BENGALURU: FY24 has been one of the most challenging years in Wipro’s history, according to Rishad A Premji, chairman of the company. In his letter to shareholders, in the company’s annual report, Premji said, “Despite some short-term challenges, the fundamentals of our business remain unchanged…I am confident that our best days lie ahead.”
The company was struggling to win mega deals and the IT major’s profit and revenue figures were dropping. But with new CEO Srinivas Pallia, who took charge in April 2024, analysts say he has had an immediate impact on clients.
“There is still some way to go to shake off some of the baggage of the recent past, but Pallia has had an immediate impact reassuring Wipro’s clients and reenergising his deal teams,” Phil Fersht, HFS Research CEO and chief analyst told this newspaper.
The firm has been bleeding talent, and morale has never been lower. He needs to nail down his plans quickly, give the firm renewed direction, and convince key stakeholders he is the right choice during perhaps the darkest period in Wipro’s history, added Fersht. “He’s off to a good start, but the hard work really starts now,” he said.
The company bagged a $500 million deal from a leading US communication service provider recently. This deal is for over a period of five years. In April, the company announced that it won a multi-million-dollar deal to transform Nokia’s digital workplace services.
Peter Bendor-Samuel, CEO of Everest Group, a research firm, told TNIE that it is encouraging to see improved morale translating into a more aggressive market posture and the start of improved results in the form of market success.
“Most CEOs experience a honeymoon and Srini appears to be in that phase. A slight improvement in the economic macro conditions helps as well. However, Srini needs patience from the investors if he is to engineer a true return to the leaderboard,” he said.
According to him, Wipro has had 20 years of below industry results and this will not be a turnaround without a lot of work and investment. “It’s great that the firm is responding well to Srini but as other Wipro leaders have found this could easily be short-lived. He must take this honeymoon and use it to drive the big fixes in customer relationships,” he added.
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