Kotak maintains ‘Reduce’ rating on Wipro, highlights ‘multiple headwinds’

Wipro has taken an interesting approach towards digital through Wipro Digital, a unit that is branded separately and focuses entirely on business outcomes using strategy, design and technology as the enablers. Acquisition of Designit has been a shot in the arm. We maintain our reduce stance on Wipro noting multiple business headwinds but would keep a close eye on its aggressive and interesting approach to play catch-up in digital.

Wipro Digital is a completely independent unit with separate branding, goals and people policies; effectively running as an independent organisation. This unit is not technology or a set of technologies but focused on delivering change using — design — a big boost was received through acquisition of Designit and velocity — clients do not have clarity on the road map to digital transformation while vendors are struggling to cope with change. Wipro has created frameworks, models and machines to deal with the change.

This unit addresses CxO-level agenda by bringing strategy, design and technology together to deliver business outcomes. Platforms, IPs and digital capability that address only technology and CIO agenda are not part of Wipro Digital; instead these capabilities reside in Wipro’s core business.

Per Wipro, design is one of the most important elements in digital transformation. It essentially creates desirability and emotional connect around product or service offerings.

Kotak Mahindra Group

Wipro Technologies (Wipro Ltd)