Wipro climbs up value chain with process consulting

The process consulting arm of Wipro Technologies, the global software services arm of Wipro Ltd., is emerging as one of the fastest growing businesses of the conglomerate, according to Sambuddha Deb, Chief Quality Officer, Wipro Technologies.

The process consulting division grossed nearly $20 million during the last nine months of the current fiscal, compared to $10 million during the entire 2003-04 and around $4 million the year before.

"The process consulting division was started a few years back as a value add to existing customers. We concentrate around improving the processes surrounding implementation and practices of IT in organisations, with Six Sigma as our base. Once we started, we realised the business potential in the area and since then our revenues have grown by 100 per cent year on year," said Deb.

Deb adds that more than 70 per cent of the present revenues come from existing Wipro clients but that process consulting has also been used as an entry key to new deals.

With a profit margin that is nearly '10 per cent more than' application development and maintenance, process consulting brings in almost 50 per cent of Wipro's consulting revenues. Offshore comprises around 25 per cent of the work done and 10 per cent of the billing.

"The strongest markets for process consulting so far has been US, followed by Europe. We usually compete against global players like Accenture and its not often that we find an offshore company like us on the pitch. While companies like Accenture work strategy downwards, we work implementation upwards," said Deb. He adds that there is nearly a 40 per cent difference in price between the global players and Wipro.

Deb does not expect the 100 per cent growth in revenues to continue indefinitely but asserts that the division will grow at a faster pace than the company.

The eventual aim of the division may be to move up to strategy consulting but that it will demand "a different rhythm which we will have to decide on whether we can absorb."

Wipro's consulting arm earns less than 3 per cent of its revenues at the moment but remains one of the higher value services provided by the company.

With continued rapid growth in process consulting division revenue (it now employs 150 people), Deb sees its share of overall revenue rising over the next few years.