VALUE CHAIN ANALYSIS OF WIPRO LTD.

Human Resources

Wipro Technologies is a global services provider delivering technology-driven business

solutions that meet the strategic objectives of our clients. Wipro has 38 ‘Centers of
Excellence’ that create solutions around specific needs of industries. Wipro delivers
unmatched business value to customers through a combination of process excellence,
quality frameworks and service delivery innovation. Wipro is the World's first CMMi
Level 5 certified software services company and the first outside USA to receive the
IEEE Software Process Award.

 Employee Feedback & Communication:

Wipro as an organization believes in Connecting and Listening to people.

• Channel W the employee portal, has been creating a de facto ‘Wipro community’
by allowing Wiproites to interact, disseminate information on things they most
cherish. The intranet ensures that the entire organization is wired and there is
meaningful exchange of information / views across domains and geographies.
Key sections encourage employee participation and communication through
bulletin boards and chat rooms among other things.
Employee feedback and continuous improvement is a cornerstone of our progress.
We believe that the most worthwhile inputs for betterment of people practices
come from employees themselves, as they are the customers. We have various
processes in place, which ensure that employee feedback reaches senior
management.
• W10 is a dipstick survey with 10 questions which checks the satisfaction level on
issues, which affect the health of the workplace and supervisory effectiveness.
The feedback given by employees is shared with management through scorecards.
• Employee Perception Survey: We conduct employee satisfaction surveys every
two years. Employees are encouraged to give comments and rank the organization
 on certain areas /satisfaction drivers. Top management then prepares a timely
action plan to address the areas of concern and task forces are created to focus on
improvement areas and implement action.
• Action plan (Meet your people program) - The W10 scores provide the trigger to
managers /supervisors to meet their teams and resolve issues which create
dissatisfaction in the workplace.
• Skip Level: We believe that team feedback is an important parameter of
leadership development as well as team cohesiveness. A Skip level meeting is a
formal team feedback session facilitated by HR as well as the supervisor’s
supervisor. This is an institutionalized process in Wipro and managers see great
merit in it as they get feedback from the team that affects team performance and
can make mid-course corrections to improve effectiveness at work.
• New Managers Assimilation Program (NMA): Since teamwork is highly valued,
assimilation of a new manager in team play is a very critical part of his/her
induction to the company. It enhances team bonding and aims at consensus and
collation of concerns, the challenges ahead, "must-know-about-manager" etc.
from the team.

Corporate Culture

Everyday at Wipro is challenging and thought-provoking. What is tested is your drive,

enthusiasm and initiative. New ideas are appreciated and innovation is encouraged- if you
have a suggestion and a plan to take it forward- you will get all the necessary support to
transform it into action.

• Beyond Work
There is a whole lot that Wiproites do beyond the job per se. We ensure that you get an
opportunity to ‘express’ and ‘enjoy’ yourself at the workplace!
We engage in activities with great energy, free spirit, and commitment to human values
and this has played a significant role in our success story so far. Active, unhindered
participation brings us closer to each other and to ourselves and making work fun and
meaningful.
There are numerous events, which are organized for our people throughout the year.
These span our people’s interests, the festivals that they celebrate and the fun we ensure
they have! Whether it is the Dandiya festivities, the World Environment Day celebrations
or a chat with Sri Sri Ravishankar on our employee portal Channel W- it is all happening
at Wipro!

Workplace Diversity

Wipro seeks to build a climate that welcomes, celebrates, and promotes respect for the
entire human race. In our commitment to diversity, we welcome people from all
backgrounds and seek to include knowledge and values from various cultures. The
concept and dimensions of diversity are advanced and incorporated into every aspect of
the organization. Dimensions of diversity include, but are not limited to, the following:
race, ethnicity, religious belief, sexual orientation, sex/gender, disability, socioeconomic
status, cultural orientation, national origin, and age. The implementation of the
commitment to Diversity rests with the organization as a whole. However, in addition to
this personal commitment and involvement, we have instituted a Diversity Committee to
implement effectively the philosophy and intent of the organization with respect to
diversity.

Business Level Program

Wipro Leaders’ Qualities Survey

Wipro Leaders’ Qualities Survey, which started in 1992, is one of our oldest leadership
development initiatives. It has successfully contributed in our endeavor to nurture top
class business leaders in Wipro. We have 8 Wipro Leadership Qualities, which are based
on Wipro vision, values and business strategy. In order to identify and help leaders
develop these competencies we adopt a 360-degree survey process. This is an end-to-end
program, which starts with the obtaining of feedback from relevant respondents and ends
with each leader drawing up a Personal Development Plan (PDP) based on the feedback
received. The PDP is developed through “Winds of Change” which is a seven-step
program that helps in identifying strengths and improvement areas, and determining the
action steps.

Leadership Lifecycle Programs

Wipro has developed an approach for Life Cycle Stage Development Plan. Training and
development programs at various stages have been designed by mapping the
competencies to specific roles. Competencies specify the specific success behaviors at
every role.
• Entry-level program (ELP) - The program covers the junior management
employees with the objective of developing managerial qualities in the employee.
The target group is campus hires and lateral hires at junior level.
• New Leaders’ Program (NLP) - It is popularly known as NLP and aims at
developing potential people managers, who have taken such roles or are likely to
get into those roles in the near future.
• Wipro Leaders’ Program (WLP) - This program is for middle level leader with
people, process, business development and project management responsibilities.
These leaders are like the flag bearers of Wipro values and Wipro way of doing
business. They not only walk the value talk but they also have a responsibility of
assimilating new leaders with the Wipro culture.
• Business Leaders’ Program (BLP) - This is for senior leaders with business
responsibility. At this level, people are trained up for revenue generation; and
Profit & Loss responsibilities. The program covers commercial orientation, client
relationship development, and team building and performance management
responsibilities among other things.
• Strategic Leaders’ Program (SLP) - This program covers top management
employees. The focus is on Vision, Values, Strategy, Global Thinking and Acting,
Customer Focus and Building Star Performers. Wipro ties up with leading
 The Leadership Development Framework

business schools of international repute to conduct this program for Wipro

leaders.

 Managing Performance

The Wipro philosophy has a clear thrust on performance enhancement. We have a

systematic and robust process for planning, implementing, reviewing, and evaluating
performance of our employees. The entire process is online, which ensures scalability and
standardization. We ensure that employees receive periodical feedback and that the
Development Plan forms a significant part of the entire performance management
process.

 Reward Philosophy

Exemplary performance is unquestionably rewarded at Wipro. There are various awards

and recognition programs, which have been institutionalized across businesses. We also
constantly endeavor to enhance our reward program to align it with changes in employee
motivators and business drivers.

ORGANIZATIONAL CAPABILITY
Culture
"People are our greatest asset" is much more than an adage for us.
"People come first" is an emotion experienced by every Wiproite.

We make working at Wipro an enjoyable experience by providing the right atmosphere

of work and career Growth. Our initiatives like 360 degrees appraisal system and skip
level feedback encourage feedback at all levels. Open-minded approach in all our
endeavors is aimed at bringing out the best in you. We have created a very fair and
straightforward (transparent / open) atmosphere that decides your position only on merits
and not by extraneous factors.

'What the employees feel about us' is a matter of utmost concern for us and an employee
perception survey annually conducted by an external agency helps us understand the
requirements for a high employee morale. The feedback thus received is converted to
actionable to ensure employee satisfaction.

We at Wipro strive to provide an environment that is stimulating with high levels of

motivation, empowerment and recognition, removing obstacles that hinder creativity. In
this energized atmosphere we share successes while setting new standards of excellence

Wings Within

You also have access to various job opportunities within Wipro itself. This would enable
you to pursue careers of your choice in the Organization. Your career at Wipro is what
you make of it. It is a tool that gives you flexibility to apply for the job of your choice
and map your own career. Very few organisations can match Wipro's capability to offer
the kind of flexibility and opportunity to pursue multiple careers and unhindered growth,
while you continue to work in the same organisation.

Development and Training

We at Wipro believe in individual growth and overall development. Potential is

recognized and opportunities for further learning are provided. Our training programs are
on par with latest manufacturing practices and developments taking place in and around
the world to empower you as a professional in the ever changing world of manufacturing
practices.

Financial Performance

Wipro's revenues have grown at a CAGR of around 25 per cent between 1999 and 2005,
while net profit has grown at an impressive CAGR of 110 per cent in the same period.
Most of this growth has been driven by earnings from overseas markets, the share of
which in the total revenue has grown from only 35 per cent in 1999 to nearly 75 per cent
in 2005.The company has consistently maintained high profitability levels. It has
managed to earn handsome returns over equity and capital employed, with its returns on
capital employed and on net worth at 30.6 per cent.The company has een very
conservative in its financial structure and as continued to remain low on debt even though
t could have improved its return on equity through gearing.

Wipro Leaders Program

We not only groom your technical talents but also bring out the leader in you. Our
Leadership Program gears you up to take on the challenge for successfully heading large
and strong teams. The program is designed to identify the specific actions and attitudes
that constitute the Wipro leader's qualities. It examines how each manager rates against
these qualities, provide an understanding of how the required skills and competencies can
be developed and plan what each individual can do to strengthen his or her leadership
qualities.

Recognition

Your hard work and contribution never go unnoticed at Wipro.The size we have grown to
and the diversity of people has given rise for a need to introduce awards. At every step of
success there is an award awaiting you. The challenges we encounter, motivates us to
accomplish greater feats and the comforts of rewards and recognition comes as a package
Long Services Award

We at Wipro take pride in our long serving colleagues. They are a major force behind our
success. We recognize their contribution through a comprehensive reward programme -
Schemes include holiday packages with special facilities.

Benefits

The governing theme in our organisation is the well being of employees. The benefits we
offer them are on par with the best available.

Our Compensation package is among the best in the industry and it is aimed at retaining
existing talent. The package caters to all positions across Wipro. Rewards for each
position is based on performance, potential, criticality and market value.

We have a comprehensive medical assistance program that covers the whole gamut of
medical expenses you and your family incur.

Our reimbursement scheme provides you tax shelter on quasi-official expenses.

Your growth in the company will be complemented by your own self-development. Our
educational assistance plan offers you all encouragement in pursuing the course of your
interest. Our leave policy also includes a sabbatical to pursue higher studies related to
your profession.

Our responsibility towards new employees doesn't stop at salaries and compensation
alone. We offer all possible help to facilitate their settling down. We provide interest-free
loan mainly intended to cover housing deposit or the purchase of a two wheeler. We also
provide contingency loans for your marriage, illness or death of a close family member.

As a part of employee empowerment, we offer stock options to deserving employees. The

Wipro Employee Stock Option Plan (WESOP) allows us to make employees share with
us the rewards of success.
Our other facilities include credit cards for all our employees as per the policy. Monetary
benefits apart, we take interest in the personal well being of our employees. We have a
facility wherein your domestic chores will be taken care of through an external agency,
ensuring that with us you don't need to worry about all those boring routines like payment
of bills, personal travel bookings etc. Not to forget shuttle services to our development
centers and canteen facility. ( We also provide transport facilities to our development
centers and cafetaria at our facilities)

All these in addition to a host of deferred benefits like provident fund, gratuity and
pension plan.

Wipro Cares

We at Wipro strongly believe in giving back to society what we owe it. Our service
doesn't stop at providing charity. We have faith in human effort and we believe that it is
not just what you do, but how you go about doing it. 'Wipro Cares' brings together
individuals with a common aim to serve society. (contribute to society)

Employees are the lifeblood of the organization and we inculcate the sense of service in
all our teams. Our ultimate aim is to harness our complete strength to contribute to the
upliftment of the downtrodden in our society.

People Capability Maturity Model (PCMM)

People Capability Maturity Model (PCMM, People CMM, P-CMM) is a maturity

framework that describes the key elements of managing and developing the workforce of
an organization. It describes an evolutionary improvement path from an ad hoc approach
to managing the work-force, to a mature, disciplined development of the knowledge,
skills, and motivation of the people that fuels enhanced business performance.

People CMM is a framework that helps organizations successfully address their critical
people issues. Based on the best current practices in fields such as human resources,
knowledge management, and organizational development, the People CMM guides
organizations in improving their processes for managing and developing their
workforces. The People CMM can also be used by any kind of organization as a guide for
improving their people-related and work-force practices.

Wipro's beliefs include the following:

1. Respect for employees
2. Achieve and maintain a position of leadership
3. Complete all tasks in a superior manner
4. Govern individual and company relationships with care
5. Be close to the customer
6. Measure effectiveness by long-term profits

"It is essential that we consciously internalise our beliefs and be fanatical about
constantly practising them. If we fail to honour our beliefs, we will lose credibility,
not only as individuals, but also as an organisation"

Integrity is important to Wipro

Wipro's leadership qualities:

1. Commitment
2. Clear and customer-focused vision
3. Energised and can energise others
4. Self-confidence is key
5. Commitment to excellence
6. Development of star performers and teams

The family owns 75% of the equity, making it still a family-run business, but it has
an uncanny ability to identify and recruit top talent. It really invests in people to
develop their skills. The culture of the firm is one of openness and honesty.

Wipro was the first company in India to initiate an employee stock ownership
program.
Strategies

For the kinds of strategies adopted and efforts on innovation by Wipro Infotech, it should
not be surprising that the company has assumed a significant place in offering a balanced
portfolio of product R&D services, solutions, and IT infrastructure to telecom service
providers and the networking industry. Leveraging the opportunities available in the
Indian market, in the last five years Wipro Infotech's business has grown multifold-more
than 40% y-o-y. It has made inroads into different industry segments like telecom,
enterprise, BFSI, and SMBes. The company has also executed projects on technologies
like carrier Ethernet, unified communications, WiMesh, unified infrastructure, and green
data centers.

Wipro Infotech pursued various models to retain the integration costs at same levels, in
spite of an increase in input costs, and offer best bit solutions that meet varying customer
needs. The company's ability to provide E2E solutions across the industry and technology
segments armored with its 360-degree services portfolio to support all initiatives of
clients is a strong reason for its achievements.

Says Sanjesh Gupta, vice president, system integration, Wipro Infotech, "As part of our
business strategy, we have built strong competencies in the area of system integration,
project management and remote management services, to give peace of mind to our
customers and help in their business growth and transformation."

The requirement for improved network and advanced IT infrastructure in the booming
telecom industry and other verticals, IT adoption in the retail sector, government's
initiatives to end the digital divide, e-governance in government offices, etc, are making
the market ripe for companies like Wipro Infotech.

Strategic Presence

Wipro's significant presence in important technology areas like OSS/BSS solutions for
wireline and wireless operators, IP core networking, and optical networking across
verticals in India and across geographies is a strategic advantage in order to provide E2E
solutions. In the service providers segment, it provides services related to IT
transformation, and most OSS/BSS solutions. Its first big contract in providing OSS/BSS
solutions was from Aircel. The nine-year outsourcing contract worth $660 mn in January
this year was for running Aircel's IT operations as well as transforming it.

Padmanabha TK, GM, telecom networking integration practice, Wipro Infotech, says, "IP
has overtaken voice network and voice traffic from overall bandwidth perspective, and
the industry is looking at IP as one core network to run all services." So, leveraging the
opportunity, Wipro offers services and solutions for the IP core network, which has been
the telecom industry's migration plan for the past couple of years.

It's large presence across geographies helps the company's strategic business plans.
Headquartered at Bangalore, Wipro Infotech serves customers in India through a network
of 22 offices and 170 service locations across the country. Apart from its presence in the
Middle East and ASEAN, Wipro has also expanded to Africa and Australia recently.
Though it does not directly go to the market in Africa, it works with local partners there.
In the Middle East, including Dubai and Saudi Arabia, it has a large, direct presence with
a joint venture called Wipro Arabia in Saudi Arabia. The company also has offices
coming up in Ethiopia, Kenya, among others. Along with its local expertise and
capabilities in these countries, Wipro will now be in a position to leverage its global
structure in order to offer its customers cost-efficient support, development and delivery
in a competitive environment.

Expanding Footprint

The company has made some strategic acquisitions to add more strength to its products
and services portfolio, primarily in the intellectual property space. In August 2007, Wipro
made a very significant move by acquiring Infocrossing, in order to provide end-to-end
IT infrastructure management solutions like managed services and data centers for the
US. Suresh Vaswani, joint CEO of Wipro's IT business, says, "Total outsourcing
services, which include our IT infrastructure services, grew 75% in the past year (FY
2006), proving that global clients are increasingly realizing the value of these services." It
was a move to broaden the data center and mainframe capabilities and deepen its
presence in the US. This was the biggest ever acquisition to date made by Wipro which
restructured the IT infrastructure outsourcing environment.

An independent research report published by Julie Giera with Eric G Brown, Stephanie
Moore and Robert Muhlhausen of Forrester Research, in November 2007 observes:
"With the acquisition of Infocrossing's data centers and infrastructure outsourcing
business, Wipro has gained instant credibility and a strong US presence from which to
continue its expansion of services beyond applications development and maintenance."

The report also brought out the risks associated with the acquisition: "Wipro still has a lot
to learn about managing data centers, servers, and storage-and will have to deal with all
of the complexities and risks associated with owning IT assets. This deal, however,
should be a wake-up call for Wipro's competitors."

In early 2006, Wipro acquired 100% stakes of cMango, a Sunnyvale, California-

headquartered company in line with Wipro's strategy to invest in areas where it can
establish leadership through differentiated service lines and domain knowledge. Sudip
Nandy, the then chief strategy officer, Wipro Technologies said, "This acquisition is a
significant milestone in our strategy toward creating a strong value proposition in
emerging areas in a growth business like technology infrastructure services."

In 2006, Wipro Technologies acquired a Finnish company called Saraware Oy, which is a
provider of design and engineering services to telecom companies. This acquisition along
with 200 specialists of the company has added strength to Wipro in the radio networks
and secure mobile platforms domain. It was a strategic move to expand Wipro's presence
in the Nordic region, which gulps close to 50% global market share in the total wireless
infrastructure market.

At the end of 2005, Wipro Technologies acquired Austrian firm NewLogic, a

semiconductor design services company with intellectual property (IP) cores for complex
wireless applications like wireless LAN and bluetooth. It added strength to Wipro's own
portfolio of IP cores and patents in wireless and wireline technologies areas. The
acquisition also brought 25 patent filings and over 20 customers in the product-
engineering domain to Wipro.

When it comes to strengthening its capabilities to offer best-fit services, Wipro doesn't
shy away from making more acquisitions and alliances, expanding its footprint across
geographies. Sanjesh Gupta, vice president, system integration, Wipro Infotech, says,
"We are open to acquisitions. We are also aggressively pursuing new alliances in the area
of IBMS, high speed broadband (through Fiber to the Home FTTH) and voice NGN."

As part of its new initiatives in the last one year, Wipro has identified certain key
emerging technologies like IPTV, TelePresence, new generation data centers, unified
communications, open source (grid computing), and security, which are fueling demands
of the industry. Wipro has made substantial investment in setting up CoEs (center of
excellence) around these technologies. The connected environment enables
demonstrating the concept to customers and partners. It is also used for training and
development of our engineers across the country.

Innovation Exercise

Padmanabha TK says, "Now IP migration wave is going on, and to help service providers
in this migration, our innovation team is substantially investing with Rs 30 mn in the
current year alone. And on Ethernet-based optical solutions, Rs 20 mn is being pumped
for innovation. On the IMS part, we have CoE in Electronic City Bangalore, where more
than Rs 50 mn has been invested overall."

"These are only project-specific investments. Actually, the company has organization-
wide initiatives on the innovation part. Each of the LoB (line of business) heads has his
specific budgets allocated from a group perspective," adds Vivek Sharma, general
manager, networking, Wipro Infotech.

Its innovations exercises are aligned with a lot of growth opportunities available in India.
Ericsson is soon expected to announce in this quarter that India is the biggest contributor
to their global revenues. BSNL has recently launched its $9 bn tender for 3G and GSM
requirements. These are all clear indicators of the opportunities waiting to be tapped in
India.

Padmanabha TK of says, "The money that the telecom industry is talking about could be
anywhere near $25 bn in the next three years. You cannot see that kind of number
possibly anywhere in the world, except probably China. But China did not go through the
same GSM standard as the world has gone through. They will require a lot of specialized
services. India will go the same way as the European countries went for 3G. It will be
straightforward."

Coupled with its innovation exercises, its go-to-market strategy also helps further its
agenda. It is closely working with its partnerships, whether it is Cisco Systems for core IP
network or ADVA for optical network-related businesses. Similarly, it intends to enter
partnerships in the future, for eg, Oracle for OSS/BSS solutions or HP for network
management systems. Padmanabha TK says, "We have a lot of strategic partnerships and
are building applications and specialized solutions for customers to differentiate between
themselves."

On the other side of the go-to-market strategy, from an enterprise point of view, Wipro is
also helping its customers like Aircel and Bharti Airtel who want to get into the
enterprise business. "They want to sell their bandwidth to enterprise customers. Legally
we can't resell bandwidth; we work on a tripartite go-to-market partnership. So we
worked with Bharti Airtel in their business to Toyota Kirloskar Bank, HDFC bank, etc.
We also help them with our solution for example for disaster recovery and network
expansion," adds Padmanabha TK.

Future Plans

Wipro has big growth plans in India. Padmanabha TK says, "I think we would be blind if
we ignore that India is the hottest place as far as telecom spending is concerned. Nowhere
else in the world so many new licenses have been issued. The market will continue to buy
telecom and integration services for the next three years at least." Wipro understands that
the market in India is now matured. Apart from India, the Middle East is another business
focus. He further says, "At present we are strongly focusing on wireless and wireline
business wherein a lot investment is taking place and subscriber growth is huge."

Apart from this, Wipro has big plans for investing in new technology areas to stay ahead
in its competency and capabilities. Sanjesh Gupta, of Wipro says, "We are planning to
invest in new technology areas like IPNGN, eco-friendly (green) data centers, optical
network, and speech recognition and speech bio-matrix." Further, it is exploring new
geographies for business expansion and investing significantly in building system
integration expertise in emerging markets.

Wipro's wireline business is BSNL-centric which has got 50 mn copper lines. Other
customers like Bharti and Reliance don't have wireline, network on the same scale and
are trying to work on wireless technologies. Hence, going forward, Wipro will continue
to focus on both wireline- and wireless-based broadband solutions, which will come after
rollout of 3G.

Hiccups
Despite all its achievements, Wipro has challenges in its telecom and networking
business. But the challenges are not unique to the company alone. Though it wants to
have a very strong presence in high technology areas such as telepresence, and
videoconferencing, it is faced with certain challenges. "As bandwidth prices continue to
be high in India compared to other countries like the US, China, and Australia, it is
having a negative impact on enterprises making investments on high technology areas
like telepresence, videoconferencing, among others," says Padmanabha.

According to the Forrester Research report in November 2007, "In the next seven to ten
years, the entire IT industry will evolve to a new set of business models that center on IT
services and service delivery. Wipro has an opportunity-if it chooses to seize it-to become
one of the more innovative market leaders in the next five years."

Despite the hiccups common to all high technology areas, Wipro doesn't have the
problem of years of legacy operating processes in IT infrastructure outsourcing services,
as the company has newly entered the infrastructure outsourcing market. So the company
should utilize this opportunity to build strategically advantageous service and delivery
models to best meet emerging complexities in the IT infrastructure outsourcing services
for various verticals including the telecom industry.