's integrated lead-generation program have greatly exceeded expectations and created an extremely high return on marketing investment. Along with a surge in qualified leads has come a greatly accelerated sales cycle. The typical six- to nine-month sales cycle has been shortened to 30 days in some cases. Leads are converted to sales far more quickly because the targeted approach is more personalized and focused.The particular tactics at the heart of Wipro's program are well known, if not always well developed. No doubt Wipro has done a great job in improving its Website, developing newsletter and Web events, and targeting the right prospects. And it is certainly helped by being in a growing market. Yet the great power and the most important lessons of the program lie in its integrated nature and its disciplined execution.

INBOUND & OUTBOUND

Global Data Synchronization for Distributors

As a critical link in the supply chain, distributors today need to be aware of the industry-wide developments in the area of Global Data Synchronization, determine the business case for its adoption and finally chart out a roadmap for implementation.

Achieving Data Synchronization

Internal It Systems IntegrationCleanse data in catalogs

Make systems GTIN and GLN compliant

Implement a Product Information Management system

External Data SynchronizationEstablish a messaging system and a data pool compliant to EAN.UCC standards

Synchronize basic item data with enterprise master catalog with manufacturers and retailers

Syndicate the relationship dependent pricing and promotion data with retailers

Data AnalyticsBuild a Data Analytics and Decision Support System to provide A consolidated view of inventory

Measurement of inbound & outbound logistics metrics

Performance measure of promotional activities

MYTH 1: GDS is only for retailers and manufacturers.GDS is equally important for distributors. Aligning internal party and product data with upstream and downstream trading partners is essential for avoiding losses due to lack of accurate and timely product and party information.

MYTH 2: GDS only means basic item data synchronization with external trading partners.Internal synchronization of all IT systems is a necessary step before going for external synchronization.

MYTH 3: Internal synchronization of item and party information is important only for retailers and manufacturers.As a distributor you serve as a hub for many-to-many relationships between manufacturers and retailers (and hence you need to maintain information about both manufacturers and retailers). This is why your internal synchronization is extremely important for ensuring efficiency in logistics operations.

MYTH 4: Distributors should go for only promotion and pricing synchronization.It is true that promotion and pricing data are relationship dependent and hence needs to be synchronized between distributors and retailers. However, in order to sync these data, distributors should have access to updated and accurate basic item data which adhere to global standards as espoused by EAN and UCC. This requires that the distributors internal systems be in sync with those of the manufacturers and retailers data.

Wipro Service Offerings

Theme Story Distributors among Top 10 outsourcing players A large number of Wholesale distributors like Aramark, Sodexho Alliance and Ikon office solutions figured in the list of Outstanding Outsourcing service providers released by The International Association of Outsourcing Professionals (IAOP). The changing revenue mix and widening portfolio of services is redefining the role of distributors like never before.

Wholesale food distributors want to emerge as supply chain specialists managing all the core functions like warehousing, fulfillment, in bound logistics and store design for their customers. Food service distributors offer the broadest spectrum of services ranging from facilities management for big institutional clients to recipe management for independent restaurants. Electronic component distributors play a crucial role in the components supply chain by complementing their line card with other value added services like component selection, materials management, Vendor managed inventory, programming, environmental compliance and design services. Similarly building material suppliers offer project management and pre fabrication support to professional contractors thus playing a key role in areas that were traditionally owned by the construction company.

The success of many distributors in offering these value added services can be attributed to one or more of the following reasons:

Distributors have the opportunity to leverage traditional strengths in order fulfillment and logistics management to offer a host of supply chain services. Customers are increasingly willing to outsource non core activities to distributors. Distributors are uniquely positioned to know supplier innovation and also understand customer demand providing them with the ability to offer several demand generation, product installation and support services.

Technology can play a key role in helping distributors to offer several other value added services or scale up these services with greater confidence. Sometimes a distributors IT investment for internal process efficiency/ data accuracy can also enable him to offer a value added service. For example an electronic component distributors Product Information management investments also empowers the company to offer component information service as a fee based service to OEMs, contract manufacturers or Electronic Manufacturing Service (EMS) providers. Technology investments can also empower a distribution company to accomplish the following:

Provide Global Data Synchronization ( GDS ) as a value added service to customers Support VMI schemes serving as the single point of contact and contract compliance for big suppliers Compete with 3 PL players to provide order fulfillment and in bound logistics services

Distribution Framework

Common Product Catalog

Wipro can commission a pilot implementation on a pre agreed scope involving a few product categories, SKUs or operating companies and then engineer a full scale roll out.

Reverse logistics

Our reverse logistics solutions help seamless collaboration between retailers and suppliers by providing complete visibility and thus increasing reverse logistics velocity and consumer satisfaction. Wipros ready to implement portal solution encompasses efficient processes that aid in drastic reduction of inventory levels, minimize operational costs in real-time through automated workflow and improved inventory and resource utilization.

Centers of Excellence (CoE)

Wipros ability to provide business-focused solutions stems from the fact that Wipros delivery organization is supported by "Centers of Excellence" comprising of a dedicated team of domain experts and functional architects. This enables us to provide winning business solutions for the unique problems faced by Wipros clients and help them proactively respond to industry trends.

The CoE helps build Point Solutions and Frameworks with reusable plug and play components that help in developing high performance solutions to enable faster deployment and end-to-end verification & validation before final roll-out.

In Store

In Store CoE helps retail organizations stream line their store operations and benefit by improve customer retention and reducing shrinkage. The CoE offers its domain expertise in Point of Sale (POS) systems, Loss prevention, Global Data Synchronization and Customer Loyalty management. The CoE possesses expertise to help customers make build versus buy decisions and has developed frameworks and prototypes that streamline and standardize implementation processes.

Supply Chain Wipros Supply Chain activities encompass business consulting, end-to-end business process re-engineering, product evaluation and implementation. The CoE has competencies in Process Assessment, Contract Management, Supplier Management, CPFR, Demand Forecasting, Compliance (such as Sarbanes Oxley Compliance), Warehousing, Global Sourcing and Transportation.

Merchandising & Pricing

The areas of expertise of the Merchandizing & Pricing CoE include technology, domain and process consulting in merchandize planning, category management, price and markdown management and retailer-supplier collaboration.

RFID

Wipro RFID Competence centre provides a comprehensive portfolio of EPC/RFID solutions and services to meet the retailers mandate and to automate the business operations of CPG companies looking beyond compliance. Wipros services span the compete progression through building business case, RFID roadmap, integration and deployment.

Business Analytics

The Business Analytics CoE is focused on leveraging cutting edge analytical tools & technologies to facilitate better decision making across the complete value chain of CPG organizations. Wipro develops business cases and data models, leverages on in-house analytical expertise and builds best practices to measure and improve performance.

Trade Promotion Management

The TPM CoE offers a comprehensive approach for trade promotion business process assessment, gap identification and recommendations for improvement. Wipros services span from Trade Promotion Technology solution evaluation, enablement, deployment and help consumer goods companies reduce cost by managing Trade Promotion Administration and Analytics.

Manufacturing Execution Systems

The Manufacturing CoE has developed competence on ERP tools such as SAP, Oracle, JDE, Lawson, etc, and concentrate on building seamless integration of ERP with critical shop floor systems. As part of its offerings, it also provides Analytics and Reporting solutions focusing on area such as Manufacturing Intelligence and Dashboards. Diagrammatic Representation

SWOT Analysis

In this internal analysis usually SWOT analysis is used. It is an effective way to use this and will be easy to identify the companys strengths and weaknesses. The opportunities and threats we found in the external analysis will be matched here and the companys core competencies also considered and will work on the improvement area. WIPRO Technologies:

Strengths: Global R&D facility Continuous Innovation: Wipro has global Research and development facility. It keeps on innovating new products and services in order it retain its customer and to attract new clients and shareholders in the market. Its global R & D is a very strong strength for it. Vast clientele base: Its large client base throughout the world gives strength for it. In its starting years itfirst headed into hardware business, then it started providing software solutions to them then diversified as a company. The global clients of Wipro Technologies are always strength for it. The down turn in one economy can be pacified by performing well in other economy.High skilled employees across industries: Wipros one of the main strength is its highly skilled employees. The HR practices they follow are very much suitable and sustainable, where in IT industry the attrition rate is very high. Economies of scale - Low cost advantage: As they have already had their domestic as well as their global clients, this is an advantage over all. The economies of scale can be achieved easily when compared to start ups. For example when they started the Wipro Consulting Company, it earned 2 Crores within its first quarter of operations, because the client base is huge and the economies of scale are also high for it.Strong brand value: As Wipro Technologies is the 2nd largest IT end to end service provider in the world; it has attained its brand value. So customers will prefer Wipro technologies for its quality. Client satisfaction - Quality products & Concentrating on mature markets: Domestic market is huge but is underdeveloped. If Wipro Technology considers capturing the remaining under developed rural areas like sub metros, it could have a very strong base in India and can improve its share and can be a No 1 player in IT sector.Low operating margin of the other group companies: Even though IT sector creates huge profits for Wipro Ltd, the other group companies like customer care and Lighting is just accounting for only 9% for the total revenue. So a conglomerate company like Wipro will get affected if one of its main sectors fails. There are other players who are especially in those same sectors who already excelled in that sector like HUL, ITC etc.Delivery capabilities: Wipro Ltd achieved all these because its continuous assured quality providing capacity and commitment. The clients are more satisfied with Wipro. Alliances with top global companies GE, Cisco, EMC, Microsoft, Oracle and SAP: To be a global player, a company needs to have alliance with various other companies to provide on time service and delivery. Certainly its one of its main strengths. The network strength is very high. Green thoughts - Eco friendly products: Where Wipro operates, the innovation keeps on gaining its own value among people. Its green thoughts like Green IT that is reusable computer peripherals and less toxic material usage for its production are their strength. The green office area an innovative thought, which benefits its businesses. Customized products: It provides customized products for several industries like aerospace, Engineering Infrastructure, Medical equipments; Lighting solutions etc are its strengths.

Weaknesses:Huge potential in domestic market: It has potential to capture more market share in Indian It industry. So it has both global and domestic opportunity to expand.

Threats:Increasing cost of human capital: As it is well known about IT and BPO industry, the attrition rate is always high. So hiring new people is a huge cost incurring process every year. Then the Training and Development cost is also highly cost counting part in IT industry. Intense rivalry in IT Industry: The rivalry among Indian It industry is very high, because the entry Barrier is very low. It needs a low investment cost to start an IT company.Environmental change: Changing Environmental conditions like economic meltdown and Changing technology is a big threat to companies in IT industry. It will face fierce competition in the areas of e- business and ASP services. Slowdown in the banking, financial services and insurance (BFSI) sector. Other conglomerates like ITC, Reliance, Aditya Birla group may enter into various industries and take over the benefits of WIPRO. Exchange rate: This can be a threat to the company as the company is making profits due to the high exchange rate and if this rate comes down in future it can lead to a major problem for the company. Changing Laws and Regulations: Government rules and regulation change may be a threat for IT industry companies, exactly for Wipro Technologies, which relies more on overseas projects.Strategy of Wipro Technologies: In this changing day to day technological environment the blurring of geographic boundaries and the need to expand in global emerging markets, business leaders at the worlds largest companies see strategic innovation as crucial to their future growth plans, according to an exclusive Wipro-Forbes Insights

Opportunities:Huge global market: As it is already a renowned global company, it has a huge scope in global market. The company has entered into the global market so now its the biggest opportunity available to the company.Emerging technology: As it has skilled work force, it always have opportunity to come up with new technologies.In the consultancy area and BPO area: As Wipro Consultancy is in the list of top consultancies, it could achieve more with its vast client base. In BPO industry it is in 2nd top company in India. It could achieve to come to first place.The in-depth insight study examined and summarized the views of over 300 CEOs and other C-level executives at global enterprises.

SuggestionsAdopt the Dynamic High Technology Strategy: Speed-to-market is necessary for successful innovation. Getting a product or service swiftly out to market is a critical business innovation tactic. Cost remains the biggest hurdle to fostering innovation. It will be always barriers for R & D. Issues related to the regulatory environment, and finding and retaining top talent. Paying attention to best practices is the most effective way to foster innovation. Other innovation tactics included technology, data-based decision making, and customer collaboration. Clear business case for using green practices. Green business practices as a part of their corporate innovation strategies. Green IT is a priority for more than three quarters of companies. Increase Global Presence: China holds the greatest opportunity, followed by India, Southeast Asia, and Eastern Europe. More collaborations with other players; reduce dependence on only few players

Conclusion:Till today Wipro has been known for being very process oriented with a focus on quality and cost savings. Wipro long term strategy should be to create a brand image and be known for innovation. Wipro should invest in R&D and Market research, so that it is able to innovate new solutions for clients to cut costs or reduce time to market or improve reliability.

References:

http://wiki.answers.com/Q/What_is_Wipros_mission_and_vision#ixzz1ottCfYGM http://www.anil2u.info/2010/03/top-100-it-companies-rank-wise-list/http://www.indianmirror.com/indian-industries/information-technology.htmlhttp://books.google.co.in/books?id=EPai4FgFA2YC&pg=PA165&lpg=PA165&dq=bargaining+power+for+wipro&source=bl&ots=rlezwgfQVN&sig=LJY5BIW7tS3DPu9mNub0_HY4OW4&hl=en&sa=X&ei=_fNZT-7wIc_JrAf1jsGHDA&ved=0CEUQ6AEwBA#v=onepage&q&f=falsehttp://www.answers.com/topic/wipro-technologieshttp://www.equitymaster.com/research-it/sector-info/software/http://www.thehindubusinessline.com/companies/article2048647.ecehttp://wipro.co.inhttp://economictimes.indiatimes.com/wipro-ltd/infocompanyhistory/companyid-12799.cmshttp://www.wipro.com/documents/resource-center/It_investments_and_business_value.pdf