Wipro
This is probably applicable to all Indian software companies - However, I am going to write about Wipro. Wipro, as a company has been constantly moving up the value chain - Starting with testing and other mundane activities moving up to becoming a true IT consultant.
The challenge is to become a true business partner with major companies and gain their trust to the extent that they are willing to let you plan their business strategy. Once you get into business strategy planning, there is no looking back, as you become their "go-to" company for all kinds of services.
Wipro has probably built up its service capabilities to the extent that they can take on all the work that would result from such a partnership - However, the missing link is the "project feeding unit" - The consulting business.
Wipro generates a lot of cash - 435 Million dollars in 2004. And cash is all powerful in business.
I read on an article on rediff.com that Wipro has been planning to purchase a bug ticket consulting firm for quite some time - Since 2000 and in 2002, they came close to a $650-700 million acquisition in the US, but it never fructified.
Vivek Paul defended his decision, declaring that the differences in corporate culture might have been too difficult ....
So, whats the solution ? If Wipro doesnt move to the next level and acquire a blue-chip consulting firm, it is going to reach a ceiling in terms of its capabilities. And Deloitte & Touche is up for sale :-) And Premji's elder son works at Baine Consulting in the US.
Interesting .....
The challenge is to become a true business partner with major companies and gain their trust to the extent that they are willing to let you plan their business strategy. Once you get into business strategy planning, there is no looking back, as you become their "go-to" company for all kinds of services.
Wipro has probably built up its service capabilities to the extent that they can take on all the work that would result from such a partnership - However, the missing link is the "project feeding unit" - The consulting business.
Wipro generates a lot of cash - 435 Million dollars in 2004. And cash is all powerful in business.
I read on an article on rediff.com that Wipro has been planning to purchase a bug ticket consulting firm for quite some time - Since 2000 and in 2002, they came close to a $650-700 million acquisition in the US, but it never fructified.
Vivek Paul defended his decision, declaring that the differences in corporate culture might have been too difficult ....
So, whats the solution ? If Wipro doesnt move to the next level and acquire a blue-chip consulting firm, it is going to reach a ceiling in terms of its capabilities. And Deloitte & Touche is up for sale :-) And Premji's elder son works at Baine Consulting in the US.
Interesting .....
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