wipro - vendor profile - worldwide

Worldwide | 2017

SITSI I Vendor Analysis I Vendor Profile

WIPRO - VENDOR PROFILE - WORLDWIDE

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TABLE OF CONTENTS

LIST OF FIGURES

DOCUMENT INFORMATION

PAC'S ANALYSIS

PAC's Opinion

Strategy Review

SWOT Analysis

Positioning in PAC's 2016 IT Services Rankings – Worldwide/by country

Main Changes 2016 / 2017

Hot News

ACTIVITIES ANALYSIS

Analysis of Products & Services

Analysis by Vertical Expertise

Top Accounts

Latest Deals & Projects

Mergers & Acquisitions

PERFORMANCE ANALYSIS

Financial Record

Breakdown of Worldwide Revenue

Breakdown of Worldwide SITS Revenue by Market Segments

Breakdown of Worldwide SITS Revenue by Vertical Sectors

Performance Review

GENERAL PRESENTATION

General Information

Brief Description

Legal Organization

Business Organization

ABOUT PIERRE AUDOIN CONSULTANTS

SITSI | Vendor Analysis | Vendor Profile | Wipro | Worldwide | 2017 2

LIST OF FIGURES

Horizontal Expertise of Wipro

Software Product Portfolio of Wipro

IT Services Portfolio of Wipro

Vertical Expertise of Wipro

Financials (as reported)

Total Revenue by Segments (PAC estimates)

Total SITS Revenue by Segments - Shares and Growth Rates (PAC estimates)

Total SITS Revenue by Vertical Sectors - Shares and Growth Rates (PAC estimates)

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DOCUMENT INFORMATION

Authors: Biswajit Banerjee ([email protected])

Quality check: Katharina Grimme ([email protected])

Publication date: 2.02.2018

Modification date: 2.02.2018

Scope ID: Worldwide | 2017

Portfolio ID: SITSI I Vendor Analysis I Vendor Profile


Wipro, one of the world's 20 largest IT services company, successfully managed to transform itsbusiness after a series of structural changes, including a number of internal organizationalmodifications. However, this also reflects the fact that Wipro is more agile than its peers when it comesto change and running the business. Current CEO, Abid Ali Neemuchwala, has been successful so farin bringing new perspectives to the company, both in terms of leadership and its offerings. PACbelieves that Wipro is now heading in the right direction for greater success in the future.

Wipro, in FY16, set a target of USD 15 billion annual IT services revenue by 2020. However, looking atthe company's growth rates in the last two fiscal years, this seems to be a highly aggressive statementfrom Wipro, especially at a time when clients are moving from cost arbitrage to paying on an outcomebasis and investing in technologies such as cloud, mobility, and analytics where project volumesare certainly not as high as for traditional infrastructure or application services.

Other challenges are also expected to hinder Wipro's 2020 revenue target. For example, the numberof Wipro clients with deals valued above USD 100 million is not increasing. Wipro's revenue from theutilities sector, one of the key industry segments for the company, has seen serious decline in recentyears due to pressure on the global crude oil price. Other verticals, telecom and retail, are also notperforming well. Wipro's revenue concentration from the BFSI (banking, financial services andinsurance) vertical is lower compared to its peers.

However, Wipro is focusing on executing strategies that the company has developed over the recentyears which are focused on business growth and long-term customer relationship. Wipro isaggressively investing in new technology areas through start-up initiatives, M&A, innovation andacademia partnerships.

Wipro has followed many of its peers and set up a dedicated division called "Wipro Digital" two yearsback with full-stack developers and with the aim of helping its customers by enhancing their businessvalue using emerging technologies. Digital is one of the key focus areas for Wipro and the companyhas invested both organically as well as inorganically to develop its digital services offerings. Themost important acquisition by Wipro's digital side business was Designit, which is a strategic design firmwith 500 designers largely based out of Europe. Designit allowed Wipro to win strategic deals in thedigital transformation area. The company's recent acquisition of Cooper will further strengthen Wipro'sdigital practice, especially when it comes to design and innovation capability. This acquisition will alsoexpand Wipro's reach in the North America region.

PAC'S ANALYSIS

PAC's Opinion


Wipro will continue to build its capabilities around digital and IP-led services by investing in M&A andpartnerships to augment its offerings. The company has enhanced its offerings around new-agetechnologies, including IoT (the Internet of Things), automation, platforms, and as-a-servicemodels. On the M&A side, Wipro is more aggressive and focused on both inorganic and organic waysof achieving success. PAC expects Wipro to acquire more boutique design firms and analytics andcloud computing companies, which can contribute to the company's overall growth, both in terms ofrevenue and new customers.

Wipro has long had one of the most developed infrastructure service propositions among offshoreplayers. Among other key products, ServiceNXT™ and the cognitive AI-based (artificial intelligence-based) automation platform Wipro HOLMES™ are more talked about. Wipro HOLMES is alreadygenerating significant revenue for the company and Wipro is expecting more strategic client wins in thefuture. The infrastructure services market is set to be transformed over the coming years through theunstoppable rise of the cloud and the increasing use of automation. Wipro is looking to roll with thesetrends through various initiatives, including strategic investment and partnerships. While this marketsegment may grow slower, because of its size it will still generate significant revenue and profit forWipro.

The USA and Europe account for approximately 75% of Wipro's total business. A key focus for thecompany is Europe, which is doing well under the new leadership team. Recently, Wipro engaged withone of the top 10 banks in Europe for a large-scale digital transformational engagement. Earlier, thecompany has scored substantial wins in Austria, Denmark, and Sweden – a typically challengingmarket for Indian providers – as well as several further wins in other parts of Europe.

Traditional business is becoming commoditized and incremental growth is arising from new technologyareas in which Wipro is focusing strongly with a range of different initiatives, including the acquisition oftalent from start-ups. Additionally, large deals are getting squeezed and Wipro needs to focus onsigning smaller projects, both in the field of digital and new technology areas. Currently, Wipro's digitalpractice contributes around 22% of the company's total revenue. PAC believes that Wipro’s structuralchanges are fast maturing within the organization; however, the company still needs to focus morestrongly on improving customer satisfaction and mining existing accounts more successfully, though itis gradually moving in this direction.

Wipro has developed focused strategies that set priorities for addressing the 'Run' and'Change' agendas of its customers. The 'run' strategy is centered around modernizing the core of theclient's process and technology landscape, while the 'change' strategy is more focused on helpingclients achieve digital transformation, enabled by the digital capabilities of Wipro and its partnerecosystem.

Run business:

Wipro is focusing on integrated services across prioritized verticals, service lines, and geographies.The primary aim of this focus area is to help clients improve their productivity and efficiency with thehelp of integrated end-to-end technology solutions like applications, infrastructure services, andanalytics. The aim is also to enhance Wipro's footprint and wallet share within the key client basethrough cross-selling of multiple services.

Wipro's investments are geared more towards market demand for delivery of integrated services. The

Strategy Review


company is investing in 'as-a-service' consumption models such as BPaaS (Business Process as aService) and Insights as a Service. Wipro's BPaaS platform integrates across IT infrastructure,application platforms, and business operations and provides clients with a consumption-based pricingmodel; while the company's Insights as a Service accelerates time to insights using the Data DiscoveryPlatform (DDP).

The company is close to achieving enterprise objectives focused on cost reduction with improvedquality of service and reliability. Wipro is working towards simplification of the client technologylandscape through consolidation, elimination of legacy activities, and hyper automation. It is focusingstrongly on its hyper-automation initiative as the company believes that cognitive and RPA (roboticprocess automation) are drastically changing traditional IT delivery models. The company hasdeveloped Wipro HOLMES™, a cognitive AI platform based on open-source software, which sawsignificant adoption in the last couple of years.

In 2016, Wipro started a journey through implementation of simplification programs – primarilythrough implementation of hyper automation – across its existing clients and then the companyis extending this program to new customers for large-scale implementation. One example of thecompany's simplification programs is FAST (Framework for Application Services Transformation),which includes new methodologies such as AgileBase and DevOps. This journey is a process thatWipro is using to enhance its capability and scale through a larger partner ecosystem and thecompany is aggressively investing in M&A, start-ups, alliances, and other strategic partnerships. Thecompany has created a dedicated unit to strengthen and widen the alliance ecosystems – withcustomers, start-ups, and academia – to drive go-to-market outcomes, create new markets andsolutions, and expand in key verticals and geographies.

Wipro is driving localization initiatives in key geographies by increasing diversity and the percentage oflocal employees and consultants in order to respond to the changing client/market demand. In the last2-3 years, the company has increased its investment to enhance its local presence in variousgeographies, including in the US and Continental Europe. For example, Wipro acquired HealthPlanServices (US), Cellent AG (Germany), and InfoSERVER (Brazil) to enhance its footprint in its targetgeographies. In addition, Wipro will continue to localize the workforce in its key markets throughcampus and lateral hiring, as well as invest in delivery centers in key geographies, such as the US andUK, and also in growth markets, such as Latin America, Canada, and Africa.

Change business:

Wipro is following some key themes to drive its change strategy. The company is investing in buildingdigital advisory, design, architecture, and engineering capabilities to significantly enhancemarket access. Businesses and IT stakeholders are leveraging Wipro's investments for digital-pod-based or onshore-pod-based co-creation through the Designit® and Buildit® platforms. Wipro hasintegrated its consulting practice into Wipro Digital, which has helped the company to increase demandfor digital services and enhance engagement with its client's business stakeholders. More importantly,Wipro's acquisition of Designit was a good strategic decision because it enhanced the company'sdesign capability and helped it to win strategic clients, e.g. a large-scale digital engagement with one ofthe big banks in Europe. To further enhance the company's capability in digital technologies, Wipro isdeveloping a team of 40,000 to 50,000 'digital-ready' professionals with specific skills around design,coding, architecture, data science, engineering, cloud, cyber security, mobility, and digital marketing. Inaddition, the company is launching digital CoEs and digital pods across various important locationsto enhance horizontal offerings around cloud computing and IoT, create disruptive solutions, IP andplatforms, and provide digital services at close proximity to its customers.

Non-linear revenue growth is one of the key strategic priorities for Wipro and the company has formeda dedicated unit to drive this. This unit will leverage IP-based products, platforms, and solutions that


were acquired through the (earlier) acquisition of Gallagher Financial Systems Inc., Opus CapitalMarkets Consultants LLC, HPS, and ProMAX Applications Group (PAG), through organically developedplatforms such as HOLMES™, frameworks, and solutions, as well as through innovative commercial,delivery models, including AI, open stack, and IoT. PAC believes that Wipro's change strategy hashelped the company to move in the right direction. For example, Wipro HOLMES™ has already seenmany use cases and is set to bring more business for the company in the future.

Wipro is working towards an ecosystem strategy to invest in start-ups, M&A, academiapartnerships, and its Horizon program (internal idea incubator) to create a proactive andstructured approach to work within the innovation ecosystem. The company is investing in innovativestart-up companies through Wipro Ventures, a $100 million corporate venture capital fund, in areassuch as digital, IoT, big data analytics, open source, fintech, cyber security, and AI. The company hasalready spent USD 45 million (USD 20 million in FY16 and 25 million in FY17) on these technologyareas and has committed to invest more over the coming years.

M&A continues to be a key area that allows the company to acquire strategic assets and accelerate theimplementation of Wipro's growth strategy. The company has made some key strategic acquisitions inthe last 2-3 years. For example, Wipro acquired Cooper and InfoSERVER in FY17. While Cooperstrengthens Wipro's capability around digital services, InfoSERVER will enhance the company'sfootprint in Latin America. Earlier, Wipro invested in the acquisition of HealthPlan Services andthe Viteos Group, which further strengthens Wipro's capability in providing BPaaS solutions to healthinsurance companies in the US, and to the investment management industry in the US, Europe, andAsia. The acquisition of Cellent AG helped Wipro enhance its consulting capability, especially inGermany. Wipro also acquired the cloud services company Appirio in 2016 and the digital solutionscompany Designit in 2015. According to PAC, these strategic acquisitions have helped Wipro scale upits service offerings, which have already started to show success. However, Wipro needs to continue toimprove its consulting capability, with deep vertical expertise as well as digital technology capability soas to compete effectively in the future. The company is already working on this.

Wipro seems to be focused on its approach to better serve the needs of its customers. The company isinvesting in this direction and will continue to invest in additional future potential areas suchas blockchain, SDE (software-defined everything), and cyber security. The company has invested indeveloping IP advisory services, blockchain networks, and a blockchain partner ecosystem. In recentpast, Wipro has completed successful pilot projects around blockchain and is now focusing on largerollouts in the coming years. The company is investing to build deep capability around cyber security. Itis also investing in building CoEs to focus on software-defined storage, software-defined networks,software-defined data centers, and cloud computing.

Wipro is also working on an organic incubation program called 'Horizon Program' to find new ideas inemerging areas such as AI, cloud computing, cyber security, digital CX, digital marketing, automation,and IoT or Industry 4.0. PAC believes that such initiatives will bring fresh energy to the company's workenvironment, as well as bring new customers and sources of revenue in the mid- to long-term.


STRENGTHS WEAKNESSES

Wipro is heavily focused on developing and

strengthening capabilities around digital, IoT, AI, big

data analytics, and open-source technologies.

The company continues to build out Wipro Digital to

enhance focus on newer technologies. Beside

strengthening its digital practice through IP, platforms,

and Digital CoEs (centers of excellence), Wipro is also

building a large talent pool – both through reskilling and

new hirings – to meet the growing demand for digital

services from customers.

The company's ecosystem strategy to invest in start-ups,

M&A, consulting partnerships, and academia

partnerships puts Wipro in a position to harness the

latest technologies and help clients deliver business

capabilities.

Wipro has a balanced portfolio across industry verticals,

service lines, and geographies.

The company's growing portfolio of IP and IP-led

offerings are being used to automate and improve

service delivery.

A strong portfolio, a growing client base, and increasing

market share in application-related project services, AM,

and infra outsourcing segments. In particular, the

company has a growing number of SAP and Oracle

consultants, further strengthening its application

services business.

Wipro has invested heavily in its global delivery

framework and onshore capabilities, which has given

the company a global presence, underpinned by

regional delivery organizations and infrastructure.

Wipro's delivery network is largely focused on the US

and India. This is an aspect that is less advantageous

with regards to potential customers in Europe who

prefer a local delivery.

Wipro’s business in Continental Europe is relatively

small. However, this is improving with a number of

recent wins in Europe as well as acquisitions.

Marketing and branding still requires tactical effort.

While Wipro’s marketing and branding is competitive

when compared with Indian peers, the company lags

behind global leaders in sales and marketing

spending.

Wipro lacks a sizable revenue from the transport

sector and high-volume public sector industry vertical,

especially in the US and UK.

SWOT Analysis


OPPORTUNITIES THREATS

There are huge opportunities in supporting

digital transformation and massive potential

both domestically ('Digital India') and in supporting

its international clients, especially in the US and Europe.

IoT is considered to be the next big disruption

and manufacturing companies, especially in the US

and Europe, have understood the contribution that

this technology could make to their businesses. Wipro is

in a good position to take advantage of this, especially

with its focused investment in this technology area.

Wipro has increased its ability to participate in mega

deals, due to the company's growing scale and domain

expertise.

The company's investments in Europe are paying off,

even in challenging economic times, which is enabling

Wipro to increase its business in Continental Europe.

Wipro is making progress on localization initiatives

across the globe. The company's expansion of local

workforces is leading to increased understanding of

local customer demands and a better position to bid for

higher value transformational, process-design, and

consulting engagements.

There is strong competition from Indian

providers like TCS, Infosys, HCL, and Tech Mahindra –

companies that enjoy superior margins and can

potentially undercut prices.

As Wipro’s footprint grows – both functionally and

geographically, especially in Europe – it faces head-to-

head competition from Western IT service giants like

Accenture, IBM, and Capgemini.

There is a shortage of IT professionals in high-growth

areas (digital, security), along with increasing labor

costs.

The large share of India in Wipro's global delivery

network is a potential risk that must be addressed both

through re-balancing as well as automation initiatives.

Some countries and organizations have expressed

serious concerns about the perceived association

between offshore outsourcing and the loss of jobs

domestically. This could negatively impact Wipro's

growth in terms of revenues and profitability, especially

under the current US administration.


REGION/COUNTRY RANK MARKET SHARE

Worldwide # 18 0.9%

EMEA # 16 0.9%

Austria # 23 0.7%

Denmark # 21 0.9%

Finland # 8 2.9%

Germany # 46 0.4%

Netherlands # 13 1.6%

Norway # 24 1.0%

Sweden # 28 0.7%

Switzerland # 12 2.0%

United Kingdom # 10 2.3%

Americas # 18 1.1%

United States # 17 1.1%

Asia Pacific # 30 0.5%

India # 4 3.2%

Only those countries considered in which the profiled company appears in our standard SITSI® vendorrankings.

Positioning in PAC's 2016 IT Services Rankings – Worldwide/by country


Sep 2017

Launch of a new digital pod in Edinburgh, Scotland was announced by Wipro. This new digital pod

is another step from the company towards providing digital services at close proximity to its

customers in the UK and Europe. Wipro has 15 other digital and design pods across the globe

including London, New York, Copenhagen, Oslo, Stockholm, Madrid, Mountain View, Munich,

Sydney, Tel Aviv, Bangalore, and Tokyo.

Launch of an Automotive Center of Excellence (CoE) in Timisoara, Romania was announced. This

CoE will help Wipro deliver embedded software solutions for its global and European clients.

Aug 2017

Launch of a Silicon Valley Innovation Center in Mountain View, California was announced. This

state-of-the-art R&D and incubation hub is designed to develop and showcase next-generation

technologies and solutions for enterprises.

Launch of a data recovery platform was announced, which is a big data analytics-as-a-service

solution on Microsoft Azure.

Jul 2017Partnership with Hewlett Packard Enterprise (HPE) announced to offer IT infrastructure solutions in

a consumption-based or pay-per-use business model for enterprises.

Jun 2017

Collaboration with Red Hat announced to set up – using Red Hat OpenShift Container Platform –

a cloud application factory designed to offer developers and IT teams a repeatable and rapid

methodology for application modernization across public, private, and hybrid clouds.

May 2017

New brand identity of the company is announced. As part of the new brand identity, Wipro unveiled

a new logo, which represents the way the company “connects the dots” for its clients' requirements.

According to Wipro, the new logo also highlights Wipro’s strong technology heritage and reflects

its capabilities for the future.

Launch of nine blockchain-based solutions announced, which are to accelerate adoption of

blockchain across the banking, financial sector, insurance, manufacturing, retail, and consumer

goods industries.

Main Changes 2016 / 2017


Mar 2017

Expansion of the Wipro Science Education Fellowship program in the US, jointly with the

University of North Texas at Dallas (UNT Dallas), announced. This multi-year program will involve

more than 70 school teachers, with the aim of nurturing excellence in science, starting with the

public school systems of the Greater Dallas/Fort Worth (DFW) area.

Launch of the Wipro HOLMES™ Cloud BOT announced which leverages Wipro's BoundaryLess

DataCenter solution and the Wipro HOLMES Artificial Intelligence Platform™.

Launch of an Automotive Engineering Center (AEC) in Detroit announced. The center aims to

drive innovation in connected vehicle concepts – design, product engineering, digital customer-

vehicle experiences, artificial intelligence, and sensors-driven advanced vehicle data analytics.

Jan 2017

Retirement of T K Kurien announced, who will retire on January 31, 2017.

Strategic partnership with Tradeshift announced to offer cloud-based Source-to-Pay (S2P)

Business Process as a Service (BPaaS) solution.

Launch of Data Discovery Platform, Wipro's new big data analytics-as-a-service solution,

announced, which is developed on Bluemix and built with IBM BigInsights and IBM dashDB.

Nov 2016

Partnership enhancement announced with ASG Technologies, a provider of information access,

management, and control solutions, to provide compliance for global financial services companies

by integrating Wipro's data management CoE with ASG's enterprise data intelligence solution.

Launch of the Open Banking API (Application Programming Interface) platform announced

to enable banks and financial institutions to launch open banking initiatives and create new forms

of distribution channels and servicing capabilities, provide access to third-party application

marketplaces, and comply with emerging regulatory norms through the standardization of APIs.

Appointment of Gilles Grangé announced as regional head of the company's operations in France.

Oct 2016

Launch of 'Treasury DNA Decisions and Analytics' platform announced, which will digitally enable

global treasuries using cloud technologies. Treasury DNA is a next-generation platform with a

comprehensive suite of technology services delivered in a subscription-based model and is

powered by BELLIN’s tm5, a treasury management systems provider.

Launch of Wipro's DevOps platform, AgileBase, on Microsoft Azure announced. The AgileBase

platform can potentially reduce the DevOps set-up time by up to 90 percent, while eliminating

manual efforts vis-à-vis traditional deployments.


Wipro Reports Financial Results for F…

Last updated: 22 APR 2016

Wipro Reports Financial Results for Q…

Publication date: 19 JAN 2016


Last updated: 22 OCT 2015


Last updated: 5 AUG 2015


Publication date: 15 MAY 2015




Last updated: 20 MAR 2015


Publication date: 19 AUG 2014




Last updated: 21 MAY 2014

Hot News


Horizontal Expertise of Wipro

Cross-sectoral assessment considering the market shares in the respective segments. Scale: 10 = >10%, 9 = 7.5 to 10%, 8 = 5 to 7.5%, 7 = 2.5 to 5%, 6 = 1 to 2.5%, 5 = 0.5 to 1%, 4 = 0.25 to 0.5%, 3 =0.1 to 0.25%, 2 = 0.05 to 0.1%, 1 = < 0.05%, empty space = company not present in the respectivesegment.Market shares have been calculated at worldwide level, based on PAC estimates.

ACTIVITIES ANALYSIS

Analysis of Products & Services


Software Product Portfolio of Wipro



IT Services Portfolio of Wipro



Vertical Expertise of Wipro

Vertical Expertise: Sector-specific assessment considering individual solutions & resources. Scale: 9-10= very strong sector-specific expertise, 7-8 = strong sector-specific expertise, 5-6 = medium sector-specific expertise, 3-4 = weak sector-specific expertise, 1-2 = cross-vertical expertise only, 0 =company not present in the respective segment.SITS Market Share: Sector-specific assessment considering the SITS market shares in the respectivesectors. Scale: 10 = > 10%, 9 = 7.5 to 10%, 8 = 5 to 7.5%, 7 = 2.5 to 5%, 6 = 1 to 2.5%, 5 = 0.5 to 1%, 4= 0.25 to 0.5%, 3 = 0.1 to 0.25%, 2 = 0.05 to 0.1%, 1 = < 0.05%, empty space = company not presentin the respective segment.Market shares have been calculated at worldwide level, based on PAC estimates.

Analysis by Vertical Expertise


SECTOR MAJOR ACCOUNTS

Manufacturing

Outokumpu, Woodside Petroleum, Audi, ASSA ABLOY Ltd., Vestas Wind Systems,

JCB India Ltd., Philip Morris International Inc. (PMI), Ok Tedi Mining Limited

(OTML), Takeda Pharmaceutical Company Ltd., Corning Incorporated, Royal Philips

Electronics

BankingLloyds Bank, Al Rajhi Bank, Allied Irish Banks, p.l.c. (AIB), Emirates NBD, Citigroup,

Capital One

InsuranceRSA Insurance Group, Chaucer Syndicates, The Main Street America Group, Friends

Provident

Public SectorIndustrial Development Corporation (SA), Greater Cincinnati Water Works

(GCWW), Manipal Health Enterprises, Employees State Insurance Corporation (India)

Telecom Grameenphone (GP), T-Mobile, TalkTalk Telecom, Telenor

Utilities Thames Water, NRGi, Saudi Electricity Company (SEC), Xoserve, ATCO Ltd.

Retail & Wholesale 7 Eleven

Services & ConsumersValmet, McLaren Technology Group, innogy SE, Speciality Restaurants, Limited, DSM,

Lawn Tennis Association (LTA), Carillion Plc, DEN Networks

TransportGreater Toronto Airports Authority (GTAA), NSB Group, Mumbai International Airport

Limited (MIAL), Delhi International Airport Limited (DIAL), Saudi Arabian Airlines

Names based on PAC research, not approved by Wipro

Top Accounts


SECTOR / CUSTOMER LATEST DEALS & PROJECTS

Manufacturing

Outokumpu - under the five-year contract Wipro will provide IT application

management services.

Woodside Petroleum (AU) - Wipro to provide managed services for IT infrastructure,

leveraging its ServiceNXT platform, across Woodside's global portfolio.

PublicIndustrial Development Corporation (SA) - Wipro will help create technology access

for rural school learners.

TelecomGrameenphone (GP) - five-year IT infrastructure and applications managed services

engagement with the client.

Utilities

Thames Water (UK) - Wipro to help Thames Water implement an SAP industry solution

for utilities billing, along with a new market integration gateway and a cloud-based

CRM platform using SAP Hybris® Cloud for Customer. This deployment will leverage

Wipro SaFeWater Rapid Deployment Solution, which has pre-built water industry-

specific business processes to support the accelerated delivery of complex

transformations.

Services & Consumers

Valmet - IT applications managed services engagement.

McLaren Technology Group - Wipro will leverage the Wipro HOLMES™ AI platform

and its managed services framework to help client's digitalization drive across

its businesses.

innogy SE - seven-year contract to manage innogy's data center and cloud services.

Speciality Restaurants Limited (IN) - Wipro to implement its Managed Restaurant

Energy Services (MRES) program across the client’s full-service restaurants.

Latest Deals & Projects


SECTOR / CUSTOMER LATEST DEALS & PROJECTS

Transport

Greater Toronto Airports Authority (GTAA) (CA) - Wipro to provide IT and business

transformation services.

NSB Group (NO) - Wipro will implement its BoundaryLess DataCenter (BLDC) and

LiVE Workspace solutions and utilize its next-generation delivery framework

ServiceNXT.

Names based on PAC research, not approved by Wipro


ACQUISITIONS DISPOSALS

2017

Acquisition of Cooper, a design and business strategy

consultancy firm, was announced by Wipro Digital and

is the digital business unit of Wipro Limited. Cooper will

become part of Designit, Wipro Digital's strategic design

arm, further strengthening its design and innovation

capabilities, expanding its reach in North America and

adding capabilities in professional design education.

Acquisition of InfoSERVER S.A. announced by Wipro.

The company has spent USD 8.7 million for this

acquisition. InfoSERVER is an IT services provider

which is focused on the Brazilian market, providing

custom application development and software

deployment services.

2016

Wipro signed a definite agreement to acquire Appirio

(for $500 million), a global cloud services company that

creates next-generation worker and customer

experiences. Established in 2006, Appirio is

headquartered in Indianapolis with offices in San

Francisco, Dublin, London, Jaipur, and Tokyo and has

1,250 employees worldwide. Appirio is a trusted partner

to some of the world's leading brands, including Stryker,

Robert Half, Johnson Controls, Cardinal Health, Coca-

Cola, eBay, Facebook, Home Depot, and Sony

PlayStation.

Wipro signed a definite agreement to acquire 100%

shares of HealthPlan Services (for $460 million) from

Water Street Healthcare Partners, a strategic investor

focused exclusively on the healthcare industry. Since

partnering with Water Street in 2008, HealthPlan has

grown to become an independent technology and

business-process-as-a-service (BPaaS) provider in the

US health insurance market. Headquartered in Tampa,

Florida, HealthPlan Services employs over 2,000

associates.

n/a

Mergers & Acquisitions


ACQUISITIONS DISPOSALS

2015

Wipro acquired Designit for €85 million (close to INR 6

billion), a Denmark-based strategic design firm

offering digital solutions for the healthcare, telecom,

banking, and automotive sectors. Designit has 300

employees and nine offices globally, including those in

Copenhagen, Stockholm, Munich, and Oslo.

Acquired Cellent AG for €73.5 million (close to INR 550

million), a Germany-based IT consulting and software

services company offering IT solutions and services to

its customers in the DACH region. Cellent AG has more

than 800 consultants, who will now become part of

Wipro.

Acquired BPaaS provider Viteos Group for $130 million

(close to INR 9 billion). The Viteos Group is

headquartered in the US and offers customized straight-

through processing and integrates post-trade operations

across every asset class, currency, border, or structure

for the alternative investment management industry in

the US, Europe, and Asia.


Financials (as reported)

PERFORMANCE ANALYSIS

Financial Record


Total Revenue by Segments (PAC estimates)

Breakdown of Worldwide Revenue


Total SITS Revenue by Segments - Shares and Growth Rates (PAC estimates)

Breakdown of Worldwide SITS Revenue by Market Segments


For detailed figures, please refer to the Company Figures file (Excel).

Total SITS Revenue by Vertical Sectors - Shares and Growth Rates (PAC estimates)

Breakdown of Worldwide SITS Revenue by Vertical Sectors


MAJOR GROWTH DRIVERS MAJOR OBSTACLES

Continued investments in new technologies, including

digital, automation, cognitive computing, IoT, and AI

capabilities, are driving the company's growth and

transforming Wipro into a competitive technology

company with consulting capabilities.

Wipro has developed a strong set of IP around new

technologies (including cloud-based IP) and

strengthened its position in the digital space. In addition,

the company has formed strategic partnerships with

players across cloud infrastructure, platforms, and

applications. This has resulted in sustainable growth for

the company in FY17.

In the last 2-3 years, Wipro has invested significantly in

acquisitions. In particular, the company's acquired entity

Appirio has increased Wipro's capability around cloud

application services which resulted in good

performance for the company in FY17.

Over the past 2-3 years, Wipro has made several

changes to its organizational structure to simplify

processes and reduce the number of layers in the

organization. This has resulted in improved business

growth.

Wipro's balanced strategic focus on newer digital

technologies as well as on core services areas is

helping the company to maintain sustainable growth. In

FY17, Wipro managed to win strategic client projects

from both the digital technology side as well as from

infrastructure and application management services.

Company growth was supported by significantly

increasing revenues from services & consumers,

insurance, and public sector clients (growth from these

sectors was 34%, 10% and 42% respectively in FY17).

The drop in global crude oil prices has negatively

impacted Wipro's business in the manufacturing and

utilities industries. This was reflected in the company's

financial result in FY17, especially in the utilities sector,

where Wipro registered negative growth.

The company's revenue from the telecom industry sector

also registered low growth in FY17.

The IT services market is highly competitive and Wipro

is experiencing margin pressure due to competitive

pricing.

The industry is undergoing rapid changes due to the

pace of developments in technology. This has resulted

in a high level of investment in

technologies (development, partnerships, and

acquisitions), which have had a negative impact on the

company's profit margin.

Currency exchange fluctuations, political uncertainties,

and changes in regulations in different operating

countries are also obstacles to growth.

Performance Review


Wipro Limited Management

Doddakannelli, Sarjapur Road,

Bangalore - 560 035

India

Tel: +91 (80) 2844 0011

Fax: +91 (80) 2844 0256

www.wipro.com

Azim H. Premji: ChairmanAbidali Z. Neemuchwala: CEOJatin Dalal: CFOBhanumurthy B. M.: President and COORishad Premji: Chief Strategy OfficerAnkur Prakash: VP, New Growth & Emerging MarketsRajan Kohli: SVP, Wipro DigitalManoj Nagpaul: VP, Asia Pacific & JapanSreenath A V: SVP, IndiaChristophe Martinoli: VP, Continental Europe

GENERAL PRESENTATION

General Information


Wipro Limited (NYSE: WIT, BSE: 507684) is an India-based multinational provider of IT services,consulting, and outsourcing services.

The company was incorporated in Mumbai in 1945 by Mohamed Hasham Premji as Western IndiaProducts Limited, later abbreviated to Wipro. In 1966, Azim Premji took over Wipro as Chairman at theage of twenty-one. He was instrumental in transforming Wipro into a multi-billion dollar diversifiedcorporation.

In 1980, Wipro launched IT services for the domestic market soon after the Indian government threwout the US giant, IBM, following investment and intellectual property disputes. By 1985, the companyhad diversified into software services and the manufacturing of PCs and workstations. At that time,Wipro also assembled and distributed hardware for US companies like Nortel, Sun, and Cisco. Itsreputation as a system integrator was firmly established by 1989 with Wipro GE Medical Systems, ajoint venture with General Electric, which led to R&D contracts with major companies, including Cisco,Hitachi, and Alcatel.

In the 1990s, Wipro began to shift its IT business from on-site development projects in the USA to moreprofitable offshore development projects. The company replicated the development labs of some of itsmajor clients, including AT&T, IBM, and Intel. Additionally, while Wipro continued to offer a range ofprogramming services, including hardware design, networking, and communications and operatingsystem support, it also began to diversify into other lines of business. In 1998, it became the firstsoftware service company in the world to be awarded an SEI CMM Level 5 certification for itsapplication development practices.

The period from 1991 to 1997 saw Wipro undergo six corporate restructuring initiatives. In 1999, itseparated into four companies, providing software, hardware and systems, consumer care and lighting,and hydraulic fluids. Then, following another major restructuring in 2000, Wipro set out to developcomprehensive, end-to-end solutions, which included both software services and hardware, creatingproducts under its own brand name. Moreover, in 2000, Wipro was listed on the NYSE, therebyexpanding its international reputation and investments. That same year, the company also acquired itsfirst BPO business, Spectramind, for US$90 million. In February 2001, Wipro became the first softwaretechnology and service company in India to achieve the ISO 14001 certification, before achievinga PCMM Level 5 certification in 2002. This is when Wipro rolled Spectramind into its core business andrenamed the subsidiary Wipro BPO. Wipro also launched a dedicated healthcare and life sciencesbusiness division providing genetic data software. In 2006, Wipro acquired cMango Inc., a US-basedtechnology infrastructure consulting firm.

In April 2008, Wipro reorganized its IT businesses by combining its global IT service andproduct business with its India and AsiaPac IT service and product business, and appointed joint CEOsfor the combined IT operations. In 2011, it restructured yet again, reverting to a single CEO for the ITbusiness. The company's restructuring process continued thereafter and most recently, Wiprorestructured its senior management to simplify processes and reduce the number of client-facinglayers.

Wipro is now a truly global corporation with operations in over 70 countries. It comprises more than 60subsidiary companies, plus various joint ventures. IT services are now the biggest part of its businessby far. Wipro demerged its non-IT business segments in FY12/13 to strengthen its primary focus on itslargest IT business. Wipro has over 70 development centers worldwide with more than 50% of those

Brief Description


located outside India. In FY17, Wipro added two more multi-client delivery centers in the US. It usesthese delivery centers together with quality processes and a global resource pool to provide ITsolutions and deliver time-to-market and time-to-development advantages to its large pool of activeclients. As of March 31, 2017, Wipro had more than 160,000 employees worldwide and a network ofover 10 data centers spread across the US, Europe, and the APAC region.

In 2017, Wipro unveiled a new brand identity with a new logo, which represent the way Wipro 'connectsthe dots' for its clients in today's digital worlds. According to Wipro, the new identity reflects thecompany's transformation in the diverse, yet deeply connected world. It captures thecompany's expanding ability to generate insights from interconnected perspectives, and to bring theseinsights to bear directly on innovations which drive Wipro's clients’ business success.

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