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Wipro to adopt new operating model from January 1

Wipro is bringing in a new operating model from next year under which its business will be restructured into four strategic market units (SMUs) and delivery model will be simplified as the IT giant looks to drive growth in the non-US markets.

In an email to employees, Wipro CEO Thierry Delaporte said the company’s growth has been largely dependent on the US market, and noted that it is important that the company broad base its growth. “Effective January 1, 2021, we will replace the current structure of seven Strategic Business Units, Service Lines and nine geographies with four Strategic Market Units (SMUs) and two Global Business Lines (GBLs)…Besides ensuring adequate sector 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,” he said. Delaporte said the current complex delivery structure with multiple delivery units will be replaced by a simple delivery model that will yield economies of scale.

The four SMUs identified 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 would be structured by countries. APMEA will include Australia and New Zealand, India, Middle East, South East Asia, Japan and Africa.

The two GBLs include iDEAS (Integrated Digital, Engineering and Application Services) and iCORE (Integrated Cloud Infrastructure (CIS), Digital Operations (DOP), Risk and Enterprise Cyber Security Services (CRS).

Delaporte, who took charge as Wipro CEO in July this year, said he has held meetings with clients, partners and employees.

“I have no doubt that an operating model marked by fewer layers, empowered P&L owners, and clearly defined ownership of performance metrics, underpinned by a simpler and more customer-focused delivery model will help us meet our desired outcomes,” Delaporte said.

He added that Srini Pallia will lead Americas 1, Angan Guha Americas 2, and N S Bala APMEA. The leader for Europe will be appointed in the coming weeks.

Rajan Kohli will lead iDEAS and Nagendra Bandaru will head iCORE. These leaders will share their organisation structures in due course, he added.

The SMU and GBL leaders, along with Functional Heads, will report to Delaporte.

Delaporte said the company has also created the new role of Chief Growth Officer, which 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, he said.

In a regulatory filing, Wipro said it is bringing in an operating model “marked by simplicity” to bring the company closer to its customers.

“The changes are effective from January 1, 2021. We will continue with our current operating model and external reporting for the quarter ended December 31, 2020,” the filing said. Deccan Herald

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