Post Q3 results Wipro and Infosys restructuring operations

Infosys and Wipro looking at new leadership to increase business and compete in the market. Both companies are hoping that strategic changes in operations will help them in the long term.

With not so good Q3 numbers, Wipro chief Azim Premji has decided to make some drastic managerial changes to Wipro Technologies. The changes start right from the top, Wipro Technologies no more has the joint-CEO leadership. T K Kurien is now in charge of Wipro Technologies.

Wipro is now restructuring itself to become in-their-words leaner and faster. The management at Wipro has divided the company into six strategic business units. These business units are defined by the industries they operate in:

  1. Energy, utilities and Finance solutions
  2. Media and Telcommunication
  3. Healthcare and Life Sciences
  4. Technology
  5. Eco-energy
  6. Domestic IT

These six divisions will independently be responsible for the business they bring in and the profits. With this structure, Wipro hopes to being in more accountability and streamline their operations. At the recently held NASSCOM summit, Wipro is said to have interacted with clients addressing their concerns and putting a strong foot forward.

Wipro seems to be on the right path and expects these changes to show results after at least 3 quarters. Talking about the changes, T K Kurien said, "This is a longer-term play for us because what we believe is that we are, by doing this, positioning ourselves for future growth. "I don't see the impact of this for at least three quarters."

Infosys will be undergoing some management changes as well this year. Based on reports current COO S D Shibulal will be promoted as CEO by April. Infosys is also expected to align its activities based on geographies. The organization is expected to be broadly divided into three groups:

  1. Outsourcing deals
  2. Consulting and Intellectual Property
  3. Innovation

The company will start looking at clients based on geographies rather than verticals. The clichéd improvements of becoming agile and faster are being cited for the changes.