Can Wipro reclaim its former position as India’s third-largest IT firm?

Can Wipro reclaim its former position as India’s third-largest IT firm?

The past year has been a watershed moment in the history of Wipro Ltd. A key milestone was reached by the Bengaluru-based information technology (IT) company, which finally caught up to the industry’s double-digit growth rate and passed a significant revenue run rate of $10 billion per year. 

As announced during the company’s quarterly earnings call on October 13, Wipro has achieved a revenue run rate of $10 billion for the fiscal year ending September 2021. Within 12 months, it had generated $2.4 billion in additional revenue. This allowed it to close the gap with HCL Technologies Limited, which had surpassed it as India’s third-largest information technology company just two years earlier. HCL Tech earned $10.8 billion in revenue during the fiscal year that ended September 2021.. 

In addition to Wipro’s outstanding performance, Thierry Delaporte, a 27-year veteran of the IT services industry who previously worked for Capgemini SA, will assume the role of managing director and chief executive officer on July 6, 2020, as the company restructures its management ranks. 

Can Wipro reclaim its former position as India's third largest IT firm?
Can Wipro reclaim its former position as India’s third-largest IT firm?

Wipro’s position as the third-largest IT company in India, behind Tata Consultancy Services Limited and Infosys Limited, is in jeopardy with the appointment of the Frenchman as its chairman. 

In the words of Peter Bendor-Samuel, CEO of Everest Group, a research and advisory firm, “Under Thierry’s leadership, Wipro is finally making its long-awaited comeback, and the sales momentum that has been demonstrated over the last few quarters appears to be continuing.” 

In the years prior to Delaporte’s arrival, Wipro had lagged behind its competitors in terms of revenue and profitability. As a result, revenue growth for Noida-based HCL Tech was much slower, allowing the company to overcome the challenge. 

In the financial year 2011, Wipro’s revenue increased by 19 percent, to $5.2 billion, and by 13,4 percent, to $5.9 billion, the following year. However, the company’s growth slowed to a single-digit rate the following year. 

The second time around 

In the history of information technology, HCL Tech is not the first company to dethrone Wipro from its throne. When Wipro went public in 1999, it was the second-largest IT services provider in India. By 2002, Infosys had overtaken the company and was the second-largest, with revenues of Rs. 2,603 crore, compared to Rs. 2,300 crore for Wipro. 

During the financial year 2012, it increased to $1 billion, and it will reach 5.4 billion in 2021 when Infosys will have generated $13.5 billion in revenue compared to Wipro’s $8.1 billion revenue.

Read More: Earning From Technology Giants


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *