what is happening at Wipro?

Wipro’s revenue is expected to decline in each quarter of the upcoming calendar year. It is not just the revenue Azim Premji, the founder of Wipro is also a bit uneasy about the company's direction.

But, what is happening at Wipro...?

In a nutshell, it might be the CEO inducing a move...

Now, let's go back to 2020 – Wipro was going through a tough phase, falling to the fourth spot in the IT hierarchy. HCL took the lead, and Wipro needed a game-changer. Enter Thierry Delaporte, the new CEO, with a bold plan: supercharge growth in Year One, match competitors in Year Two, and outshine them in Year Three.

But how to make this growth happen?

One idea was acquisitions – Wipro went big, spending $1.4 billion for London-based consulting firm Capco. Why? Because financial services make up 30% of Wipro's top line, and Capco is a champ in that arena. Buying a consulting firm lets Wipro add extra value for clients and tap into Capco's existing client base for more IT services.

The other strategy? Bag those high-value deals, $500 million and above. Wipro started strong, scoring a $700 million deal with German wholesaler Metro in December 2020. Delaporte was so optimistic that Wipro even hired a Chief Growth Officer from Accenture to lead the large deals business.

At first, things looked promising. In the ten years before Delaporte, Wipro's revenue grew by $3 billion. Under his watch in just three years, it hit the same figure.

But here's the catch – Delaporte took control when the pandemic had everyone rushing to digitize. Wipro rode that wave, but it didn't last. Cracks in Delaporte's plan started to show.

Remember that $3 billion revenue jump? Almost a third came from Wipro's buying spree, but it cost them nearly $2 billion. Not the best return on investment, right? And Delaporte's 'clean-up' plan included firing 250 of the top 750 executives within a year, aiming for new talent but at a higher cost. Profit margins shrank by 3.5%.

The Chief Growth Officer tasked with winning big deals? No luck there – not a single mega-deal in three years.

Sure, times are tough for IT firms globally, especially with 70% of business coming from the US and Europe. But here's the kicker – Wipro's rivals snagged at least 9 deals over $1 billion during the same period. That puts Wipro in a tough spot, or let's be straight – Wipro stumbled.

And the outcome?

For the first time, Wipro's quarterly revenue is expected to drop each quarter of the year. Meanwhile, its rivals are still on the upswing.

The big question now? How will Wipro bounce back? The Chief Growth Officer just resigned, there's a restructuring in the works, and some are even saying the CEO might be on the hot seat.

So, we'll be keeping an eye on how Wipro tackles this challenge.

 Until then...

Make sure to check out Shree Sarang, which delivers the best artificial jewellery for all types of outfits to enhance your beauty at the most affordable price and is also the sponsor of this article.