|
|
|
Suresh Vaswani,
PRESIDENT |
|
SERVICES: Systems integration, FMS, IT services and software solutions
EMPLOYEES: 2,100
BRANCHES: 70
ADDRESS: Doddakannelli, Sarjapur Road,
Bangalore 560035
TEL: 080-28440011 |
|
|
| STRENGTHS |
| l |
Ideal mix of products, services, solutions and consulting |
| l |
Leveraged on channel model for last-mile solution/service delivery |
| WEAKNESS |
| l |
Scale of operations prevented aggressive tapping of SMB opportunities |
| l |
Single-digit profitability; issues with finding and retaining right kind of manpower
|
|
Holding on to its distinction of being the country's largest IT solution
provider, Wipro Infotech makes other entrants in the Silver Club pale in
comparison. Well, almost.
While recording a very modest revenue growth of 14% in domestic business, its
turnover of Rs 869 crore for FY 2004 is way ahead of players like CMC and CMS
Computers. If revenues from its own-branded systems and Middle-East and APac
business are included, the balance sheet would show a massive Rs 1,160 crore.
Few years ago, Wipro was identified more as a hardware player. However,
having clearly structured its operations into five business divisions-PC
division, enterprise products, services, solutions and consulting-it was able
to enhance its image as a true 'one-stop-shop' to meet any IT requirements
of its customers.
Service was a major component of the turnover with revenue contribution of
over 30%. Its infrastructure management and systems integration service business
both grew by over 50%. AMC and FMS business put together contributed over Rs 200
crore to the company's kitty.
Its consulting practice also gathered momentum and brought revenues in excess
of Rs 10 crore. This upswing in service business resulted a solid 42% growth in
its profitability with operating margins increasing to 8.1%.
On the hardware side, sales were more or less flat compared to FY 2003. As
the oldest partner for Sun in Asia, majority of enterprise product sale was by
way of its mid-range servers totaling Rs 197 crore. This accounted for 36% of
net revenues of enterprise product sale.
Cisco brought in another 20% and IBM 8% in this category. Storage added Rs 86
crore while packaged software brought in Rs 35 crore. Avaya, Veritas, BEA,
Oracle, StorageTek and PeopleSoft were some new vendors that it partnered with
last year.
Some large-size deals that Wipro won last fiscal were from banking customers
like Vijaya Bank, Oriental Bank and Union Bank. It also implemented projects for
ONGC and the Indian School of Business, besides Petronas and Saudi Telecom as
offshore projects. Two of these deals were over Rs 50 crore, while the other
three valued over Rs 30 crore.
The company also went aggressive on ERP solutions and inducted nearly 200-odd
people for this practice.
Page(s) 1
| 
