Business

Can Thierry Delaporte deliver at Wipro?

The weakest of India’s top four IT services companies desperately needs a turnaround expert. Its new French CEO is the man for the job.

Late last week, Capgemini chief operating officer Thierry Delaporte was named CEO of Wipro Ltd. He has his task cut out.

At the beginning of the 21st century, Wipro was India’s second-largest IT company, right behind Tata Consultancy Services Ltd. That seems like a distant, faded memory now.

Over the years, while rivals like Infosys have grown, Wipro has struggled. Sample this: At the end of the January-March quarter of 2010, Infosys’s revenue totalled $1.29 billion, while Wipro earned $1.16 billion—a difference of just $131 million. In the March quarter this year, that gap grew to over a billion dollars, $3.19 billion for Infosys versus $2.07 billion for Wipro. And this is despite Infosys having its fair share of troubles in recent years.

Compared to TCS, still very much the market leader, Wipro’s performance has been miserable. Over the past five years, Wipro has added $1.17 billion in incremental revenue; TCS added nearly the same amount last year alone.

The big question is whether Delaporte can revive India’s slowest growing IT major. The bigger question is whether Wipro will let him.

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Lead photo credit: iStock.

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