Wipro telecom R&D services up and running

Buoyed by the return in IT spending, the telecom division of Wipro Technologies is making a gradual shift in its portfolio.

Gone are the days when the division only took up sustenance work following immense downsizing among leading telecom vendors all over the world. Today, the focus is shifting towards product development.

While developing other people's products, Wipro also has a focus on acquiring its own intellectual property (IP). The telecom division has so far filed over 20 patents and the IP software components are being used to provide customers with a time-to-market advantage.

In a new initiative, the division is seeking to enter the electronics space in automotives as well as process-control automation.

Termed as the world's largest third-party R&D outsourcing company by McKinsey, Wipro's telecom division is responsible for making products as well as fixing them. All telecom OEMs (nearly 25) across the world, except Siemens, are clients of the telecom division.

Speaking to Business Standard, Sanjay Gupta, vice-president, telecom & internetworking division, Americas, Wipro Technologies, said, "After a significant downsize, telecom vendors are back on the path to profitability. While downsizing in 2002-03, there was immense offloading of people with large amounts of sustenance-related work coming to us. Today, the emphasis is on revenue growth."

With most cost structures in place after downsizing, Gupta feels that there is a renewed emphasis on product development.

"As a result, there is a shift in our portfolio too. We are similarly moving from sustenance to product development," he added.

The telecom division, employing 4,800 people, constitutes the largest division for Wipro Technologies in terms of revenue. For the year-ended March 31, 2004, the division contributed 17 per cent ($161 million) to Wipro Technologies' topline ($943 million).

Witnessing a surge in development cycles, especially in the last 2-3 quarters, the telecom division is already playing the role of equipping companies with the capability to achieve quality norms.

The quality assurance wing is beginning to play a more prominent role by testing the equipment of OEMs and not just helping in manufacturing them or fixing them.