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Wipro kicks off new, lean structure

india Updated: Apr 04, 2011 21:41 IST
Vivek Sinha
Vivek Sinha
Hindustan Times
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Software major Wipro has restructured its organisation to turn a leaner, meaner self in the backdrop of emerging opportunities, growing competition and a slower show in the past financial year, which led to changes that began in February.

In a new set-up that took effect on April 1, the Bangalore-based giant that has more than 119,000 employees consolidated its business segments (verticals), re-jigged its service lines and introduced country-specific marketing plans with a customer-centric focus.

New CEO TK Kurien, who took over in February after two joint CEOs from an old structure exited, said in a memo to employees late in March that after hiring a strategy consulting firm on changing service lines and business units, Wipro was ready with a new agenda, to be shared in a week’s time.

In effect, the new initiatives makes the organisation’s several business unit heads report directly to Kurien, who took over amid worries after Wipro lagged industry rivals such as Tata Consultancy Services, Infosys and HCL Technologies.

"Our starting point was to have the right structure and right people on board… the change was necessary to build a new Wipro which is bolder, simpler and leaner," Kurien wrote in an internal memo to employees.http://www.hindustantimes.com/images/HTPopups/050411/05_04_11-buss-23.jpg

Kurien replaced joint-CEOs Suresh Vaswani and Girish Paranjpe. “With the change in environment, there is a need for a simpler organisation structure,” chairman Azim Premji had said at that time.

A Wipro spokesperson confirmed that the new structure had “gone live on April 1.”

Wipro has consolidated its business divisions into six from the earlier nine. The six new verticals include energy and utilities; finance solutions; media and telecom; pharmaceutical and healthcare; manufacturing and hi-tech; and retail, transportation and government.

“The changes aim to drive higher agility and customer centricity apart from reducing organisation complexities, thereby driving better accountability,” said the Wipro spokesperson.

In marketing, Wipro is adopting different strategies for different regions. “Emerging markets will be managed under a country focused structure.

This will include Latin America, Canada, France, Germany & Asia Pacific (including Japan and China),” wrote Kurien.