MONDAY,5JULY2021 10 NEWDELHI LONG STORY LIVEMINT.COM THEREPORTAGFRENCHMANE|TALKINGPOINTS |IDEAS |INSIGHT |THE BOTTOMLINE STEADYING WIPRO’S SHIP Leading from Paris, the new Wipro CEOThierryDelaporte is bringing fresh energy to the IT company. Wipro’snew chief executiveofficer,ThierryDelaporte, clearly has his task cut out forhim. Wipro’sITservices revenuesare still in the $8 billion rangewhile its closest competitor HCL TechnologiesLtd crossed the $10billion mark in calendar year 2020. HT Ayushman Baruah visit the Bengaluru headquarters of the role in ensuringthat the deal is asuccess. mint SECOND WIND consultingfirmEY-India.“Theyrequirea [email protected] companythathewasleading.Tomorrow, “Theteamunderherissettlingdownwell,” SHORT differentriskappetite,investmentability, BENGALURU itwouldhavebeenayearsincehetookthe he said. STORY Chart1:Afterlagging behind itspeers commercialconstruct,andtheneedtolev- job, and he is yet to set foot in Bengaluru. Delaporte aims to take a“flexible and foryears, Wipro'sm-cap hassurged past erage an ecosystemofpartnerstocreate henFrenchmanThierry open approach” to Capco’s integration, HCLTechinrecentmonths. long-term value for customers,” he said. Delaporte took the LEADING FROM AFAR giventhescaleandnatureofthebusiness. WHO Marketcapitalization (intrillion) Whenaskedaboutwhatwasworkingfor CEO’s job at IndianIT oday, Delaporte has anascent yet Capcowilloperateasaseparateglobalunit, him,Delaporte highlighted afew factors Paris-based Thierry Delaporte, WiproIHCLTechnologies nfosys Tcredibleturnaroundstorytotell.Part 7 services major Wipro reportingdirectly to Delaporte. Over the 6.68 thathad hindered Wipro’s growth in the W of it doubtlessly is the timing. The pan- Wipro’s new CEO, is yet to set Ltd,thecurrentshadnot next fewquarters, Wipro will develop an past. Growthwas notbroad based and foot in Bengaluru after being 6 beeninthecompany’sfavour.InFY2019, demichasmeantanaccelerationofdigitali- integratedoperatingmodeltocrosslever- 5 largelyledbyonegeography—theUS.“We for the first time in its history,it had fallen zationaroundtheworldandITcompanies ageitscapabilitiesseamlesslyandbringthe appointed to the job in the hadspreadourselvesverythinintermsof summer of 2020. But his distinct 4 to the fourth positionby revenues among haveseenbusinesssoar.Buthehashadto best of Wipro and Capco to current and 2.95 markets and sectors. There were mixed India’s IT majors. It used to be the second positiontheshipinanoptimaldirectionto prospectiveclients,hesaid.GivenCapco’s touch is already visible in the firm 3 resultsinterms of mining large accounts largestbyrevenueduringmostoftheearly be able to harness the tailwinds. strongbrandpresenceandrecognitionin 2 2.67 andwinning large deals,” he said. days of India’s IT story—from 1984 to Fornow, investors have cheered Dela- the US and UK markets, the Capco brand 1 6July2020: NewCEO DelaportealsobelievesthatWiprointhe takes overatWipro 1998—and, since then, had held on to the porte’s moves.The stockpricehas more will be retained going forward. HOW 0 pastdidnothaveahigh-performancecul- thirdposition,behind TataConsultancy than doubled sincehis joining. The bell- Wiprohastakenanaggressivestanceon 1Jan 2020 1Jul 2021 ture.“Perhapswewere tooaccommoda- ServicesLtdandInfosysLtd.Butlosingthe wether Sensex rose 47% during this time. mergersandacquisitionsbecause“M&Ais The stock price has more than tive.Ourearlierdeliverystructurewasway doubled since his joining. On 23 Chart2:With ThierryDelaporte as the thirdpositiontotheNoida-headquartered On23April,Wiprowrestedbacktheposi- an integral part of our business strategy,” newCEO, strategic acquisition hasbeen too complex with multiple delivery HCL Technologies Ltd came as asharp tionasthethirdlargestIndianITcompany Delaportesaid. “The acquisitions will April, Wipro wrested back the units…toomanyoverlaps, duplication, position of the third largest akey part of Wipro'sgameplan. reminder that the companywas falling by market cap from HCL Technologies, improve accesstomarkets and service (Selectacquisitions) slower decision making.” behind in the IT sweepstakes. after agap of 18 months. offerings.” Indian IT firm by m-cap from HCL Aspartofitsstrategytofocusonspecific Momentumcountsforalotinthetech- The transformation of the company’s Some of the other recent acquisitions Technologies after 18 months Valuation* (in$million) geographies, Delaporte is betting big on nologyservices and theconsulting busi- structure has been aggressive.There are include:Ampion,aleadingAustralianpro- Capco 1,450 Europewherethedemandtoadoptdigital nessthatWiproisin.Businessbegetsbusi- now just four so-called strategic market viderofcybersecurity,DevOpsandquality Ampion 117 technologiesishigh. Nearlyallsectorsare ness. Satisfied customers add more cus- units andtwo global business lines, as of engineeringservices;EncoreThemeTech- NOW 4C 80.7 poised well for growth in the Americas as tomers through avirtuous cycle of January 2021. nologies, aspecialist Finastra software EximiusDesign 80 well,the largestmarketfor Wipro. With It remains to be seen whether the endorsements and recommendations to Delaporteadoptedandcommunicated partnerinfinancialservices;4C,aleading IVIAServicosdeInformatica 22.4 large-scalevaccinationsunderwayandthe IT major’s turnaround in fortunes clients, vendors and others. Wipro was afive-pointstrategy.Itinvolvedaccelerat- Salesforce multi-cloud partner in Europe Encore Theme Technologies 12.7 stimulusprovidedbythegovernment,Del- clearly losing momentum. ing growththrough prioritization of sec- andtheMiddleEast;andIVIAServicosde will hold even as the pandemic- aporteexpects the economy to bounce induced digitalization wanes. *Some values areapproximationsbased on Delaporte’s predecessor Abid Ali Nee- torsandmarkets,strengtheningrelation- Informatica,aspecializedITServicespro- prevailingcurrency conversionrates. back strongly. Also,margins could come under muchwala,whotookthejobin2016,setout shipswith strategic clients and partners, vidertofinancialservices,retailandmanu- Source:Capitaline, BSE, Mint Research Based on conversations with clients, withastatedmissiontoturnthecompany enhancingthecompany’sportfolioofbusi- facturingsectors in Brazil. pressure as expensesincrease DelaporteexpectsITspendstoeitherstay intoa$15billionenterprisewithoperating nesssolutions,buildingtalentatscale,and “Wiproisgoingthroughalotofchanges flat or grow as apercentage of their reve- margins(ameasureofprofitintheoverall simplifyingtheoperatingmodel. “Oursim- andre-imaginingitsoperatingmodel.This nues. “AbsoluteITspends will certainly revenue pie) of 23% by 2020. Whenhe plifiedoperatingmodelisdesignedtodrive (spreeofacquisitions)wasamuch-needed tojoinaspresidentoftheITarmofWipro RIGHTINVESTMENTS grow well. However, we mustnot forget resignedinearly2020,thecompany’srev- customer centricity. Our new operating initiative to translate its strategy into exe- whenits turnoverwas just ₹7 crore. By uttotheDelaporteera,growthisatthe thatthespreadofthepandemicandspeed enuestoodashadeabove$8billion,withan modelwilldriveagilityandempowerment cution,”saidD.D.Mishra,aseniordirector 1998, when Soota left WiproInfotechto Ctopofalistofpriorities. “We willbe ofvaccinationroll-outswillbekeyfactors,” operatingmarginof18% for FY20. forleadersandteamswhoareclosesttothe analystatGartner.“Theoutcomeofthese start his own venture, the division’s reve- obsessedwithgrowthandprofitability,”he he said. Thecompetitive scenario was tougher clients,” Delaporte said in an interview. endeavoursmaytakesomemoretimetobe nue had zoomed to $500 million. said, adding that growth does not come The new chief executive officer clearly than ever. TCS and Infosys, the larger “This is in line with putting (the) cus- visible, but it has ahealthy pipeline at the VivekPaulreplaced Soota as the vice withoutsignificantstrategicinvestments. hashistaskcutoutforhim.Wipro’sITser- rivals, held their turf even as aslew of tomeratthecentreoftheoperatingmodel momenttodeal with. The direction of chairmanin1999andunderhisleadership, “Ourinvestmentplancoversabroadspec- vicesrevenues are still in the$8billion smaller IT companies started chipping and driving proximity with them,” he changetowardsbecomingamoreflexible, Wiprotouchedthe$1billionrevenuemark trum of areas—fromsales,partnerships, range while its closest competitor HCL awayatspecificsectorsandcompetencies. added. adaptive,andcomposableorganizationis in 2004. The bull run somewhat ended capabilities,IPs(intellectualproperty),cul- Technologies Ltd crossed the $10 billion Accenture, IBM and Capgemini—the Abig move in Delaporte’s tenure so far astep forwardinthe rightdirection,” he with Paul’s exit in 2005. Wipro did not ture and talent,” Delaporte said. markincalendaryear2020.Wipro’soper- globalmajors—hadlarge hasbeen the acquisition added. haveareplacement,soitputinplaceanew Thecompanyislaying atingmargins for FY21 development centres in of London-headquar- ChairmanRishadPremji,whocherryp- organizationalstructurewhereinthelead- thegroundwork foran stoodat20.3%,anexpan- Indiaandpartlyasacon- In April 2008,Wipro teredCapcoinMarchthis icked Delaporte for the job, thinks he has ers who had functioned below Paulwere ambitiousdomain spe- As part of its strategy to focus sion of 218 basis points sequence, had gotten experimentedwith ajoint year—at$1.45billion,the madetherightchoice.“Hehasmadebold given independent charge of the busi- cialist hiring drive. on specific geographies, the overthe previousyear. better at competing on largestinWipro’shistory. changestobuildamorecustomer-centric