Wipro revamps telecom biz to focus on services

Summary:Indian IT giant changes strategy from product engineering to services to buffer against slowdown in spending from Europe--home to some of its biggest customers, reports say.

Indian IT giant Wipro Technologies is restructuring its billion-dollar telecom business, shifting from telecom products to services even as the global telecom equipment market sees a slowdown in demand.

The Economic Times reported Tuesday Wipro has traditionally focused on product engineering for telecom equipment vendors, but it now plans to focus on servicing customers such as telecom operators. This means offering services on mobile broadband, telecom analytics, customer experience management, system integration, network optimization, and making hardware interoperable across platforms, it added.

"Earlier, 100 percent of our revenues came from selling boxes. But a shift is now happening from products to services. Services now constitute about 25 percent of our business," Jayanta Dey, global head of consulting, solution and practice unit, telecom equipment vendor vertical at Wipro Technologies, told the news agency.

He added that for some clients, about 40 to 50 percent of its business come from services. This is because customers are not increasing their budgets and want to make sure the research and development (R&D) dollars they had invested continues to give them returns, Dey explained.

Citing figures from Gartner, the Economic Times said the global telecom equipment market is seeing a slowdown, growing at 6.9 percent this year compared to 7.2 percent in 2011. Another analyst firm Frost & Sullivan said several vendors are either losing money or quitting the business, it added.

A separate report by Forbes on Tuesday said Wipro's strategy shift was a move to buffer itself against the crisis in Europe, which is home to some of its biggest network customers including Ericsson, Nokia Siemens Networks (NSN), and Siemens.

Topics: Tech Industry, India, Mobility, Networking

About

Jamie Yap covers the compelling and sometimes convoluted cross-section of IT and homo sapiens, which really refers to technology careers, startups, Internet, social media, mobile tech, and privacy stickles. She has interviewed suit-wearing C-level executives from major corporations as well as jeans-wearing entrepreneurs of startups. Prior... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.