Wipro is one of the largest IT companies in India. In this SWOT analysis of Wipro, we will talk about the threats to the company along with its drawbacks, opportunities, and strengths.
Let us understand Wipro in detail.
About Wipro
Wipro Limited is a global consulting information technology and business process services organization. The company is globally recognized for its detailed portfolio of services and innovative approach to delivering unique services.
The company is positively engaged in sustainability as well as in powerful enterprise principles. Wipro has more than 1,20,000 employees as well as clients throughout 50 + countries across the globe.
Did You Know?
In 2001, Wipro became the first Indian software technology and services organization that bagged ISO:14001 certification.
Wipro received the certification for complying successfully with the global standards for EMS (Environmental Management System).
Wipro at a Glance
| Present CEO | Srinivas Pallia |
| Year of Establishment | 29 December 1945 |
| Annual Revenue (as of FY24) | ₹89,760 crore |
| Net Profit (as of FY24) | ₹11,112 crore |
| Origin of | Bangalore, India |
| Type of Company | Public |
| Total no. of employees | 1,30,000 |
| Total assets (as of FY24) | ₹ 115,245 crore |
SWOT Analysis of Wipro
The SWOT analysis of Wipro is the in-detailed analysis of the company’s strengths, weaknesses, hazards, and opportunities.
Strengths of Wipro
The strengths of Wipro include a diversified portfolio, various clientele, and more.
Worldwide presence
Wipro has a very global presence and has a presence in more than 50 countries. This broad reach widens the company’s market access while also diversifying its client base. It reduces the dependence of the company on any single market or sector while also improving its resilience against area-wise economic changes.
Sturdy innovation and R&D features
Wipro has been investing hugely in research Innovation and development with its dedicated division in Wipro Labs. The company usually concentrates on bringing ingenious technology as well as consistent improvement within its operations. This assists the company to stay abreast of the competition and provide cutting-edge solutions to the stakeholders.
Extensive portfolio
Wipro offers a number of services including its consulting as well as business process outsourcing services. It also offers cloud services, cyber security solutions, and much more to its clients. This detailed portfolio helps the company to become the one-stop destination and appeal to clients looking for integrated and outstanding service solutions.
CSR Campaigns & Sustainability
Wipro is strongly committed to sustainability as well as CSR campaigns. The company has been also investing in green technology as well as community development campaigns. This initiative enhances the company’s brand image while also appealing to eco-friendly-conscious clients as well as stakeholders. It creates a very positive impact on the company in repetition and business.
Weaknesses of Wipro
Wipro, the multinational IT company, also has some weaknesses to focus on.
High dependency on major markets
Irrespective of the worldwide presence of the company, Wipro has a huge dependency on major markets including Europe, the United States, etc. When economic changes or regulatory fluctuations occur in these regions then they badly impact the company’s growth aspect as well as revenue. This makes Wipro vulnerable to changing marketing conditions.
Employee turnover ratio
Wipro encounters major challenges connected to the relatively higher employee turnover rate. This leads to high recruitment as well as training costs and may also disrupt the project profit margins as well as hamper client relationships. It adversely affects the complete service delivery as well as the operation effectiveness of the company.
Pricing pressures
Since the IT sector is intensely competitive, there are numerous players offering similar services at very competitive prices. Wipro confronts severe pricing issues from its competitors that may diminish the profit margins of the company, making it very difficult to maintain its market share.
Opportunities to Wipro
The opportunities for Wipro include the following –
Expanding presence in developing markets
Wipro can simply maximize the quick economic growth as well as the increasing digitalization in markets like America, Asia Pacific regions, etc. If the company expands its presence as well as services in these regions then it can enter into the new customer base while bringing huge revenue growth.
Strategic collaborations
Insightful partnerships with the latest startups, technology firms, as well as, educational institutions can build innovative capabilities for the company. Such partnerships aid in developing new products while entering into new markets with cutting-edge technology.
Leveraging automation & artificial intelligence
The increasing implementation of automation and artificial intelligence has a broad opportunity for Wipro. Delivering its clients with advanced AI-based solutions, the company can improve productivity while also reducing costs and improving the decision-making capability of the company operations.
Threats to Wipro
Wipro being the leading conglomerate in the IT industry also faces some major threats including –
Severe competition
The IT sector is severely competitive having various local and global players including Accenture, Infosys, TCS, etc. This severe competition creates price wars, margin pressures, as well as the risk of losing a huge amount of market share, which is quintessential for Wipro to differentiate its offerings consistently.
Tech advancements
The fast pace of technical advancements may become a priority for Wipro. If the company faces stay updated with the latest technology as well as innovations like blockchain, machine learning, and the Internet of Things, then the company can lose its relevance as well as competitiveness in the IT market.
Compliance issues
Being a global company Wipro should mitigate its complex regulatory situations throughout the globe. Fluctuations in cyber security rules, data protection laws, as well as trade policies, may become major challenges as well as threats to the company. This will lead to hefty financial liabilities and may also affect the profitability of the organization
Top Competitors of Wipro
Here are the top five competitors of Wipro –
- Accenture: It is a global leader in technology services outsourcing and consulting. Accenture focuses on the latest technologies to elevate its IT service offerings making it a strong competitor of Wipro.
- Cognizant: This is a leading provider of IT services popular for its very strong services in cloud computing, Artificial Intelligence, etc. The company competes directly with Wipro in the IT services market.
- Infosys: Infosys is a major player in the industry and is very popular for its cutting-edge solutions as well as its constant upgrade of digital transformation systems. Infosys has a very diverse portfolio as well as huge R&D investments where it competes with Wipro.
- IBM: IBM offers a broad range of services including IT consultation, Artificial Intelligence, Cloud Computing, etc. Its high technical expertise as well as expanded industry experience makes it a great threat for Wipro.
- TCS: Tata Consultancy Services is one of the biggest IT services companies in the IT industry offering a wide range of services like business solutions software development, IT consulting, etc. The company has a very expensive global reach as well as strong client collaborations that make it a strong competitor to Wipro.
Conclusion
Finally, a SWOT analysis of Wipro Limited showcases that the company holds very strong opportunities as well as strengths for growth in the IT sector.
Moreover, it also confronts specific challenges as well as threats that should be carefully managed to retain its top position in the market. By cleanly understanding the external as well as internal elements, Wipro can surely make strategic decisions as well as inform choices to mitigate the risk regarding the constantly changing business environment.