Growth acceleration remains a key priority for Wipro: report
BENGALURU : IT and consulting firm Wipro Ltd reiterated its strategy focused on five strategic priorities to accelerate revenue growth further, Emkay Research said in a report based on an analyst meet. “A simplified operating model and a focus on prioritized markets have led to superior growth performance in the last few quarters."
The five strategic priorities are accelerating growth focus and scale, strengthening clients and partnerships, leading with business solutions, building talent at scale, and simplification of the operating model.
The company’s focused approach of prioritizing key geographies and segments has resulted in four out of seven sectors in Americas growing at a compound quarterly growth rate (CQGR) of over 5% and four out of six countries in Europe growing ahead of the company in the last four quarters, the brokerage firm said.
Wipro’s bet on the cloud ecosystem has yielded “desired" results, according to Emkay Research, with revenue growing at a CQGR of 6.4% over the last four quarters. Cloud now accounts for more than 30% of revenues and one-third of the total deal pipeline. Wipro plans to invest $1 billion in cloud over three years to accelerate growth.
The company is looking to strengthen its strategic alliances with partners like AWS, Google, Microsoft, SAP, Salesforce, and ServiceNow to build industry-specific solutions to meet clients’ demand. Management has indicated that clients are rapidly pivoting to enterprise-wide transformation programs that drive business outcomes and require investment funding as a part of operating models with partners.
“Wipro expects margins to sustain at current levels on the back of benefits accruing from pyramid rationalization, higher offshoring and revenue acceleration-led operating leverage invested back into domain and solution capabilities, M&A, and the front-end sales team," Emkay Research said.
The company has delivered a strong operating performance in the last few quarters on the back of demand tailwinds, a simplified operating model and a focused market approach.