Wipro recently acquired the IT arm of SAIC and has already started tapping the outsourcing spend of BP and GE, a move that may be attributed to the growing need to increase the contribution of its top 10 customers to its total revenue. Wipro currently earns 20% of its revenue from its 10 biggest clients, significantly lower than Infosys' 30% and TCS' 25%.
The company is making considerable progress towards its goals. Since the turn of the year, Wipro has managed to increase the number of clients who contribute over USD 100 million from one to three and the number of clients that contribute over USD 50 million a year have increased from 16 to 22.
The SAIC acquisition has put Wipro in a position to sell a greater number of services to the oil major, BP, especially in sectors like exploration. "We will also be getting a share of their spends in areas like exploration etc," Anand Padmanabhan, Senior Vice-President, Energy, Natural Resources and Utilities SBU, Wipro Technologies said.
Another major client of Wipro is General Electric, that spends about USD 1 billion on outsourcing.
View: This effort is very important on the part of the company. There is two other side where the company must improve it self.
According to industry experts, Wipro as a company suffers from highest attrition rate in the industry, this needs to be addressed. Even though the company has give promotion to middle rung managers in order to retain talent but that will not only help. It needs to create a better work environment.
The other aspect where Wipro will need to work is clearly draw its succession plan. An uncertain succession plan of a company can send jitters to investors.