BENGALURU: Soon after Wipro announced its results for the third quarter on Wednesday, CEO Thierry Delaporte spoke to TOI on how his strategy is shaping up.
Your sequential growth in Q3 at 3% pales before Infosys’s 7%…
I don’t compare myself with competitors. We have grown 3%, very much in line with our guidance, which was 2-4%. In the last four quarters, we have grown 28% (year-on-year). We are the fastest growing firm in the industry. Even organically, we have a high double-digit growth, and we will never look at M&A to compensate for the lack of organic growth.
The demand environment is robust, but IT companies have a major attrition issue. How are you addressing this?
We see some moderation and stabilisation emerging in the next few quarters. We are a lot more organised now to deal with this level of attrition. We have hired more employees than ever.
We have added 50,000 net new additions over the last five quarters, which is unique in the history of the organisation. We have multiple touchpoints with employees, and communicate more on culture and values. The more we increase emotional connect, we increase the chances of their being willing to stay and invest in their careers with Wipro.
You said at the press conference that your win rates have gone up by 300 basis points. Can you explain that?
Win rate is the difference between the size of the pipeline and the volume of business that you convert into a win. If the pipeline is filled with opportunities that are far from being closed, if they are clients you don’t know well, if they are in areas where you have limited expertise, then you know that you can’t win.
We don’t want our teams to spend time on winning an impossible deal. The quality of the pipeline is pretty good now. The higher the win rate is, the lower the cost of winning a deal is.
You said you’ve had a great turnaround story in Europe…
Between 2010-2020, and not counting the time of the pandemic, there was zero growth in Europe. We have totally changed the model, we have put an organisation in place, chosen markets that are a priority in Europe, we have appointed CEOs in each of the markets, hired senior leaders. It’s paying off. In Germany, we have doubled in size in four quarters. The growth in south Europe, UK, Switzerland, the Nordic countries is good as well.
Pricing for in-demand skills has risen by 4%-7%. How are clients absorbing price increases, and how are companies like yours managing the talent pyramid?
Most clients are less focused on price and are more focused on speed of delivery and quality. We have been able to raise our prices in many instances over the last 2-3 quarters and I expect this trend to continue.
Last fiscal, your operating margins were in the 19%-20% range. Is has dropped to 17%-18%?
There is the 2% that comes from the cost of acquisitions. We have stayed within the normal bands. We are also constantly improving our model and driving efficiency and reinvesting in our talent and processes. We have onboarded more than 70 new VPs (vice presidents) over the last 12 months. We are making a $1 billion investment into the cloud, we are investing in cyber security.
Clients want to accelerate their digital transformation. How are you leveraging tech and skills to improve speed and execution?
We are not waiting for them to come with a plan. We are being proactive. We are spending time to explain how tech can help improve growth, productivity, and profitability. Our clients across industries are aware of it. We are committing to the outcome. Our job is to mitigate and take the risk away from them.