Wipro Sys Plans Rs 120cr Expansion

Wipro Systems, part of the Rs 783-crore Wipro Infotech group, has drawn up a blueprint to invest Rs 120 crore in the next three years which includes launching of new software development centres, expanding existing ones at Bangalore and Hyderabad, and entering into vertical business areas.

As part of this plan, Wipro intends to open a separate division in the US to develop products for niche areas like healthcare, telecommunication and Internet commerce under one umbrella. The company recently started a healthcare software division in Bangalore.

This is part of our long-term business strategy to move up the service chain, said V Chandrasekaran, president of Wipro Systems. To make inroads into the US healthcare software products market, Wipro has identified specific areas like clinical records, homecare system, hospital billings and rural healthcare for developing software products.

 

We'll be studying these areas to develop software packages, he said.

Wipro, which has already launched works for its healthcare business area, however, refused to share details on progress made so far. In tune with the latest US healthcare expectations, Wipro's major focus on developing new packaged products will be to considerably pare down healthcare costs by effectively managing the administration part of it.

Only well-designed software products can achieve that, he said.

According to Wipro, the big-budget US healthcare business has thrown open many opportunities for software companies.

Wipro is also looking at the system integration opportunities for its exports business. But, unlike in the past, Wipro in future plans to develop software for the domestic market as well. Wipro Systems, a wholly owned subsidiary of Wipro Corporation, provides software development services in applications and systems software.

The company, which recorded a turnover of Rs 170 crore during 1995-96, is expecting to touch an export revenue of Rs 250 crore in the current financial year. Its upcoming establishment in the Electronic City of Bangalore will be capable of accommodating about 2,000 people. The 1.5 lakh sq ft Hyderabad establishment can house 1,500 engineers. Wipro plans to increase its manpower from the present 1800 to 4000 by 1999.