Wipro Explained
Wipro Limited (; stylized in lowercase title) is an Indian multinational corporation that provides information technology, consulting and business process outsourcing services. It is one of the six leading Indian Big Tech companies. Wipro's capabilities range across cloud computing, computer security, digital transformation, artificial intelligence, robotics, data analytics, and other technologies, servicing customers in 167 countries.[4]
History
Early years
The company was incorporated on 29 December 1945 in Amalner by MH Hasham Premji as Western India Vegetable Products Limited, a manufacturer of cooking oils.[5] In 1966, after Hasham Premji's death, his son Azim Premji dropped out of Stanford University and took over as chairperson at age 21.
The company changed its name to Wipro Products Limited in 1977, followed by Wipro Limited, a syllabic abbreviation of the original name, in 1982.
Shift to IT
In the 1980s, recognizing opportunities in computer hardware and software, the company established subsidiaries Wipro Infotech and Wipro Systems. In 1981, Wipro developed the first Indian minicomputer based on the Intel 8086 chip in an IISc lab.[6] [7] The software division began in 1984 with the development of a spreadsheet and word-processing suite but shifted to offshore software development in 1990.[8]
By the mid-1990s, Wipro had become one of India's leading manufacturers of personal computers, peripherals, and medical diagnostic equipment.[9] In 1998, the company reported being the second-largest software exporter from India,[10] and gradually focused more on the higher-margin software services sector, which became the primary source of its profits.[11]
During the dot-com boom of the early 2000s, Wipro became the most-valued company in India, with a peak market capitalization three times that of the next largest listed company, Infosys. Consequently, Azim Premji's net worth increased significantly, making him the richest Indian for five consecutive years.[12] [13]
In 2004, Wipro became the second listed Indian IT company to report annual revenues exceeding US$1 billion.[14] By 2006, approximately 30% of its total revenue came from product engineering R&D services.[15]
In 2007, Wipro introduced a line of supercomputers known as Wipro Supernova.[16] In 2011, Wipro, in collaboration with the Indian Space Research Organisation (ISRO), developed India's then-fastest supercomputer, SAGA-220, which was deployed at the Vikram Sarabhai Space Centre.[17] [18]
In 2012, Wipro demerged its non-IT businesses into a new private company named Wipro Enterprises. Prior to this demerger, these businesses—primarily in consumer care, lighting, furniture, hydraulics, water treatment, and medical diagnostics—accounted for about 14% of Wipro's total revenues.[19]
Operations
Wipro operates in over 60 countries and serves clients across multiple industries, including financial services, healthcare, manufacturing, retail, and telecommunications. The company has presence in key markets such as North America, Europe, and Asia-Pacific.
Major services provided by Wipro are:[20] :
- IT Services such as software development, system integration, and IT consulting. [21]
- Business Process Services including customer service, finance and accounting, and human resources. [22]
- Consulting involves advising companies on business strategies, technology solutions, and organizational improvements. [23]
- Engineering Services including product development, research and development, and technical support. [24]
- Cloud Services such as cloud migration, management, and infrastructure services. [25] [26]
Acquisitions
Over the past two decades, Wipro has made acquisitions across various industries, including technology, consulting, and cybersecurity. Significant deals include the purchase of Appirio for $500 million in 2016, Capco for $1.45 billion in 2021, and Rizing Intermediate Holdings for $540 million in 2022.
! Year !! Company !! Country !! Industry !! Acquisition Cost| 2006 | cMango [27] | United States | Technology | $20 million |
| 2012 | Promax Applications Group [28] | Australia | Analytics | A$35 million |
| 2015 | Designit [29] | Denmark | Design Consultancy | €85 million |
| 2016 | Appirio [30] | United States | Cloud Services | $500 million |
| 2020 | Rational Interaction [31] | United States | Digital Customer Experience Consultancy | Not Disclosed |
| 2021 | Capco [32] | United States | Technology Management Consultancy | $1.45 billion |
| 2021 | Ampion [33] | Australia | Cybersecurity | $117 million |
| 2021 | LeanSwift [34] | United States | Cloud Transformation | Not Disclosed |
| 2022 | Convergence Acceleration Solutions (CAS) [35] | United States | Consulting | $80 million |
| 2022 | Rizing Intermediate Holdings [36] | United States | SAP Consultancy | $540 million |
| 2024 | Aggne Global Inc [37] | United States | Insurtech | $66 million | |
Listing and shareholding
Wipro's equity shares have been listed on Bombay Stock Exchange since 1946 and the National Stock Exchange of India where it is a constituent of the NIFTY 50. The American Depositary Shares of the company are listed on the New York Stock Exchange (NYSE) since October 2000.[38]
As of March 2024, the promoter group headed by Azim Premji held a 72.88% stake in the company, while the remaining shares were with public shareholders and an employee trust.[39]
Percentage of Holding 31 Mar 2024 [40] | Promoters and Promoter Group | 72.88% |
| Foreign Institutional Investors (FIIs) | 9.36% |
| Retail Investors | 8.39% |
| Insurance companies | 4.60% |
| Mutual Funds | 3.53% |
| Others | 1.24% |
| Total | 100% | |
|---|
Employees
As of 31 March 2024, it had 234,054 employees, out of which 36.6% were women. The attrition rate was around 14% during FY 2023-24, against 19% in previous financial year.[41]
| Financial Year ended | Count of total Employees |
|---|
| March 2024 | 234,054 |
| March 2023 | 248,813 |
| March 2022 | 236,204 [42] |
| March 2021 | 201,665 |
| March 2020 | 182,886 [43] | |
List of CEOs since 1981:[44]
Sponsorships
CSR activities
- Mission10X: Launched in 2007, Mission10X was aimed at improving the employability of engineering graduates by enhancing the quality of engineering education through faculty and student training. [49]
- Wipro Earthian: This sustainability education program engages students and teachers in activities related to environmental sustainability, particularly water, waste, and biodiversity.[50]
Criticism
In February 2023, Wipro faced criticism for reducing the annual salary package of new hires by 50%. This decision affected around 4,000 new hires, leading to backlash from employee unions like NITES, which called the move unfair and lacking transparency. Wipro stated that the revised offer was due to changing business needs and provided an immediate opportunity for candidates to start their careers.[51] [52]
Notes and References
- Web site: Consolidated Financial Statements for Q4FY24 . Wipro . 20 April 2024.
- News: Wipro workforce shrinks for sixth quarter in a row with net decline of 6,180 employees in Q4 . 20 April 2024 . CNBC TV18 . 19 April 2024 . en.
- News: Bloomberg Billionaires Index - Azim Premji. Bloomberg.com. 28 May 2019. 29 May 2019. https://web.archive.org/web/20190529204321/https://www.bloomberg.com/billionaires/profiles/azim-h-premji/. live.
- Web site: Fitch Affirms Wipro at 'A-'; Outlook Stable . 2023-09-28 . www.fitchratings.com.
- Web site: About Wipro. wipro.com. 22 September 2017. https://web.archive.org/web/20170922040551/http://www.wipro.com/about-Wipro/. 22 September 2017. live.
- News: Wipro's early years . 16 July 2024 . Rediff . 20 July 2006.
- News: Indian IT's pioneering pivot . 16 July 2024 . The Times of India . 9 April 2023.
- News: Wipro: From vanaspati to IT leader . 16 July 2024 . The Times of India . 16 April 2004.
- News: The PC in India The Desktop Story . 16 July 2024 . Dataquest . en.
- News: Scaling New Highs . 17 July 2024 . Business Standard . 17 August 1998.
- News: Wipro software exports increase 49 per cent . 17 July 2024 . Rediff.
- News: Wipro becomes most valuable Indian company, Azim Premji the richest Indian ever . 16 July 2024 . India Today . 6 March 2000 . en.
- News: India's $30 Billion Man . 16 July 2024 . Forbes . en.
- Web site: Wipro Joins Billion Dollar Club. 17 April 2004. https://web.archive.org/web/20220421110405/https://www.financialexpress.com/archive/wipro-joins-billion-dollar-club/104100/. 21 April 2022.
- News: Wipro plans further expansion in Chennai . 4 August 2024 . Business Standard. 31 January 2007.
- News: Wipro Infotech launches supercomputers . 19 July 2024 . The Economic Times . 12 September 2007.
- News: Chari . Sridhar K. . Wipro building India's fastest supercomputer for space agency . 19 July 2024 . Mint . 3 January 2011.
- News: Isro stakes claim to India's fastest supercomputer . 19 July 2024 . Business Standard. 3 May 2011.
- News: Wipro gets shareholders nod for demerger . 19 July 2024 . Business Standard. 29 December 2012.
- Web site: Wipro - History, Financial Information, Strategy . 20 August 2024 . Fincash.com.
- Web site: Wipro Limited (WIPRO.NS) Company Profile & Facts - Yahoo Finance . 20 August 2024 . Yahoo.com.
- News: BPS industry in India: Wipro business process management unit close to hitting 2020 target of $1 billion - The Economic Times. Economic Times . 20 November 2017.
- News: Wipro: Wipro Restructures To Create 4 Business Lines - Bengaluru News. Times of India. 28 February 2023.
- News: Wipro: Hcl, Tcs, Wipro Top Global Engg Services Cos In ’22 - Bengaluru News . Times of India. 14 September 2023.
- News: Wipro Google Cloud partnership: Wipro expands partnership with Google Cloud to adopt AI tech Gemini. Business Standard India. 12 August 2024.
- News: New model to sharpen Wipro’s cloud focus. Economic Times India. 1 March 2023.
- News: Wipro acquires US-based cMango for $20mn. Business Standard India. 20 February 2006.
- News: Wipro to acquire Australia's Promax Applications Group for Rs 192 crore. The Economic Times.
- Web site: Wipro to acquire Designit for €85 million. 9 July 2015.
- Web site: Why IT Services Giant Wipro is Snapping up Appirio for $500 Million.
- Web site: Wipro Digital acquires CX consulting firm Rational Interaction. 24 February 2020. www.consulting.us. en. 25 February 2020. 25 February 2020. https://web.archive.org/web/20200225095613/https://www.consulting.us/news/3805/wipro-digital-acquires-cx-consulting-firm-rational-interaction. live.
- News: India's Wipro to buy Capco for $1.45 billion – TechCrunch. en-US. TechCrunch. 2021-03-04. 4 March 2021. https://web.archive.org/web/20210304171047/https://techcrunch.com/2021/03/04/wipro-capco/. live.
- News: Wipro Agrees To Buy Australian Cybersecurity Provider; Stock Gains. 1 April 2021. 18 August 2021. 17 April 2021. https://web.archive.org/web/20210417095250/https://www.bloombergquint.com/markets/wipro-agrees-to-buy-australian-cybersecurity-provider-stock-gains. live.
- Web site: Wipro acquires US-based LeanSwift; to expand its cloud transformation biz. 16 December 2021. Business Today. 16 December 2021. en. 16 December 2021. https://web.archive.org/web/20211216115734/https://www.businesstoday.in/latest/corporate/story/wipro-acquires-us-based-leanswift-to-expand-its-cloud-transformation-biz-315781-2021-12-16. live.
- News: Wipro acquires consulting firm Convergence Acceleration Solutions for $80 million. 12 January 2024. Moneycontrol. 12 April 2022. en.
- News: Ishwarbharath. Sai. Wipro to acquire SAP Consulting firm Rizing for $540 million. 12 January 2024. The Economic Times. 26 April 2022.
- News: Wipro to acquire US-based insurtech company Aggne Global for $66 million. 13 February 2024. Moneycontrol. 13 Feb 2024. en.
- News: Wipro IPO rises 19 percent . 4 August 2024 . CNN Money. 19 October 2000.
- News: Shareholding Pattern 2023 . 12 January 2024 . Wipro.
- Web site: Consolidated Financial Statements for Q4FY24 . Wipro . 20 August 2024.
- Web site: integrated-annual-report-2023-24.pdf . 20 August 2024. www.wipro.com.
- Web site: integrated-annual-report-2021-22.pdf . 20 August 2024. www.wipro.com.
- Web site: integrated-annual-report-2020-21.pdf . 20 August 2024. www.wipro.com.
- News: Changes stir hopes of stability at Wipro . 16 July 2024 . Business Standard . 7 April 2015.
- News: Infy, Wipro to part-fund Bangalore expressway . 18 July 2024 . Rediff . en.
- News: Wipro to be title sponsor of San Francisco Marathon . 18 July 2024 . Business Standard. 18 April 2012.
- News: Connolly . Eoin . Wipro to title sponsor first ever Chennai Marathon . 18 July 2024 . SportsPro . 18 September 2012.
- News: Wipro's fitness push: Tech giant all set to sponsor Bengaluru Marathon . 18 July 2024 . Moneycontrol. 25 May 2023.
- Web site: Shri Shankaracharya Institute of Professional Management and Technology. Shri Shankaracharya Institute of Professional Management and Technology, Raipur. 20 August 2024.
- Web site: wipro-earthian – C. P. R. Environmental Education Centre. CPR Environmental Education Centre, Chennai. 20 August 2024.
- News: "Unjust, Unacceptable": Anger After Wipro Cuts Salary Offers To Freshers. NDTV. 20 August 2024.
- News: Wipro: Pay cut shock for new hires at India IT giant. BBC. 20 August 2024.
