Wipro continued with its upward surge through its two arms Wipro Infotech
(WI) and Wipro Technologies (WT) in the communications business in FY 2001-02.
The company registered a growth of 33 percent in the communications space.
During the year, its business in communications surged from Rs 1,044.6 crore
to Rs 1,389.9 crore. The cashcow for its business has been WT. Despite the
global slowdown, WT, from its communications-oriented revenues, grew from Rs
725.3 crore to Rs 1,099.6 crore. However, the Indian and Asian arm of the
company, WI, was only a shade better than in the
previous fiscal. While the annual revenues of WI in the fiscal 2000-01 stood at
Rs 282.8 crore (in enterprise networking solutions and services), fiscal 2001-02
saw it rake in Rs 290.3 crore. Nonetheless, WI has been the largest network
integration player in the country in the fiscal 2001-02.
Wipro’s success comes from its continued positioning at the core of ‘network
platform centric’ development and a single-window shop for various solutions.
While these have been at the technology and marketing initiative levels, its
emphasis on the quality too paid-off. The Six Sigma initiatives contributed to
savings of close to Rs 100 crore for WT alone. The gains made on the
productivity front and its cost-management initiatives helped it retain the
operating margins. For WT, the R&D services business segment contributed 50
percent of its services revenue–same as the previous year.
The technology infrastructure horizontal contributed 7 percent of the
services revenue across R&D and enterprise solutions segments. Its R&D
efforts continued in the area of routing and QoS protocols for edge routers, and
the company also set up an interop lab for testing, integration, validation, and
Although WI remains the numero uno integrator in the country, its total NI
business was down by about 9 percent to Rs 244.5 crore. Primarily because of the
general slowdown in deployment in the IT sector and the delay in telecom
projects. The ISP and data center sector was almost nonexistent.
While in the previous fiscal, its share from the telecom and ISP, and IT
sectors was 20 and 27 percent respectively, in the last fiscal it was 17 and 24
percent respectively. One of the key reasons of WI’s success has been its
presence across all verticals–manufacturing, banking and finance, telecom and
ISP, IT, and government. Plus, its reach and staff. With 173 offices, 620
engineers supporting networking, 134 engineers contributing on the systems and
network integration front and 42 marketing personnel, it has the necessary
ammunition to beat anyone in projects. It also met with considerable success
after its restructuring to focus in the APAC region, including India, through
four distinct groups–the APAC, products, solutions, and services divisions.
Its services revenue grew to Rs 67 crore. And it made some significant in-roads
into APAC. It won a major contract from Telecom Malaysia in fault management and
SLA management. And with the worst times over, it looks that Wipro is all set to
further consolidate and grow this fiscal through its two arms.