Wipro aims to reach Infosys goal by setting $20 bn revenue target

Wipro CEO Abidali Neemuchwala and Infosys CEO Vishal Sikka have one common goal — of achieving revenue target of $20 billion by 2020.

Wipro CEO Abidali Neemuchwala on Wednesday said the IT services provider aims to double its revenues to $15 billion by fiscal 2020 with a 23 percent operating margin.

Infosys CEO Vishal Sikka in April last year said Infosys is targeting to become a $20 billion revenue company by 2020 with an average revenue per employee at $80,000.

ALSO READ: Infosys aims to become $20 bn IT services firm by 2020

There is a significant difference in the growth and revenue of Infosys and Wipro. During the fiscal 2016, Wipro revenue rose 3.7 percent to $7,346 million. Infosys revenue increased 9.1 percent to $9,501 million during the same period.

Infosys action plan

Infosys CEO Vishal Sikka says the revenue target of $20 billion would be achieved by a mix of organic and inorganic growth.

Infosys will automate many of the routine works. Infosys will also deploy more number of employees to fetch higher revenue for achieving the goal of average revenue per employee to $80,000 from the current $50,000.

The company aims to add 70,000 employees to rolls in the process towards achieving the five-year goal. Infosys will have around 250,000 employees by 2020.

Wipro strategies

Abidali Neemuchwala is not new to Wipro and the IT services industry. He replaced Wipro CEO TK Kurien after joining from Tata Consultancy Services (TCS).

In the last 80 days after he took over as the CEO, Abidali Neemuchwala met about 70 of its top 100 clients.

Wipro CEO is betting on 6-pronged strategy to build the Bangalore-based IT services company to become a $20 billion software house.

Focus areas for Wipro would include Digital, client mining, growth markets, non-linearity, hyper-automation and partner eco-system.

Wipro has aligned its consulting services with the Digital unit to boost the capability of the Digital unit. It acquired Designit to bolster our Digital business revenue. Wipro bagged seven deals in Digital in the fourth quarter of fiscal 2016. It trained over 10,000 people in the last fiscal year. This year, Wipro plans to train 20,000 people who can execute on digital technologies.

As part of client mining strategy, Wipro has set up an integrated services unit with the mandate of integrating our technology service lines and being able to provide proactive proposals across its customer base.

Wipro will focus on the new growth markets and its Latin America, Canada, South Africa, as well as Continental Europe teams are now in place. It’s also driving a higher level of localization in all key markets. In Continental Europe, Wipro acquired local presence through the Cellent acquisition.

Wipro is investing in centers in key growth markets like Latin America, Africa, and other parts of the world.

Non-linearity is the fourth strategy of Wipro. In each industry segment, Wipro is creating use cases based on the Wipro HOLMES platform which essentially provides augmented or artificial intelligence and cognitive capabilities.

The fifth theme of Wipro is hyper-automation to drive not only deliver productivity but also a new way of how work is done, leveraging cognitive and robotic process automation and changing the traditional IT delivery model.

“Last year, we focused on POCs across 42 clients. This year, we are scaling up the rollout across these clients, primarily in the areas of IT infrastructure and application managed services and business process services. We plan to release about 4,500 people on our managed services engagement through the automation throughout this fiscal year,” said Abidali Neemuchwala.

Wipro announced four acquisitions this year. Wipro laso launched Wipro Ventures last year. It made six investments with a spend of $20 million in FY 2016 in the areas of big data and analytics, artificial intelligence, Internet of Things, and cyber security.

Baburajan K
[email protected]