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Top10 Vendors: 6 - WIPRO: Winning Formula

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VoicenData Bureau
New Update

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.

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 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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AREA OF OPERATION:

Networking products and services



Address:
Cisco Systems India



IL&FS Financial Centre


6th Floor, C 22, G Block, Bandra-Kurla Complex


Bandra East, Mumbai 400 051


Tel:
+91 22 40434028



Fax:
+91 22 26533703



website:


www.cisco.com/global/in




Highlights

  • Strengthening R&D focus

  • Started manufacturing in

    India through Foxconnn

  • Acquisitions to power

    innovations

  • Selected India as the

    globalization center

  • Increased thrust on SMBs

  • Ensured 80% share in core

    routing and switching market

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.

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The Indian telecom market is key to our business'

What were the significant orders completed or bagged during the fiscal

2006-07?





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

domain?



Suryanarayana Valluri

vice president, TSP Group







The Indian market has shown good promise as it reaches global proportions.

It's a leading edge market and Indian telecom projects are among the best in the

world. This wasn't the case two to three years ago. That's why the Indian market

is key to our telecom business. There is good traction in system integration

projects.  

Why has Wipro realigned its telecom business vertical? 



Wipro believes that the telecom industry is moving towards a collaborative core
(partnerships) and to win in such a competitive environment, it is mandatory to

change our strategic outlook. We have realigned ourselves to focus more on these

aspects. We have consolidated our dominance in the telecom equipment business,

and grown in mobile and consumer business which is a significant differentiator.

We have been able to combine all round growth in TSP, leverage IT, BPO and

network competence, and incubated telecom professional services. 

What were the new challenges, and how are you geared to overcome it?|





Firstly, on the equipment vendor side we are observing a trend of

consolidation with lot of mergers and acquisitions taking place. The second

challenge is to reach the telecom service providers who are diverse in their

offerings as well as geographically distributed. To further penetrate

geographically, Wipro is leveraging its strength of Wipro Infotech's presence in

the Apac region and Wipro Technologies' impact in the North American and

European markets.

The third challenge is related to manpower strength where staff retention is

a key focus. Wipro is heavily investing in four competency groups which focus on

OSS/BSS, service delivery platform, network testing, and network solutions.

Is there any significant trends in the OSS/BSS space? 





We know that there are three simultaneous factors driving service providers

today, getting the cost down by automated business processes through integrated

operational support systems, being able to offer integrated service bundles by

transforming multiple stove-pipe process and systems stack into a common, multi

service delivery capability and at the same time improving customer experience

and driving new revenues from new innovative and software content.  

This has led service provider's interest in outsourcing basically on core

side for areas like network management and operations. Investing in true service

management solutions will be the key. Impact of consolidation will lead to

reduction in number of suppliers and, thus, partnerships between ISVs and SIs

will remain an important strategy for all players.

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.

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