An internal rejig could bode well for Wipro

This time, Wipro insiders will be promoted. That’s the advantage of having an insider at the top. These new nominations do not come from outside. They should continue with this as it will not create any cultural challenges, Pareekh Jain, Founder, Pareekh Consulting, tells Bizz Buzz

Bengaluru: Wipro’s decision to promote professionals to top management positions under the leadership of a new CEO is likely to benefit the company in terms of improved employee morale and productivity. According to experts, this strategy differs from that used by Wipro’s previous CEO, Thierry Delaporte, who brought in several external leaders to accelerate growth. Last month, Wipro appointed Srinivas Pallia as its new CEO, who had been with the company for three decades and headed ‘Americas 1’ before taking over as CEO. Following the appointment, the IT company made it clear that it was relying more on internal candidates than on outsiders.

After Pallia took charge of the top office, Wipro appointed Malay Joshi, a long-time employee with over three decades of experience at the company, as CEO of Americas 1. The Bengaluru-based company has appointed Hari Shetty, another Wipro veteran, as chief strategy officer and Sales Excellence Specialist before.

“Wipro insiders will be promoted this time. That’s the advantage of having an insider at the top. These new nominations do not come from outside. It’s good that the company promotes itself internally. They should continue this as it will not cause any cultural challenges. So this leadership change is positive as internal candidates are promoted,” Pareekh Jain, IT outsourcing consultant and founder of Pareekh Consulting, told Bizz Buzz.

Referring to the recent resignations of some top leaders, he said such departures should be expected at the time of leadership change.

“Many of the leaders who have recently left were appointed under the previous CEO, and several were externally hired. With any leadership change, people will leave,” Jain added.

After the new CEO took over, two former Capgemini executives and Delaporte employees left the company – COO Amit Choudhary and Anis Chenchah, CEO of APMEA. Wipro has appointed Vinay Firake, who is another veteran, as the CEO of APMEA.

“Top hard-working people are moving out of Wipro. This will support the operating margin profile,” an industry source said.

Wipro is trying to accelerate revenue growth after the company underperformed under the previous CEO. According to analysts, in addition to boosting employee morale, the company needs to improve its execution capabilities, pursue more large transactions, and improve its technological capabilities to regain industry leadership in key industries.

Under its new CEO, the company is now promoting internal candidates to improve employee productivity.

“The new CEO may not undertake any drastic organizational reforms and will likely focus on business stabilization and growth. This will likely work to the company’s advantage,” another source said.