Bengaluru-based IT major Wipro overhauls its business unit and service lines to revive growth under its new CEO Thierry Delaporte. The organisational changes will take effect on January 1, 2021.
In an email to employees, Delaporte, who took over as CEO in July 2020, said, “For long now, our growth has been largely dependent on the US market. It is important that we broad base our growth. The new model seeks to achieve just this.”
The US accounts for about 58.4 percent of its revenues for the quarter ending September 2020.
Under the new model, the current structure of seven Strategic Business Units, Service Lines and nine geographies will be replaced with four Strategic Market Units (SMUs) and two Global Business Lines (GBLs).
The SMUs, organised by markets, will own the P&Ls for Wipro whereas delivery and practices will be aligned with GBLs, which are organised based on capabilities.
The two GBLs are iDEAS (Integrated Digital, Engineering & Application Services) and iCORE (Cloud Infrastructure, Digital Operations, Risk & Enterprise Cyber Security Services).
iDEAS will be led by Rajan Kohli, who currently heads Wipro Digital, and Nagendra Bandaru, President - Cloud, IT, Infrastrucutre and Digital Operations & Platforms, will lead iCORE.
The four SMUs are Americas 1, Americas 2, Europe and Asia Pacific Middle East Africa (APMEA). While Americas 1 and Americas 2 are organised by sectors, Europe and APMEA are structured by countries, the mail said.
Srini Pallia, President - Consumer Business, will lead Americas 1, Angan Guha, head, BFSI, will head Americas 2, and N S Bala, President - Energy, Natural Resources, Utility & Construction, will be in charge of APMEA.
The leader for Europe will be appointed in the coming weeks, the mail added.
These leaders will be supported by a newly created role of Chief Growth Officer, who will be announced soon. “The Chief Growth Officer will play a key role in driving large deals and strengthening relationships with hyper-growth partners, besides overseeing marketing, advisor/analyst relationships, sales excellence and sales enablement,” Delaporte added.
Other executives, CFO Jatin Dalal, and human resources chief Saurabh Govil will continue in their positions.
The leaders of the business units and functional heads will report directly to Delaporte.
Milan Rao, who heads Marketing, Innovation and Tech and Bill Stith, healthcare head, will be leaving the firm on December 31, 2020. BM Bhanumurthy, COO and Anand Padmanabhan, heading Business Development and Strategies, will retire in the next few quarters.
CEO's five key focus areas
These changes are in line with the five-point strategy laid out by Delaporte.
During the earnings call on October 13, he laid out five priorities -- winning large deals, focus on scale, offerings, talent, and a simpler and leaner organisation. He then said that the work has already begun on this front and is moving rapidly as they could.
The newer model with fewer layers, he said in the email, will bring Wipro closer to consumers and accelerate growth. Wipro has been lagging behind its peers in terms of growth. The aim, clearly, is to improve that.
"This is a defining period for Wipro, and the industry. The structural changes I outline today are critical to accelerate our growth and reclaim our leadership position in the pantheon of global IT services companies," he said in the mail.