Wipro Shuffles IT Management After Reporting Less Net Profit Than Outsourcing Rivals

January 25, 2011

Reports say that outsourcing giant, Wipro, has made changes to its outsourcing management. The move comes on the heels of its profit growth report that revealed less net profit than its competitors. One company that releases earnings earlier was rival, Infosys.

Wipro has been struggling to make big deals amid an economic downturn that roiled the industry. Moreover, the company margins and stock prices have also dwindled in comparison with its rivals Tata Consultancy and Infosys, the second biggest outsourcer from India.

Hardik Shah, KR Choksey Shares & Securities analyst was quoted as saying in an online news report by the nytimes.com that Wipro has not been doing as well as Infosys and TCS in the last six quarters.

Wipro has announced plans to simplify it structure by making T.K.Kurien the CEO of its IT unit. This would mean that Girish Paranjpe and Suresh Vaswani, co-CEOs would be leaving their positions as chief executives by the end of January. The IT unit is responsible for brining in  about 75% of its total revenue.

The IT unit is responsible for making software apps, integrating IT systems and managing customer service centers for companies like Cisco, Citigrup and Credit Suisse. chairman, Azim Premji, told a news conference.

Chairman of the Board, Azim Premji, said at a news conference, “I don’t think we should be making excuses,’ adding, “What we are trying to do is improve performance in Quarter 4 and significantly improve performance going forward.” The company was named, ‘Indian IT Company of the Year’ by IT market research firm, Springboard Research. Springboard’s report outlined Wipro’s nomination for the title. Wipro was selected not just for superior revenue figures ,but also for its clients.

However, the big name outsourcer has been lagging in profits, performance. Additionally, the company’s 21% operating margin for 2010 was considerably lower than that of Tata and Infosys.

Reports say that outsourcing giant, Wipro, has made changes to its outsourcing management. The move comes on the heels of its profit growth report that revealed less net profit than its competitors. One company that releases earnings earlier was rival, Infosys.

Wipro has been struggling to make big deals amid an economic downturn that roiled the industry. Moreover, the company margins and stock prices have also dwindled in comparison with its rivals Tata Consultancy and Infosys, the second biggest outsourcer from India.

Hardik Shah, KR Choksey Shares & Securities analyst was quoted as saying in an online news report by the nytimes.com that Wipro has not been doing as well as Infosys and TCS in the last six quarters.

Wipro has announced plans to simplify it structure by making T.K.Kurien the CEO of its IT unit. This would mean that Girish Paranjpe and Suresh Vaswani, co-CEOs would be leaving their positions as chief executives by the end of January. The IT unit is responsible for brining in  about 75% of its total revenue.

The IT unit is responsible for making software apps, integrating IT systems and managing customer service centers for companies like Cisco, Citigroup and Credit Suisse,  chairman, Azim Premji, told a news conference.

Chairman of the Board, Azim Premji, said at a news conference, “I don’t think we should be making excuses,’ adding, “What we are trying to do is improve performance in Quarter 4 and significantly improve performance going forward.” The company was named, ‘Indian IT Company of the Year’ by IT market research firm, Springboard Research. Springboard’s report outlined Wipro’s nomination for the title. Wipro was selected not just for superior revenue figures ,but also for its clients.

However, the big name outsourcer has been lagging in profits, performance. Additionally, the company’s 21% operating margin for 2010 was considerably lower than that of Tata and Infosys.


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