Wipro Shifts Focus to Winning Deals in Artificial Intelligence and Cloud: A Strategy Redefined by Jatin Dalal, 2023
Dalal emphasized that during the previous three years, Wipro’s business from Europe increased from $2 billion to over $3 billion.
Wipro plans to concentrate on areas like AI and cloud, given that customers are cutting back on specific discretionary spending and global macroeconomic headwinds are impacting the revenue of IT businesses. According to Jatin Dalal, CFO of Wipro, the company is heavily investing in people and technology to create a more flexible and effective organization. Wipro will continue to be focused on speeding its transformation.
“Yes, we do see a normalization of tech spending after a significant acceleration in recent years, but there are other growth areas like AI and cloud transformation and our focus will be to maximize wins in these areas,” the author said.
Dalal emphasized that during the previous three years, Wipro’s business from Europe increased from $2 billion to over $3 billion. “Europe is a great example of how our transformation has been successful and how our business model has evolved to enable us to win significant transformation deals, benefit from market consolidation, and deepen our relationships with current clients.”
The IT behemoth with headquarters in Bengaluru has purchased two European businesses in the past three years: Capco for $1.45 billion and 4C, one of the biggest Salesforce partners in the UK, Europe, and the Middle East. According to experts, both purchases were considered part of Wipro’s ambition to grow in Europe.
Wipro is benefiting from the success of its European operations. In the fourth quarter of FY23 and FY23, Europe was Wipro’s fastest-growing area, with sales increasing by 12.3% Y-o-Y in FY23 and 9.5% Y-o-Y in Q4 constant currency terms. Europe saw a 4.1% YoY growth in Q1 of FY24.
Regarding the effect of acquisitions on margins, Dalal stated that Wipro’s strategic acquisitions are all a part of the company’s long-term strategy to become the go-to resource for addressing its clients’ most challenging issues. “These are investments made for the future and are not tactical investments,” he remarked.
He said, “As an example, the volume of synergy deals that Capco and Wipro have won together continues to accelerate, giving an impetus to the overall growth of our banking and financial services sector.”
He responded, “Wipro’s focus is to improve the uptime and productivity of our entire workforce.” in response to the query on raising employee productivity. Our strategy is built on long-term high performance, and we understand the value of rewarding team members who regularly achieve at the highest level. Increased automation utilization also helps with this.
Speaking of sizable contracts, Dalal claimed that Wipro has seen a steady increase in signing sizable agreements. We recorded a considerable transaction total contract value (TCV) of $2.3 billion in FY’22. We have signed 55 significant transactions for a total of $3.9 billion in FY23, a 66.5% YoY increase. Additionally, we completed ten critical transactions for a combined $1.2 billion TCV in Q1 of FY24.
Amid the constant evolution and expansion of the digital landscape, global information technology leader Wipro is moving towards a more refined focus on artificial intelligence (AI) and cloud computing. Jatin Dalal, Wipro’s Chief Financial Officer, has laid out a comprehensive plan to steer the firm in this dynamic direction, setting the stage for its foreseeable future in the IT world.
This strategic pivot aligns with the industry-wide surge in demand for AI and cloud services, amplified by the ongoing digital transformation across all sectors. Today’s Enterprises are leveraging AI and cloud technologies to streamline operations and reduce costs, fuel innovation, improve customer experience, and create new business models.
“AI and Cloud are the main drivers of digital transformation. There is an increasing need for such solutions across the globe as businesses strive to become more agile and resilient,” said Dalal.
Wipro, a frontrunner in the IT sector, aims to solidify its foothold in the AI and cloud space and take a larger share of the global IT market. The company has keenly observed the changing trends and requirements in the worldwide market and recognized AI and cloud-based services as the new battleground.
Under Dalal’s guidance, Wipro has invested heavily in developing cutting-edge AI tools and building robust cloud infrastructure while upskilling its workforce to ensure the delivery of top-notch services to its clients. The company is also fostering partnerships with leading tech firms, which is essential to expanding its portfolio and capabilities in AI and cloud services.
Furthermore, Wipro is focusing on securing significant deals in these domains. The company has adopted a proactive approach in bidding for large-scale projects around the world that revolve around AI and cloud-based solutions. They are eyeing opportunities across various sectors, from healthcare and education to finance and ecommerce. This strategy reflects Wipro’s commitment to its clients and aspiration to be a global leader in AI and cloud solutions.
It is also important to note that this shift does not mean a complete departure from other areas of Wipro’s business. As Dalal has pointed out, “While we strengthen our presence in AI and cloud, we are also continuously improving our other IT services. We aim to offer comprehensive solutions that meet the varied requirements of our clients.
The shift towards AI and cloud computing has its challenges. There are issues of data security, privacy, and regulatory compliance that need to be addressed. However, Dalal believes that Wipro needs to be better equipped to handle these challenges.
“Wipro has a rich history of adapting to market changes and setting industry standards. Our strong ethical framework and commitment to regulatory compliance put us in a good position to navigate these challenges,” Dalal said.
Dalal’s vision for Wipro is forward-looking and adaptable, preparing the company to take full advantage of the possibilities offered by AI and cloud technologies.
To conclude, the strategic refocusing on AI and cloud computing demonstrates Wipro’s agility in responding to global market trends. It shows how the company is keeping up with the industry evolution and trying to lead it. Under Dalal’s leadership, Wipro is well on its path to achieving its goal of being at the forefront of the AI and cloud revolution, contributing to the next wave of digital transformation.
