We are focusing on driving true organic growth, but we are also driving an M&A agenda, focusing around strategic acquisitions, says Thierry Delaporte, MD & CEO, Wipro
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When Thierry Delaporte took charge as the chief executive officer and managing director of Wipro Ltd in July 2020, the clear mandate was to bring back agility, speed and growth to the IT major. In just over a year, he seems to have somewhat achieved what was expected of him in the first year. For the second quarter, Wipro surpassed the $10 billion annualized revenue run rate milestone, which is clearly a step in the right direction. Much of it is, of course, still a work in progress. In an interview, Delaporte talks about his accomplishments, growth strategy and the roadmap. Edited excerpts:
What have you accomplished so far and what are your priorities?
Exactly a year ago, we had laid out our strategy in terms of ambition and vision of what we wanted to be—the true transformation partner for our clients. We have defined the markets where we want to go, we have been very clear about our growth strategy and our obsession for growth. Our focus is on our key customers and our intention is to invest in areas like digital, cloud, engineering services, security, as well as talent and diversity. Our ambition is to be a unique company with a deep sense of focus. And we have executed quarter after quarter, day after day on each of these aspects to grow as a company. I must confess that I am pleased with the progress I am seeing every day. The immediate goal is obviously to maintain the growth trend. Our revenue growth guidance for the December quarter is 2-4% and we are targeting growth upwards of 25% for the fiscal year. Our objective is to continue to work with our customers and help them in their transformation strategy. We have to continue to focus on developing our talent and reskilling them. Our focus is also on driving attrition down. These are the aspe-cts on priority for the next few months.
How is the acquisition of Capco shaping up in terms of integration?
It’s still in the early stages. But I am absolutely pleased with what I have seen in terms of the teams working together aligning around key priorities, working with our clients, developing new solutions and new propositions in terms of revenue generation. We have also seen some real synergies in terms of deals. We worked together in about 10 deals, which wouldn’t have been possible if we didn’t have Capco as part of the organization. There’s a lot more to achieve together but I am very pleased to see the way the teams are gearing up and working as one team for the benefit of the clients. It was an important step for us to do this acquisition but we need to make sure that it’s not just an acquisition but there is proper alignment of the different businesses.
What’s your strategy to win billion-dollar deals, given that you have not won a single one of late?
We may not have won $1-billion-plus deals in the last two quarters, which is no surprise. I have been very clear in my communication that we are not ready to generate a billion dollar deal every quarter but that’s definitely the goal. We have a team that is really connected with the business, working with the account executives and starting to shape up opportunities. But such deals typically take time, so it’s not abnormal that we did not generate such deal every quarter.
How is the demand environment in key markets like US and Europe?
In the second quarter, Europe grew highest at 48.3% year-on-year on constant currency basis and is likely to show very strong growth in Q3 as well. Both America and Europe are doing well with strong demand. Asia Pacific is also doing well but it could be better. We have very positive signals coming from our Japanese, Southeast Asian, Australian and New Zealand markets. We also see an improved pipeline in Africa and Middle East.
Wipro has made several acquisitions since you joined. Will it continue or will you focus on organic growth?
We are not done with acquisitions. Mergers and acquisitions are a part of our strategy. We are focusing on driving true organic growth, but we are also driving an M&A agenda, focusing around strategic acquisitions and we will continue to do so.
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