Being the largest third-party telecom R&D services company in the world,
Wipro has maintained its impressive momentum in the telecom market. For FY
'06-07 the revenue from its telecom business, that includes telecom software and
network integration services, stands at Rs 3,471 crore. This indicates a 24%
growth over the previous fiscal. The telecom business has contributed 23% to the
overall revenue of Wipro.
The revenue from network integration services is Rs 1,028 crore, which
combines network consultancy design and integration, network management
services, and network security services. The telecom software revenue is Rs
2,443 crore, which combines revenues from system integration and software,
telecom software products, and embedded telecom software among others.
Internally, Wipro has realigned its telecom business units to combine product
engineering solutions and telecom service providers to form telecom and product
engineering solutions vertical. This vertical will focus on both telecom service
providers and telecom equipment and device vendors. It will provide R&D support
for product engineering, software services in niche areas like IPTV, mobile TV
and set top boxes, OSS/BSS system integration and enterprise networking.
The PES division, Wipro's R&D arm, contributes 35% to the telecom revenue.
Wipro's telecom software revenue is mainly from North America, Europe and Japan
while its networking solutions, network management, and security revenue is
predominantly from the Indian market. In FY '06-07 Wipro had significant OSS/BSS
system integration wins in India.
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Highlights
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Continuing its aggressive mode, Wipro has made many strategic tie-ups and
acquisitions last year. June last year, Wipro acquired Saraware Oy, a 21 years
old company in Finland, specializing in telecom systems. The all cash deal worth
$32 mn promises to enable Wipro to penetrate into high growth segments.
Wipro entered into a joint venture with Motorola to deliver managed services
for telecom operators. The company also signed a licensing and development
agreement with British Telecom (BT) in August, to jointly develop an advanced
mobile/remote workforce management system called 'mPower'. Oracle and Wipro came
together to deliver Oracle Communications Operations Support Systems addressed
at the IPTV industry. InfoVista and Wipro expanded partnership to support the
growing carrier Ethernet market. Wipro Infotech also acquired 3D Networks and
Planet PSG, which has a strong presence in business communications, convergence,
and voice integration.
The Indian telecom market is key to our business'
What were the significant orders completed or bagged during the fiscal Wipro got many big deals both from telecom services providers and equipment vendors in the areas of telecom BPO and projects that require capabilities across IT, networks and operations. Some examples of key wins were inventory consolidation and data migration for a US-based Telco, FMC consulting for a leading telco in UK, and CRM implementation for a service provider based in the Middle East. In equipment manufacturer business we had good growth in tier-1 accounts and had added a good number of tier-2 and tier-3 accounts. During the year, we won comprehensive networking projects from prestigious clients like the Bharti Group.
How do you view the domestic market for your business growth in the telecom
Why has Wipro realigned its telecom business vertical?
What were the new challenges, and how are you geared to overcome it?| The third challenge is related to manpower strength where staff retention is
Is there any significant trends in the OSS/BSS space? This has led service provider's interest in outsourcing basically on core |
Wipro has over 10,000 employees in telecom business, and works across the
globe. Its client list includes 8 of the top 10 equipment manufacturers, and 10
of the top 15 communication service providers globally. Its product selling
business is predominantly India centric. However, 99% of its telecom solutions
and SI business for both equipment manufactures and service providers comes from
outside India.
Europe is a crucial market for all Indian offshore players, but more so for
Wipro because it has more stake here than some of its closest Indian rival
companies such as TCS, Infosys, or Satyam. Wipro is targeting $1 bn from the
region in the next two years.