BANGALORE: Software firm Wipro will shed departments and collapse its sprawling, complex internal structure into a few focused units as part of new CEO TK Kuriens plan to grow sales and grab market share. Wipro, which shocked corporate India last week by removing its joint CEOs and appointing Kurien, is attempting to fend off aggressive rivals such as Cognizant and also compete better with domestic rivals Tata Consultancy Services and Infosys.
Its traditional model was built around several departments targeting the same customers for different kinds of business. We plan to have one axis from three earlier, said a top official involved with the restructuring. Most importantly, the plan is to shift the entire decision-making to the markets. Decisions will be taken in the markets, not in Bangalore, the official added.
By doing this, Wipro hopes to empower its top leaders to take critical decisions and risks without waiting for long approvals.
2012 is the make-or-break year for TCS, Infosys, Cognizant and Wipro, said a senior executive at one of the top three Indian tech firms. While TCS wants to be the largest low-cost provider, Infosys has ambitions to become an Accenture and Cognizant wants to grow the fastest, he added.
The structure will have mini CEOs heading different vertical businesses with increased risk-taking powers and decision-making. In the existing model, there are at least three sets of departments selling and interfacing with customers.
One-Wipro formula being promoted
Take, for instance, a customer like Citibank. Three separate departments banking, sales and software testing have mandates to sell business to the bank directly.Everybody has been selling to customers who, in turn, do n! ot see u s as One Wipro, another official familiar with these changes said on conditions of anonymity.
Over the next few weeks and months, Wipros top brass, including billionaire founder Azim Premji , the new CEO Kurien and others will identify leaders who can play these roles and be designated as presidents of different business verticals. In an interview with ET last week, Premji said he wants Wipro to become one of the top five global services companies in the next few years.
The joint-CEO model worked well in certain cases and now for the new phase, we have to turbo-charge our performance and position ourselves well to capture the next phase of growth. This is what I expect. No more, no less, Premji had said.
Technology services companies such as Wipro sell two kinds of solutions broadly. A horizontal service line such as software testing or back-office service can be sold to any customer irrespective of the industry. As part of the vertical structure, companies such as Wipro focus on building domain specific expertise and sell solutions.
In the new structure, all functions of sales, consulting, BPO and technical services such as software testing will have to align themselves more closely with these mini CEOs. Currently, there are at least seven senior vice-presidents heading the verticals of energy and utilities, retail and government, media and telecom, technology, manufacturing, healthcare and finance.
Its traditional model was built around several departments targeting the same customers for different kinds of business. We plan to have one axis from three earlier, said a top official involved with the restructuring. Most importantly, the plan is to shift the entire decision-making to the markets. Decisions will be taken in the markets, not in Bangalore, the official added.
By doing this, Wipro hopes to empower its top leaders to take critical decisions and risks without waiting for long approvals.
2012 is the make-or-break year for TCS, Infosys, Cognizant and Wipro, said a senior executive at one of the top three Indian tech firms. While TCS wants to be the largest low-cost provider, Infosys has ambitions to become an Accenture and Cognizant wants to grow the fastest, he added.
The structure will have mini CEOs heading different vertical businesses with increased risk-taking powers and decision-making. In the existing model, there are at least three sets of departments selling and interfacing with customers.
One-Wipro formula being promoted
Take, for instance, a customer like Citibank. Three separate departments banking, sales and software testing have mandates to sell business to the bank directly.Everybody has been selling to customers who, in turn, do n! ot see u s as One Wipro, another official familiar with these changes said on conditions of anonymity.
Over the next few weeks and months, Wipros top brass, including billionaire founder Azim Premji , the new CEO Kurien and others will identify leaders who can play these roles and be designated as presidents of different business verticals. In an interview with ET last week, Premji said he wants Wipro to become one of the top five global services companies in the next few years.
The joint-CEO model worked well in certain cases and now for the new phase, we have to turbo-charge our performance and position ourselves well to capture the next phase of growth. This is what I expect. No more, no less, Premji had said.
Technology services companies such as Wipro sell two kinds of solutions broadly. A horizontal service line such as software testing or back-office service can be sold to any customer irrespective of the industry. As part of the vertical structure, companies such as Wipro focus on building domain specific expertise and sell solutions.
In the new structure, all functions of sales, consulting, BPO and technical services such as software testing will have to align themselves more closely with these mini CEOs. Currently, there are at least seven senior vice-presidents heading the verticals of energy and utilities, retail and government, media and telecom, technology, manufacturing, healthcare and finance.
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