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Wipro eyes high margins

Wipro Technologies creates a separate team to target high-margin business in retail, utilities, consumer products and auto ancillaries, reports V Ganesh.

business Updated: Jun 09, 2007 01:09 IST
Venkatesh Ganesh

Wipro Technologies has created a separate team to target high-margin business in retail, utilities, consumer products and auto ancillaries.

The move comes at a time when competitors are cutting prices and often operating at zero-margin to gain market share. It is aimed at positioning Wipro as a value player.

To increase its share of the high-margin software package implementation jobs Wipro has formed a team comprising of Sairaman Jagannathan and Ajit Kumar. The area entails deploying, maintenance and support of enterprise software like SAP and Oracle.

Wipro has also set up a centre of excellence in Bangalore that will develop and customize SAP-related solutions for its customers.

Sairaman Jagannathan, the vice president for business solutions division told Hindustan Tines “With increasing automation in utilities like power, gas and water, we see an opportunity from ERP software to selling Wipro PCs."

He added that the business solutions division that undertakes work in technology areas such as enterprise resource planning, customer relationship management and business intelligence is growing at 50 per cent since three years.

A similar strategy will be pursued when it comes to tapping the retail sector added added Ajith Kumar, head of SAP practice for Asia Pacific, India and Middle East.

The company will deploy, support, offer maintenance for point-of-sale solutions, RFID, back-end systems integration, supply chain management software and hardware maintenance.

Not limiting its focus to large companies, Wipro has plans to tap the small and medium businesses in India and globally.
"We see companies with a turnover under Rs 1,000 crore adopting new systems quickly when faced with competition from global businesses," says Jagannathan.

When asked about Wipro's increasing push to be seen as a package implementation player an analyst from a leading Mumbai-based brokerage said that competitors such as Satyam and HCL were competing at price and sometimes zero margins in a deal and Wipro is trying to be seen as a value player rather than a player who competes on price alone.