Indian IT giant Wipro is set to revolutionize its strategy, veering towards substantial profit by narrowing its client base for large deals.
CEO Theirry Delaporte unveiled the blueprint after the company’s Q1 FY 2023-24 earnings announcement.
With a resolute vision, Wipro aims to amputate its longtail, opting for deals boasting significant operating margins.
The move intends to unlock latent potential within the organization by channeling expertise into substantial projects.
Wipro’s Large deals worth $1.2 billion were sealed, a remarkable 9% YoY growth, the highest in eight quarters.
Ten contracts exceeding $30 million Total Contract Value (TCV) were inked this quarter, culminating in an impressive $3.7 billion in total bookings.
Notably, Wipro expanded its horizon by embracing two additional enterprises in the $100 million revenue bracket, propelling the count of such major contributors to revenue to an impressive 21, up from a mere 10.
This strategic overhaul saw Wipro part ways with roughly 100 clients, a decision underscored by the company’s CFO, Jatin Dalal.
Delaporte emphasized that Wipro’s impact in the market grows daily, evident in closed deals, particularly the substantial ones.
The company’s expanding major accounts validate the success of the account strategy, proven over the past 10 quarters.
The count of $100 million accounts doubled in two and a half years.
The shift allows optimal utilization of talent. Opting for low-margin deals often sidelines top performers; a concern is there to rectify by allocating them to significant projects.
Financial records reveal that Wipro’s active client roster numbered 1,444 by the close of June 2024.
While the number of deals waned, the Total Contract Value (TCV) surged, a testament to the efficacy of this revamped approach.
This paradigm shift aligns Wipro’s trajectory with the ever-evolving landscape of IT business, setting the stage for a more targeted, lucrative, and impactful future.
