Quarterly Update
published on Jul 25, 2017
Report Overview:
NelsonHall’s Quarterly Update on Wipro's provides a snapshot of developments at Wipro in the last quarter.
Who is this Report for:
NelsonHall’s Quarterly Update on Wipro provides a snapshot of developments at the company in the last quarter. It accompanies NelsonHall’s more comprehensive Key Vendor Assessment program.
Both programs are designed for:
- Marketing, sales and business managers developing strategies to target service opportunities within the BPO/IT Services markets
- Sourcing managers monitoring the capabilities of existing suppliers of IT and BPO services and identifying vendor suitability for these services
- Consultants advising clients on vendor selection
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the BPO/IT services sector.
Scope of this Report:
The report provides a quarterly update on Wipro, looking at financial performance and key developments during the period.
It accompanies NelsonHall’s Key Vendor Assessment program which looks at Wipro’s IT and BPO offerings, capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphases and new developments
- Revenue breakdowns
- Analysis of the company’s offerings and key service components
- Analysis of the profile of the company’s client base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s strengths, weaknesses and outlook.
Key Findings & Highlights:
Q1 FY18 Performance: Slightly better than expected, though EBIT margin continues to decline y/y.
Q1 FY18 revenues were above what had been very muted guidance because of challenges in Healthcare (HPS) and Communications verticals. Both expected to remain soft in the near term.
Growth was led by BFSI, in particular banking, and ENR.
Q2 FY18 guidance remains muted; expecting improvement by Q4
Progress against six strategic pillars: client mining beginning to deliver results
- Claims “digital ecosystem” revenues represented ~22.5% of overall revenues
- Client mining: first signs of progress
- Hyper automation/non-linearity: has now deployed instances of HOLMES across 175 clients
- Localization: has passed its stated target of having >50% of its U.S. operations “localized”
- Partner eco-system: Wipro Ventures has now made a total of 12 investments, and is using IP from some investee companies
Launch of New Brand Identity
May saw the launch of a new corporate brand identity and a new logo.