Business Dissertation

Wipro Ltd. —The New Face of Global Competition

CLOSING CASE Fifteen years back, Wipro Limited. of India was a cluttered conglomerate advertising everything from cook-ing oil and personal care products to knockoffs of Dell microcomputers and lightbulhs. Now it is a fast-growing i . t company at the forefront of In-dia's quickly expanding technology sector. Back in ending Mar 2005, Wipro generated more than $1. 87 billion in sales, most from foreign trade contracts in in-formation technology services. It is sales have grown by much more than 25 percent a year since 1997, which growth reveals no sign of delaying. The company is extremely prof-itable, generating $363 mil in net gain in the year ending March june 2006. Wipro's transfer to technology started out in 1989 when General Electric entered into a partnership with Wipro, Wipro GENERAL ELECTRIC Medical Devices, to make and sell GE ultrasound scanners under license in India. At that time, Wipro's technology revenues were tiny, simply $ you 5 , 000, 000. While product sales of GENERAL ELECTRIC scanners in India would not take off as quickly as expected, GE quickly realized it had found a cheap source of talented technical engineers and developers. India includes a solid foundation of technology-focused universities and colleges that turn out many engineers annually. The vast majority speak English. When software programmers in the United States with two to four many years of experience make $64, 000 a year, similarly skilled persons in India can be had for is little since $2 an hour or so, and programmers at Wipro on av-erage earn $12, 000 12 months. That might not really sound like a lot, but in India, where the gross annual per capita income is still less than $250, it can lead to a very good living. GE quickly set aside $5 million a year to hire Wipro software developers to write code for GE's ultrasound devices and its CT scanners. By the mid-1990s, sen-ior GE managers began to motivate other units to fol-low the medical division's business lead and outsource information technology function to Of india...

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