Wipro announces new operating model, to restructure its business

As part of the changes, Wipro’s COO Bhanumurthy and President Anand Padmanabhan will retire over the next few quarters.
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Global Information Technology services major Wipro has announced a major restructuring of its business in a bid to have a simpler operating model. Effective January 1, 2021, Wipro will replace the current structure of various strategic business units, service lines and geographies with four Strategic Market Units (SMUs) and two Global Business Lines (GBLs). This is the first restructuring exercise announced by Wipro’s new Chief Executive Officer (CEO) Thierry Delaporte, who indicated when he took over as CEO earlier this year, that he was looking to simplify operations of the IT major. As part of the changes, Wipro’s Chief Operating Officer (COO) Bhanumurthy and President Anand Padmanabhan will retire over the next few quarters.

The SMUs will be organised by markets and GBLs by capabilities. Wipro said in a statement that while the SMUs will own the Profit and Losses (P&Ls), delivery and practices will be aligned with GBLs. The four SMUs will be Americas 1, Americas 2, Europe and Asia Pacific Middle East Africa (APMEA). While Americas 1 and Americas 2 will be organised by sectors that the company operates in, Europe and APMEA will be structured by countries.

Americas 1 will include sectors such as healthcare & medical devices, consumer goods & life sciences, retail, transportation & services, communication, media & info services, tech products & platforms and Latin America. Meanwhile, banking, securities, investment banking & insurance, manufacturing, hi-tech, energy & utilities and Canada will come under Americas 2. The third SMU will be Europe, which will include six regions: UK and Ireland, Switzerland, Germany, Benelux, Nordics and Southern Europe. Finally, the fourth SMU will be APMEA, which will include 6 regions: Australia & New Zealand, India, Middle East, South East Asia, Japan and Africa.

The SMUs in Europe and APMEA will be responsible for all industry sectors in those regions.

Wipro has also announced the formation of two global business lines (GBLs). The first is iDEAS (Integrated Digital, Engineering & Application Services), which will include domain and consulting, applications & data, engineering and R&D and Wipro Digital. The second GBL is called iCORE and includes Integrated Cloud Infrastructure (CIS), Digital Operations (DOP) and Risk & Enterprise Cyber Security Services (CRS).

The changes are effective from Jan 1, 2021 and until then, Wipro will continue with its current operating model and external reporting for the quarter ended Dec 31, 2020.

According to ET Now, Americas 1 will be led by Srini Pallia, who is currently President and Global Head of Wipro’s Consumer Business Unit. Americas 2 will be led by Angan Guha, Senior Vice President and Global head of the BFSI Business Unit. NS Bala, who is currently President of the Energy, Natural Resources, Utilities & Construction divisions will lead APMEA, while the leader for Europe is yet to be appointed.

In terms of the GBLs, Rajan Kohli, who currently heads Wipro Digital and Wipro’s consulting business globally will lead iDEAS and iCORE will be led by Nagendra Bandaru the current global president of two key strategic business units of Wipro Limited — cloud and IT infrastructure services (CIS) and digital operations and platforms (DOP).

Informing employees about the restructuring, Thierry reportedly said in an email that the company’s growth has largely been dependent on the US market and that it is important for them to broaden its growth, which is what the new operating model intends to achieve.

“Besides ensuring adequate sector and domain focus in our go-to-market and execution, the new operating model will help drive growth in non-US markets. The current complex delivery structure with multiple delivery units will be replaced by a simple delivery model that will yield economies of scale,” ET Now quotes the CEO as writing.

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