Wipro shares traded in the green on February 28, a day after the tech giant announced four strategic global business lines to align better with clients’ evolving needs, a move that has been lauded by global brokerage Morgan Stanley.

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Wipro will now deliver capabilities to clients through four GBLs organised around cloud, enterprise technology and business transformation, engineering, and consulting. With the new model, the company aims to cater to evolving business needs and capitalise on emerging opportunities in high-growth segments of the market, it said.

As the changes become effective from April 1, 2023, the firm said the move to have four global business lines reflects the company’s continued shift toward strategic bet areas and its focus on leveraging the power of ‘One Wipro’ “to deliver on clients’ entire spectrum of business and technology transformation goals,” the company said in a statement.

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This is the second restructuring exercise that Wipro has undertaken under the leadership of Managing Director and CEO Thierry Delaporte. The previous one was effective January 1, 2021, when the firm created four strategic market units and two global business lines. It may be noted that the last restrusting exercises had led to a few top level exits from the firm.

Thierry Delaporte said the company is now doubling down on its strategic bets to take growth to its next phase. "Our transformation journey over the past three years has yielded outstanding growth for our business. So much that we have outgrown the two-business line model that we had set at the beginning of our journey," he said.

According to him, the new model will accelerate speed-to-market, streamline decision making, and allow the company to channel investments more effectively and efficiently.

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Morgan Stanley believes that the plan to realign the service offerings indicates sharpening of the company’s focus. It also noted that in the last 2.5 years, Wipro has seen considerable organic and inorganic growth. The brokerage, however, has an underweight stance on Wipro and has set the target price at Rs 375, implying almost four percent downside from February 27 closing.

What will the four business lines do?

–Wipro FullStride Cloud will bring together Wipro’s entire suite of cloud capabilities under a fully integrated, full stack offering. Cloud native applications, cloud architecture, apps modernization, cloud strategy and migration, as well as cloud infrastructure, will all fall under this business line. Jo Debecker, who currently leads Wipro’s Cloud Infrastructure Services, will lead this business, and assume the title of Global Head of Wipro FullStride Cloud.

–Wipro Enterprise Futuring will offer clients solutions for large scale enterprise transformation. This line will comprise intelligent insights and data, application platforms, digital operations, and cybersecurity. Nagendra Bandaru, currently the head of Wipro’s iCORE business, will become the Global Head of Wipro Enterprise Futuring.

–Wipro Engineering Edge, which was launched in 2022 to advance Wipro’s position as a global engineering services leader, will become a standalone business line. Harmeet Chauhan, who currently leads Wipro Engineering, will become the Global Head of Wipro Engineering Edge.

–Wipro Consulting will align Capco, Designit, and Wipro’s Domain and Consulting business under a single banner, driving enhanced best practice and experience sharing between these independent units. Lance Levy, CEO of Capco, and Philippe Dintrans, Global Head of Wipro Domain & Consulting, will continue to lead their businesses in their respective industries.

At 10:03 am on February 28, Wipro shares were trading 0.09 percent higher from the previous close at Rs 390.65 on BSE.

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