Escolar Documentos
Profissional Documentos
Cultura Documentos
Assignment – I
On
Principles of Management
INTRODUCTION
Wipro:
Building a Global B2B Brand
Indian company is now global, and plays in every major outsourcing category; spreading the
value around by Demir Barlas, Line56.
Monday, March 07, 2005 Until recently, both conventional wisdom and market share
revealed that the big, strategic outsourcing contracts went to the likes of IBM, EDS,
Accenture, HP, CSC BearingPoint, et al. Then Indian company Wipro turned up on an IDC
vendor ranking chart in the same box as CSC. Wipro got into e-business fairly modestly, as
an offshore center to which U.S. and European companies could send IT customization work
and lower-level support functions. But over the years Wipro has diversified to encompbutt
higher value-added business process outsourcing (BPO) and consulting roles as well. It's part
of a larger trend in which Indian companies, specifically Wipro's peers, are shaking off their
image as IT sweatshops (the atbreastude was captured in a reader e-mail from Gilles Pardon
of SoftDatabase, who wrote that Indian companies "are still just able to write lines of codes
or duplicate Western technologies"). Click here to find out more!
Wipro's customers, though, enjoy many services. Currently AT&T, GM, Microsoft, Pitney
Bowes, Thames Water, Friends Provident, and Lehman Brothers work with Wipro in all four of
its offering areas: BPO, business applications, custom applications, and IT infrastructure.
Interestingly, in none of these cases did the customer sign on for all four offerings. GM, for
example, started out in just the custom applications area and subsequently expanded.
Forrester Research notes that Wipro adds a lot of value and expertise past cheap, basic IT
labor that some global outsourcing opponents stereotype the Indian company as providing.
"Wipro clients see additional application maintenance productivity of 10% to 15% from
added familiarity with systems; another 10% to 15% raise in productivity after applying
Wipro's CMM-based methodology and consolidating redundant programs applications; and
yet another 3% to 30% productivity improvement thanks to process automation and tools,"
reads a note from Forrester.
Wipro has made a big commitment to those higher-value echelons of its offering. The
company has trained 4,000 employees in Six Sigma and has 700 PMI certified consultants.
Furthermore, Wipro is hiring consultants and other employees all over the world. The
company has three development centers in North America and four in Europe. It has over
5,000 employees based in those two geographies. Given these figures, it's just as baseless
to accuse Wipro of enacting a scheme to suck jobs away from Americans as it would be to
accuse a U.S. multinational with plenty of Subcontinental presence and hiring power of doing
the same to India.
Wipro is really no different than other multinational. It happens to be based in India, as its
main compebreastors happen to be based in the U.S.; but, no less than those
compebreastors, its success grows the pie for a worldwide body of consultants,
programmers, and, of course, customers who receive the benefits of Wipro's expertise and
can thus better serve their own employees and customers.
INDUSTRY ANALYSIS:
An ITSMA Brand survey among 400 US-based IT CXOs and decision makers, conducted in
2006, showed that IBM Global Services had the strongest mindshare among all IT companies
globally. It had the highest unaided awareness at 27.5% whereas the second-in-line
Accenture
only had 8.3% unaided awareness.
Customer Expectations:
According to the ITSMA Brand Equity study the IT service provider selection process
revealed 6 important considerations for prospective clients. These are:
1. IT firm must have the requisite abilities to deliver results, collaborate with clients and
meet quality expectations.
2. Selected firm must help client to fulfil multiple organizational goals: a) Finding
growth opportunities and boosting competitive advantage, b) agility in adapting
business processes to changing market scenarios, integrating business and IT strategy,
and adapting IT infrastructure to changing market requirements, and c) risk and cost
mitigation by following quality processes.
3. Clients use multiple service providers, as they want to spread their risk by working
with several vendors.
4. Some clients are willing to pay premiums for exceeding service level agreements.
5. Clients do not require IT service providers to support only their specific products.
Many technology companies market themselves as knowing their product offering or
technology the best. While this is a valid strategy, there may be no competitive
advantage here as other firms can also put forth the same claim.
6. Clients are increasingly willing to offshore non-mission critical activities in pursuit of
cost savings.
Wipro draws its competitive advantage vis-à-vis the other Indian IT service providers from
five specific differentiators:
Technological
Excellence:
The biggest differentiator for Wipro against its Indian competitors is that “Wipro entered
IT services through the engineering and route”, given its entry into hardware in the 80s
and then later to positioning itself as an engineering lab for hire to the IT multinationals
that entered India in the 90s. The “lab-on-hire” business was eventually scaled up and
today accounts for one-third of Wipro’s revenues, making it the world’s largest third
party R&D provider.
Innovative
Solutions:
Wipro also prides itself as being a centre for innovative excellence and offers its clients
customized innovative technological and process solutions. In 2000, Wipro set up an
Innovation Initiative with an internal innovation council, which worked like an internal
venture capital fund. Today there are 800 people working on such innovative ideas. This
approach has helped the company to position itself as an innovator rather than a
commodity provider of technological products.
Operational
Excellence:
Over time Wipro has come to stand for operational excellence. The commitment to
quality has been a critical part of Wipro’s product offering and Wiproites say that “Six
Sigma is big in Wipro across the company, whether it is BPO or IT Services or R&D. The
company is very process-oriented and focused on operational excellence”. Today, Wipro
has built up its reputation and credibility by being a stickler for process excellence and
delivering on quality commitments is a key brand benefit.
Global
Footprint with Emerging Market Knowledge:
Wipro’s global footprint is also an important differentiator among its Indian rivals,
especially given its higher portfolio split towards emerging markets. The Asia-Pacific
(APAC) region contributes to $1 billion in revenues and is considered to be a key
differentiator vis-à-vis Infosys.
A lot of emerging market clients, especially in India, the Middle-East and South Africa
are interested in Wipro not just developing technological solutions but also bringing their
developed market knowledge in retail, finance and telecom to manage their business
processes better. Other American clients such as Cisco and Microsoft have gone on
record to say that they would prefer to work with Wipro given its 60-year presence in
India and the Middle-East.
Company
Culture of Linking Values to Business Performance:
Wipro’s cultural fit with its clients is also important in the self-selection process. Wipro’s
company culture is “less flashy and less aggressive” 5 than some of its Indian rivals. This
culture resonates with Wipro’s clients in the manufacturing and retail sector who prefer a
more laid-back approach at building a relationship. The company’s cultural tone has been
set right from the top, with Chairman Premji often being quoted as saying that the brand
Wipro is all about “humility”.
Mandala: The Strategym event was later rechristened as Mandala signifying the confluence
of thought leaders, customers & Wipro to share views & best practices on innovation.
Mandala was also used as a forum to showcase how Wipro “applied innovation” to its
customers.
SWOT ANALYSIS
The Wipro Limited - SWOT Analysis company profile is the essential source for top-level
company data and information. Wipro Limited - SWOT Analysis examines the company’s key
business structure and operations, history and products, and provides summary analysis of
its key revenue lines and strategy.
STRENGTHS:
• Reasonable Prices
WEAKNESSES:
• Lack of competition
OPPORTUNITIES:
• Dive salvage business (Introduction letter and direct mail to local insurance
adjusters)
Scope of the Report:
- Provides all the crucial information on Wipro Limited required for business and competitor
intelligence needs
- Contains a study of the major internal and external factors affecting Wipro Limited in the
form of a SWOT analysis as well as a breakdown and examination of leading product
revenue streams of Wipro Limited
-Data is supplemented with details on Wipro Limited history, key executives, business
description, locations and subsidiaries as well as a list of products and services and the
latest available statement from Wipro Limited
Reasons to Purchase:
- Support sales activities by understanding your customers’ businesses better
- Qualify prospective partners and suppliers
- Keep fully up to date on your competitors’ business structure, strategy and prospects
- Obtain the most up to date company information available
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.
Summary:
Positioning Wipro with the statement “Applied Innovation” had an impact on the awareness
levels vis-à-vis competition as it articulated a powerful differentiator. The focused, low-cost,
high-impact branding exercise undertaken by Wipro through innovative marketing channels
moved Wipro to a new level as reflected in the Brand Audit for Oct 06-Jan 07 by Penn,
Schoen and Berland Associates which showed that Wipro ranked second only to IBM in
favorability amongst prospective clients. A limited marketing budget, which was a fraction of
what global competition had deployed, proved to be a driver of innovation rather than a
handicap for Jessie Paul and the Wipro marketing team.