Wipro Technologies, the IT arm of the $6 billion Wipro, has said that its recent IT business restructuring will start to show positive results only after three quarters. ?It is unlikely you will get any benefit in short run. Before three quarters, we don?t see any impact. Restructuring is not about people but about growth and customer satisfaction,? said T K Kurien, chief executive, IT business, Wipro Technologies, during a media call on Tuesday.
With continued strong outsourcing demand, India?s third-largest software exporter is optimistic of cashing in on the structural changes where client delivery, sales and profitability are aligned more closely with the strategic business.
?Demand continues to be stronger. There is no short term bliss as far as demand is concerned. Long-term demand is higher compared to last year,? Kurien said, while taking to reporters at a conference call on Tuesday. The IT major has plans to focus on verticals like healthcare, manufacturing and hi-tech and pitching for more business in the emerging markets. ?For emerging markets, we have created two different teams reporting directly to me. For developed markets, we will focus on areas where we are under penetrated, and for developing markets, we will look for integration,? said Kurien
On Monday, Wipro announced six strategic business units as part of its streamlining process. Manufacturing and hi-tech is a new SBU formed to leverage the synergies between the two industries. The changes will be effective April from 1, the company said. ?Our fundamentals are sound and the reason why we are doing this is to make ourselves future ready. The restructuring was planned to create more focus around customers, employees, to create more values and to deliver faster. Service line is our growth engine,? he added.
TK Kurien, who takes over as CEO from April, promised to simplify and speed up Wipro?s execution, which has been lagging among its peers in terms of volume growth. Among the top three IT players in the country, Wipro?s result was a major disappointment. It posted the weakest quarterly earnings among peers who better exploited the strong demand in the growth areas like the BFSI and healthcare sector.