Professional Documents
Culture Documents
Wipro Limited
Wipro Limited
Wipro Limited
1
Safe Harbor
This presentation may contain certain “forward looking” statements, which involve a
number of risks, uncertainties and other factors that could cause actual results to differ
materially from those that may be projected by these forward looking statements.
These uncertainties have been detailed in the reports filed by Wipro with the Securities
and Exchange Commission and these filings are available at www.sec.gov. This
presentation also contains references to findings of various reports available in the
public domain. Wipro makes no representation as to their accuracy or that the company
subscribes to those findings.
2
Agenda
3
Business Update
Suresh Senapaty, CFO
4
Presentation Flow
5
Wipro Ltd has grown revenue at a 34%* CAGR and
Net Income at a 30%* CAGR for the last 5 years
1.Incorporated in 1945
– Businesses include
• IT Business;
• Consumer
Care &
Lighting;
• Infrastructure
Engineering
IT Products
14%
Consumer
Care & IT Products
Lighting IT Services 3%
8% 92% Consumer
IT Services
Others Care &
75%
3% Lighting/
Others
5%
*Growth Rates are calculated based on IGAAP INR numbers which is our reporting currency; All numbers are IGAAP Financial
numbers translated into USD on the basis of realized exchange rate 6
Wipro’s IT Services Business has grown at a CAGR
of 34% in the last 5 years
$ Million
1,952
840 Global clients 2,000 1,458
1,011
• 191 Fortune 1000/ global 500 clients 1,000
• 840 active clients as on Sep 30, 2009 with a repeat
business ratio of over 98% 0
FY04 FY05 FY06 FY07 FY08 FY09 H1FY10
Attracts the Best Talent
97,891 Associates
• 97,891 associates from 65 nationalities Operating Income & Margins (%) (1)
• One of the top 3 recruiters in India
Industry Expertise 30
48 26.4%
58 Centers of Excellence 24.6% 24.3%
21.9% 23.1% 26
Global Presence
54 Countries
Note: (1) Operating Income for FY05 to FY07 represents Global IT services while for FY08
• 72 Global Development Centers and FY09 represents IT Services Segment owing to segment reclassification w.e.f. FY09
7
A diversified and de-risked broad based portfolio
2.4%
1.9%
0.7%
0.8%
23.8%
21.0%
WIN-Eco-energy:
• Multiple contract wins in the Renewable Energy space ,
across a range of technologies
• Resounding endorsement of our value proposition with
our customers
• Tie ups with product vendors and research institutions to
bring IT integration domain skills into renewable energy
space 10
Consistent Track Record of meeting and exceeding
investor expectations
Financials as of FY 08/09 11
Presentation Flow
12
Indian IT Industry Today
1558
Indian Exports As
% of Global Spend
886
~5% ~11% ~1% ~3%
557
46.3
26.5 115 12.7 7.1
• Despite the growth India has seen in Global IT Services market, it is still a very small
proportion (~3%) of global spend
~60
46.3
25.0
40.3
12.8
31.4 10.9
23.6
8.4
17.7 With Current
6.3 Initiatives
4.6 34.5 35.0
6.2 29.4
23.0
0.9 13.1 17.3
5.3
FY00-01 FY04-05 FY05-06 FY06-07 FY07-08 FY08-09 2011 2020E
CAGR of 13% to 19%
• Continue to deliver strong growth and operating profits across IT and Non
IT Business’
• Systematic focus on driving business model change has Increased FPP mix
by almost 10% in the last 6 quarters
• ROCE for IT Services business increased from 39% for FY09 to 46% at the
end of Q2 FY10
16
Voice of the Customer
Martha Bejar, President, Global Sales & Operations
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Situation a year ago
Wipro’s
Service Lines
Large Sharing risks
transformational
deals Differentiated
offering Risk – Reward
Consulting led /SLA Driven
deals engagements
Operational Excellence
Creating
Game
Customer
Changing
Value /
Solutions
satisfaction
Mature
Driving
Markets
Sales
&
Operational
Emerging
Excellence
Markets
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Creating Customer Value/ Satisfaction
Business Benefits
CoE’s
Strong +
Vertical IT
Solution Game changing Transformation
Knowledge Accelerators solutions
+ • Morrisons’
S/W Engr. • Origin
Tools & • Harman
Methodology • Aircel
+ • DIAL
Global • ANA
Consulting Delivery Enhancing
• AmBev
& Engine Customer
Practice Value
Account Management
• Understanding Of Customer ‘s Business
• Solving Customer Problems
• Services and Solution Knowledge
• “Relationship” Selling
• Delivery Excellence
24
Expanding our global footprint
USA
New York, New Jersey –
Headquarter
Mountain View
Seattle
Canada
Chicago
Dallas
Houston Europe
Minneapolis China
Austria
Atlanta United Kingdom
Boston Germany Headquarters
Japan
Columbus France
Miami Finland
Nashville Luxembourg Dubai
Thailand
Troy Mexico Netherlands Egyp
Brea Poland t Taiwan
United
Infocrossing: Portugal Arab India
Broomfield Romania Indonesia
Emirate
Dayton Sweden Malaysia
s
Saudi Arabia
Jefferson City Switzerland Singapore
Leonia Brazil
Norcross Australia
Omaha Argentin
Phoenix a
Roselle (Chicago)
Tampa New Zealand
Tempe
Westwood
Woodland Hills
25
Applying Thought - Creating Value - Driving
Customer Enthusiasm
All this for just one reason…
26
Function
Business Process Outsourcing
Transformational Solutions for Back AND Front Office
27
Contents
28
Evolution of BPO : taking it beyond 2010 …….
Customer Benefits
Business Benefits & Transformation
§ Flex the Outcome to align changing business • Making the costs variable
climate
Productivity Improvement
§ Operational Excellence & • Efficiency Gains
exceeding Customer Metrics
(Enablers - Six Sigma, Lean….) • Quality and Repeatability
§ Domain Skills and Process • Knowledge Capture and
Knowledge Management
Standardization
§ Savings through Labor
Arbitrage & • Process
Standardization Standardization
§ Capturing and • Labor Cost Savings
Standardizing Ops
Procedures
“Transformation”
- Can BPO Outcome Managing Complex
Vendor
Gains beyond mere align to changing Regulatory and
Consolidation
Cost Savings business climate? Compliance Issues
Volume SLA’s are Shift in Priority – E.g. Multi Country VAT Global Scale –
inadequate & “Growth” in H1 08 to Language, proximity,
outdated “Conserving Cash” in Revenue local biz needs
H2 08 or Better Recognition norms
YoY efficiency Consumer Exp Vs under IFRS/GAAP Reduced Governance
gains are table Cost of Service costs with Effective
stakes M&A leading to SOX Compliance and common
Plethora of business dashboard
Will you facilitate apps: E.g. SAP in the
delivery of company but Oracle/ Ability to shift work
Business Results? JDE in acquired org. across locations
$2.5 Mn
Standard BPO
Cutting down inventory Write off by 2-3% $ 0.9Mn
Improved adherence to Customer Required Delivery (CRD) lead time –
Improved CSAT $2.2
Mn
Ensure high value orders are cleaned and logged in time for
predictable revenue guidance – priceless!!
More benefits depending on the customers needs
32
Base))) – Our Technology Toolkit for Back Office
Transformation
Web based Dash board for complete visibility of your business process
Drill down capabilities–by parameters like date/value/region/ customer/
Transparency product….
33
Transforming the Front Office
Unprecedented Unlocking value Wipro Process
levels of rich of Excellence & Quality
data unstructured data Framework
Email
Chat logs Data
Analytics
Web 2.0
Communities
Switch
Reports
Automation and
Self Service Roadmap
Acceleration
Empowering BackOffice with
Effectiveness
Base))) Efficiency
Transparency
Compliance
36
We help run companies
who run our daily life!
55% 52%
India Brazil
80% 52%
Malaysia UK
Given $1,000, what will I do? 83% 41%
Global average US UK India
Have you done this in last 6 months?
1 Put it in a bank 35% 29% 34% 52%
(savings /cash US UK India
deposit) Purchasing 14% 16% 5%
2 Pay off / pay 17% 35% 23% 6% a car
down debt Purchasing 7% 6% 11%
a home
3 Spend it on 15% 7% 22% 7%
something fun Adding onto 10% 7% 30%
(holiday or luxury a home
goods et al) Going on a 23% 10% 22%
holiday
Source: Synovate Global Money and Finance Survey, Nov 2009 overseas
38
A roller coaster year, bouncing back!
Loss Prevention
Non-asset base
Mfg excellence
Globalization
Cross Channel
Smaller Store
Merchandize
innovation &
Expanded
revenues
Footprint
Ancillary
Product
Key Trends
Be a result-oriented
Business Transformation Partner
Customer Experience
Home &
Health & General Food & Apparel &
Grocery Specialty Merchandize
Personal Tobacco
Wellness Beverage Footwear Care
Travel
Airlines Logistics Couriers Leisure
agencies
Business Transformation
Business Function •ERP Implementation,
Large
Outsourcing •E-commerce
Department
•BPO, Advanced Analytics
Store in US
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We have aligned our vision and offerings with key
industry imperatives, e.g. Retail
Retail Imperatives
Simplify & Integrate [Business + Process + Technology]
Superior
customer
Experience Channel Services
Transformational
Mobile &
Stores eCommerce Social media
X Channel
Operational
Services
Services
Competitive
cost Supply Chain
structure
Merchandize
Industry
Efficiency Corporate
Retail Solutions
POS Energy Managed Customer Demand Workforce
Property Shrink Associate Training
Mgmt eCommerce Experience Mgmt Mgmt
43
We have aligned our vision and offerings with key
industry imperatives, e.g. CPG
• Manufacturing Operations
Manufacturing Excellence
• Demand Management for
• Recipe Management
Fresh Foods Industry
• Sustainable Manufacturing
• Trade Promotions
Sales & Management • Social Collaboration
• Market Mix Modeling
Platform
Marketing • Brand Eenchmarking
44
We continue to build relevant industry solutions and
innovative customer centric solutions
In -Store Visibility
• LP Infrastructure
• Visibility Applications
Merchandising
• Assortment & Assortment
Optimization
• Gross Margin Optimization
• Web Presence Sentinel, Search Rank Analyzer
• A multi dimensional view for the digital merchandiser/ marketer
• Provides ability to measure brand reputation online across 350
information sources Supply Chain
• Ability to compare performance on various search engines as
• In-Store Inventory
compared to competition
Optimization
• Tools to analyze real time competitive product pricing • Integrated Logistics
45
.. and align to the next generation
Cloud
• Manufacturing Excellence
• eCargo
• Carbon Accounting for Airlines
Green IT
• Supply chain solutions
• Logistics process optimization platform
• Analytics
Collaboration
Information Mgmt
Mobility 46
Solutions lab for delightful customer experience
Wipro first Green Lab Gen X tools, solutions and proto-types Remote live demos
47
In Summary, we help run companies who run our
daily life
Be a result-oriented
Business Transformation Partner
Segment
Domain Segment
Focus
Strengths Focus
48
Enabling the 21st
Century Corporation
49
Leading organizations are thinking about operating
in a different way…driving Business Model changes
When the economic recovery takes hold:
51
Wipro’s answer to this new world challenge
• Wipro is responding to this involuntary need for change by taking an objective vs.
subjective approach to the problem
• We have listened to our clients (primary research) and analyzed dozens of other
companies (secondary research) to understand how real systemic productivity change
can be undertaken and continuously improved upon – the research continues
• Done correctly, virtualization can lead to extraordinary productivity gains which in turn
lead to significant improvements in financial performance (ROE, Debt/Equity, Free Cash
Flow)
• What we have observed is that no company can optimize productivity in all core and
non core processes, this leads to suboptimal corporate wide productivity and financial
performance that is below what is achievable
• Our approach, by observing best in class companies, is to work towards a model of
optimizing what the company does best and partnering the rest
Stay dynamic & flexible & not held hostage by assets, speed to market
Rationalize & identify what is Core and Non Core to business success
Virtualize non core processes and some core processes - make the goal of higher
productivity the shared business imperative of “partners”
Joint objectives and targets between the client and its partners
Knowledge
Sharing
Transparency
Dedicated Inter-Firm
Investments Trust
Flexible
Operating
Agreements
Collaborative Advantage
-Jeffrey H. Dyer
54
Wipro believes that there will be four key building blocks for
transformation, productivity and superior financial performance
1. Core/Non Core
Analysis LEAN Are my non critical sub processes in the way of our
Process business, are all my processes optimized with respect to
Rationalization/ productivity?
Optimization
55
Wipro has all the capabilities to be a transformation
agent and virtual corporation “partner”
Wipro
BI/Analytics Energy Mgmt. Digital Content Managed
Services Services Services Services
56
Wipro provides three transformational options
Option 1
• Lean transform and maintain captive (core
and non core)
CUSTOM Utility
Governance
Option 2
TRANSFORMATION People & Process
• Lift + Shift + Lean Transform (sequential
or parallel, core and non core) current state
Applications
Infrastructure
Option 3
• Client moves directly to WIPRO Utility (non
WIPRO Utility
core)
• Re-use process Governance
TRANSFORMATION
• Best in Class People & Process
57
Virtualization has proven advantages if applied with the four
building blocks which drive productivity, flexibility and speed
High
Company
B
Company
E
Company
Degree of Virtualization
Company
D
Company
C
Company
G
Company
F
Low
58
Summary
• Analysts and CEOs agree that the fundamental unit of competition in the 21st
century will be multiple companies working together to create superior
productivity and financial performance - “Virtual Corporations”
• We believe the key to sustainable transformation are the four building blocks:
– Lean Process Optimization,
– Technology Innovation,
– Capex/Opex Optimization
– 4th Generation Partnering
• Wipro continues to invest in building the right expertise to help clients in this
transformation journey - Have hired in excess of 25 partner level people with
rich domain and industry experience
• Wipro is already involved in early stage virtual transformation with clients in
BFSI, Communications, Healthcare, Energy and others
59
Wipro Strategy
60
Wipro Today - Delivering the Integrated Services Portfolio
Domain led
Integrated IT Non-Linear & Technology
Solution Globalization
+ BPO GDM Innovation
Architecting
ADM
61
Permanent reset in the economic order -
7 Mega Trends….
Stay dynamic & flexible & not held hostage by assets, speed to market
Rationalize & identify what is Core and Non Core to business success
Virtualize non core processes and some core processes - make the goal of higher
productivity the shared business imperative of “partners”
Joint objectives and targets between the client and its partners
65
2 Innovating services & delivery models
Differentiated SDLC
Services Accelerators
• System Integration • Process Accelerators
• Specialized Services • Task and Profile
• Combinatorial Segregation
Services • Std. Accelerator
Components
66
3 Driving a robust Services Roadmap - Technology
Innovation
Strategic
Best in Class
Delivery
Global
Centres
Leadership
Globalization
Workforce
localisation
Strategic
Acquisitions
Strengthening
Global
Presence
Medium
• Strong Presence Term
in India,
Australia &
Middle East
• Market
developments &
presence in
LATAM & China • Scale in
LATAM and
China
Longer
Immediate Term
Infocrossing
• Pan-US local Hosting capabilities
with a Managed Services layer
providing a significant
• Enhancing domain & competitive advantage in large
technology competence TOS deals
• Expanding Service Line
portfolio CITOS
• Committed business from
• New geographies Citigroup of at least US$500mill
over 6 years
• Filling Strategic Gaps
• Exclusivity of TIS services for
Citigroup out of India & preferred
Vendor status for ADM work
delivered out of India
70
6 Driving Mega Alliances – Leveraging differentiated
channels to deliver customer needs
71
Strategic Actions will cut across multiple horizons..
Focus on new
Business
Models/Technologies - Cloud,
Automation, etc
Address customers’
Address customers’ Address customers’
Cost & Capital
Growth & integration Need for a Utility
Conservation
needs Model
Requirement
Sustain the Re-invent a
Build the
right Cost Model new Cost Model
right Cost Model
New Normal
Markets Domains
Technology
India/ Middle Healthcare
Cloud
East Govt./Defense
Collaboration
China / Security
Green
Latam
73
Thank You
74