Wipro is creating a major new line of business which will create solutions around cloud, mobility, and analytics. Some 3000 staff will be moved into this new unit which will be headed by Shaji Farooq, the executive who joined Wipro from Infosys in 2012.

Wipro is planning to report revenues of this new business line separately from Q1’FY14. The development has already started and one fragment of that business (analytics and information management) is already being reported as an independent business line, alongside infrastructure, BPO, consulting and technology.

This is the second major strategic shift in recent times from the company following Wipro’s decision to separate its Information Technology (IT) and non-IT businesses in Q3’FY13, to give a clearer focus on the IT business to overcome challenges such as reduced global IT spending, margin pressure, and strengthening competition.

In PAC’s opinion the effects of this move will depend on how Wipro leverages the new unit. The target audience for IT Industry is changing, and solutions providers must talk the language of business alongside technology. Companies have to think how IT can help business rather than showcasing only their technology strengths.

In this context, Ms Suchira Iyer’s promotion to CMO in April last year was significant: we see Wipro promoting its brand more in front of business leaders by participating more in industry specific events and less in technology heavy events.

We believe that enhanced focus on top margin verticals, cloud, analytics, mobility, emerging markets, if linked to an appropriate marketing model, will not only help Wipro to better position itself in the Indian IT industry, but also help the company to overcome the challenges in the difficult overseas regions.

Post by Biswajit Banerjee