Wipro CEO Thierry Delaporte has carried out the Wipro Reorganization costing Wipro over 350 senior leaders, including 75 SVPs and VPs and as many as 300 general managers exit from the firm in the past few months.
Announcement and Timing of Wipro Reorganization:
Wipro hinted reorg in November 2020 to drive sharper client focus by reducing the number of layers in the firm and increasing its overall accountability. The company confirmed to have a new organization structure effective from January 1, 2021.
What exactly changed in the structure:
As part of this restructuring, Wipro created four strategic market units (SMUs) and two global business lines (GBLs) replacing seven strategic business units, service lines and nine geographies.
After narrowing down its top pyramid, Wipro selected the best leaders for the new structure’s roles, which caused unhappy leaders to exit the Wipro. Wipro is aggressively hiring and onboarding several global account executives as well as senior regional leaders.
The company has recently appointed a key leader Douglas Silva, IT veteran and former AWS executive, as Brazil’s country head.
Reason for Wipro Reorg 2021:
The primary reason for this reorg is the changing needs of the clients. Wipro has shifted from a total of 20 to 4 P&Ls which is massive.
According to Wipro CEO Thierry Delaporte, there is an increasing demand for content and domain specialists and technology experts. He shared Wipro’s plan to hire the outside talent and become a key global player in the IT Services and Digital Transformations.
According to Phil Fersht, CEO of HfS Research, the new model will require some time to get fit and to ensure that extra resources are readily available for stable delivery. It is mainly due to the further geographic-based restructuring. He added that he expects a strong year for outsourcing from US and European firms. Also, there is an immediate need to downscale when the pipeline is there to grow the firm.