Wipro (WIPR.BO :: Takeaways from Citi India Investor Conference – Day 2

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Wipro (WIPR.BO; Rs438.75; 1L)
 Takeaways from Mumbai – Wipro presented at our India Investor Conference in
Mumbai. Below are key takeaways.
 Restructuring in focus – The focus of the recent restructuring has been to give
a single access point to the client (the client engagement manager) and to align
the goals of the organization to the client’s. Previously there used to be multiple
teams that used to be the touch points for the clients. Now these have been
aligned to the vertical which serves as the single touch point. The vertical has the
P&L responsibility now, while the horizontals are measured in terms of different
goals.
 How are the customers taking it? – The customers are happy: (1) they
appreciate the fact that Wipro is fully aligned to their goals; and (2) have a single
touch point. In general there is a lot of positivity among the customers regarding
the recent restructuring.
 Demand trends – The demand scenario continues to remain positive with the
cost arbitrage continuing to play its role, as far as cost take-outs are concerned.
Discretionary spends are looking up with different business models (like Cloud
etc) seeing decent traction. New drivers include analytics, mobile enablement
and "cloud"- based offering/advisory.
 Pricing stable – The pricing environment is stable with COLA (cost of living
adjustments) happening. Wipro is also seeing some hikes in a reasonable
proportion of T&M (time and material) clients.
 Vertical trends – In terms of outlook for the various verticals, the pecking order
for Wipro stands as: Financial Services; Energy & Utilities; Retail/CPG,
Manufacturing/Healthcare and Telecom.