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Wipro to exit from computer manufacturing business

In a landmark shift of priorities that marks the passing of an era, IT giant Wipro said on Wednesday that it will no longer make computers and focus instead on systems integration, IT solutions and services.

business Updated: Dec 05, 2013 01:12 IST
HT Correspondent

In a landmark shift of priorities that marks the passing of an era, IT giant Wipro said on Wednesday that it will no longer make computers and focus instead on systems integration, IT solutions and services.

The Bangalore-based company led by Azim Premji follows HCL Infosystems, which also quit manufacturing of computers, which face stiff competition in a cut-throat market.

“Our vision is to strengthen our position as a leading system integrator. Manufacturing our own PCs was not giving us a competitive differentiation in our System Integration solution suffering,” said Soumitro Gosh, senior vice-president and head, Wipro Infotech.

Wipro will, however, be present in the PC market by providing suitable brands as a part of its solution offerings in large integrated deals.

India’s third-largest software services player, which started marketing indigenous personal computers in 1985, has manufacturing units in Kotdwar (Uttarakhand) and Puducherry. The two facilities have a combined capacity of about 2.20 lakh units of desktops, laptops and servers.

The company declined to comment on the number of employees in the PC manufacturing business. However, sources suggest the number is lower than 2,000.

Wipro will be present in the personal computer market by providing suitable brands as a part of its solutions offerings in large integrated deals, the company said.

The company will fulfill its warranty and annual maintenance contracts obligations according to the terms of the existing contracts. It will execute all customer commitments and provide support services to the entire installed base as part of its regular managed services offering, Wipro said.