Bengaluru: Wipro is planning to double the contribution of consulting-led services to its overall revenue over the next four to five years, two people familiar with the strategy told ET.
“The mandate from the top management is to increase consultingled revenue from 10% to 20% of the total turnover in the next four to five years,” one of the people said.
“Each business unit and service line has been given their own targets to achieve the goal and the leaders have been asked to generate more demand for such consultingfocused deals,” the person, who did not want to be identified, said.
The dedicated revenue targets come as India’s fourth largest software services exporter sees opportunity in delivering digital technology-led services, which require iterative engagement with clients.
The $8.5-billion IT services provider as well as peers have seen revenue from traditional software services decline or remain flat as customers increasingly demand Cloud and analytics solutions to business problems. Wipro has faced business headwinds due to both client-specific issues and global uncertainties.
The Bengaluru-based company has also lagged the Indian technology services industry in terms of growth.
Consulting-led business growth, the second person said, is at the centre of Wipro’s transformation strategy, along with digital technology-led business goals.
Wipro did not respond to specific questions sent by ET for this story.
In the quarter to September, Wipro’s digital revenue grew 29% to reach 39.6% of its total revenue.
“We continue to focus on client mining and drive digital and business transformation in accounts that bring together design, domain and consulting capabilities and help us engage in strategic conversations proactively with clients and various business stakeholders within our accounts,” Abidali Neemuchwala, chief executive officer, Wipro, said in an earnings call with analysts following its second quarter results.
Neemuchwala cited an example of how Wipro had been awarded a multi-year application development and support contract by a North American bank, saying “that is the entry of a new service line cross-selling into this account aimed at getting products to market faster and improving customer experience”.
Analysts said doubling consulting-led services contribution to revenue may, however, prove to be an uphill task.
Source: Economic Times