Wipro Set To Grow Its Digital Footprint Globally
IT organizations are realizing that digital is the way to go. Not surprisingly, India’s third-largest IT services firm Wipro which is plunging into the digital area, is pursuing an active acquisition strategy to win in this segment. The Bangalore-based IT giant has recently launched an independent business unit called Wipro Digital. It is looking at acquiring companies in areas such as ‘design competency’ and ‘process utility’ to expand its bouquet of services in the digital space.
The IT major is also setting up a “commando force” unit next month that will target clients seeking to speed up automation and do more business online, an executive told Reuters. Rajan Kohli, who will head the newly formed Wipro Digital business, said the unit aimed to generate $1 billion in annual revenue within three years, which would make it one of the company’s top sources of revenue.
He explained that the unit would provide a much faster service for clients. The number of employees will also be lower than in more traditional units. In this sense, it is like a commando force. The company is especially looking at North America and Europe, as there are companies in these regions which have reached some maturity in the digital segment, Kohli told Business Standard.
Early this month, Wipro has partnered with Acquia, a digital experience company, to deliver digital experiences for its clients around the world. Wipro leverages the Acquia Platform on critical client projects that require an open and agile framework to integrate content, community and commerce.
Experts believe after decades of low-margin work like server maintenance, India’s $150 billion IT services industry is looking towards artificial intelligence, cloud solutions and other more sophisticated digital services for growth.
Wipro’s digital push is in line with its industry rivals that are aggressively moving ahead with their digital business strategy in newer areas such as artificial intelligence, automation, big data and Internet of Things.
Infosys CEO and managing director Vishal Sikka, too, has laid out a new strategy focusing on areas and on ‘design thinking’. Similarly, India’s largest IT services exporter TCS has created a new vertical called ‘digital software and solutions group’ from which it expects $5 billion over the next five years.
In recent interviews Wipro’s MD and CEO T K Kurien said the company’s focus will be on ‘digital business’ by identifying opportunities in Internet of Things (IoT), open source and artificial intelligence (AI). A lot of investment would go into these areas with a dedicated leadership team in place, hinting at the new digital business unit that has now been announced.
Industry advisory Offshore Insights estimates automation and AI will grow to 25-30 percent of India’s IT outsourcing market by 2020 from less than 5 percent now. The sector is also expected to double in value to $300 billion by then, bringing bigger growth to these providers.
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