Wipro Aims to Transform into a Consulting-Led, AI-Powered Powerhouse, Reveals Rishad Premji | The Economic Times

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Wipro’s Strategic Shift Towards AI-Powered Consulting

Rishad Premji Shares Vision at Annual General Meeting

Wipro, one of India’s leading IT firms, is poised to enhance its focus on becoming a consulting-led and artificial intelligence (AI)-powered organization. This vision was articulated by Rishad Premji, the company’s executive chairman, during a recent videoconference with shareholders at its 79th annual general meeting held in Bengaluru.

A Year of Significant Change

Addressing stakeholders, Premji emphasized that the year 2024-25 represents a pivotal time for both Wipro and the global landscape. He pointed out the ongoing uncertainty in the external environment yet insisted that resilient businesses are cultivated during challenging periods.

Embracing AI Amidst Uncertainty

“The macro landscape is continually evolving, and technologies like AI are experiencing rapid growth,” said Premji. “We’re sharpening our focus on becoming a consulting-led, AI-powered organization,” signaling a robust strategic shift in Wipro’s operational model.

The Impact of Acquisition

During the meeting, Premji highlighted the strategic acquisition of Capco in 2021, which has significantly bolstered Wipro’s capabilities in financial services consulting. This move has facilitated expansion into various other industries, reaffirming the company’s commitment to diversifying its service offerings.

Upcoming Financial Announcements

The remarks from Premji come just ahead of Wipro’s first-quarter earnings announcement scheduled for Thursday. Investors are keenly awaiting this report as it will provide insights into the company’s financial trajectory amidst a challenging macroeconomic environment.

Market Performance Insights

On the day of the meeting, Wipro’s shares experienced a modest increase of 2%, closing at Rs 262.70 per share on the BSE. This rise reflects investor confidence in the company’s strategic direction and future growth potential.

Industry Landscape and Competitive Analysis

In recent developments, larger rivals such as Tata Consultancy Services (TCS) and HCLTech have reported subdued quarterly revenue and profit figures, largely due to uncertainties surrounding U.S. tariffs. This trend indicates a cautionary approach being adopted by clients of software service providers.

Financial Overview

Wipro, now the fourth largest software services provider in India, reported a revenue of $10.5 billion for the fiscal year 2024-25. Premji expressed optimism about future returns, stating, “Starting from FY26, we expect to return at least 70% of the net income to shareholders cumulatively over a three-year period.”

Leadership Perspectives

Chief Executive Officer Srinivas Pallia, who marked his one-year anniversary at the helm in April, discussed the increasing uncertainties in the fourth quarter of 2024-25. He noted new headwinds and emphasized Wipro’s role in assisting clients to define strategic roadmaps and identify AI opportunities that align with their business objectives.

Investing in Talent Development

Pallia elaborated on Wipro’s significant investments in talent and leadership development through its Wipro Leadership Institute. The initiative aims to cultivate high-potential talent, move top performers into critical roles, and promote growth in an AI-centric environment.

Building AI Capabilities

In a strategic move to enhance its AI capabilities, Wipro has successfully built over 200 agents in partnership with hyperscalers. This development has enabled the company to leverage Agentic AI, which is making a tangible impact across various internal operations, including human resources, finance, and legal functions.

Looking Ahead

With a clear vision set for the future, Wipro aims to fortify its position in the IT landscape through a consulting-led, AI-powered strategy. This transition is not just about technology; it represents a holistic approach to adapting to the evolving market dynamics.

Conclusion

Wipro’s strategic pivot to emphasize consulting and AI capabilities aims at not only navigating current uncertainties but also seizing future opportunities. As the company prepares for upcoming financial disclosures, stakeholders and industry watchers will be keenly observing how these changes manifest in tangible results.

Questions and Answers

  • What is Wipro’s new focus as mentioned by Rishad Premji?
    Wipro aims to become a consulting-led, AI-powered organization.
  • What significant acquisition did Wipro make in 2021?
    Wipro acquired Capco, enhancing its capabilities in financial services consulting.
  • What financial performance did Wipro report for FY 2024-25?
    Wipro reported revenue of $10.5 billion for the fiscal year 2024-25.
  • What percentage of net income does Wipro plan to return to shareholders from FY26?
    Wipro expects to return at least 70% of net income cumulatively over a three-year period starting from FY26.
  • How is Wipro enhancing its AI capabilities?
    Wipro has built over 200 agents in partnership with hyperscalers, leveraging Agentic AI to improve internal operations.

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Leah Sirama
Leah Siramahttps://ainewsera.com/
Leah Sirama, a lifelong enthusiast of Artificial Intelligence, has been exploring technology and the digital world since childhood. Known for his creative thinking, he's dedicated to improving AI experiences for everyone, earning respect in the field. His passion, curiosity, and creativity continue to drive progress in AI.