A few days ago, Azim Premji, the executive chairman and MD of Wipro, announced his retirement. He will serve until the end of July. Media reports indicated that Abidali Neemuchwala will be appointed Managing Director of Wipro Ltd from July 31. Azim Premji’s son, Rishad A Premji, who is currently chief strategy officer, will be reappointed Whole-Time Director as well as Executive Chairman of the company. Premji will continue as non-executive director and founder chairman.
So while the digital portfolio paid off, accounting for about 35 percent of the total revenue, Wipro’s legacy business has not improved. An analyst pointed out that profitability was also affected as the company is still shedding unprofitable businesses. However, they are in a much more stable position now, compared to three years ago. Yugal Joshi, Vice President, Everest Group, a consultancy firm, said, “The key challenge for Rishad and Neemuchwala is to bring market-leading growth…They will also have to invest in talent who can orchestrate such large deals for them, understand clients better, enhance their thought leadership and value proposition for the new world.” This means that to keep up with changing trends, Wipro needs to balance next-gen services, which typically come at lower tickets and the traditional business, that usually yields large deals.
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