Company Analysis

Raution Jaiswal
Atkinson Graduate School of Management
February 12, 2009
 Recommendation

Buy
Price: $9.95
Current Price: 6.84
ROI= 45.47
•Total Revenue at $4.9 billion for 2007-08
•Total Employees ~100,000
•Total IT business ~ $4.3 billion
•85% of IT business is Services and 15% is Products
$5-Billion Diversified Global
IT Service company
Portfolio of services includes:
 IT consulting
 custom application design
 Development
 Re-engineering and maintenance
 Systems integration
 Package implementation
 Technology infrastructure outsourcing
 BPO services
 Research and development services in the areas of hardware
and software design
Offshore Still Small Part of Overall Spend
Growth in the company
5 year CAGR of Revenue 36% and Net Income of 34%
Revenue by Sector
Working their Magic
 Great brand associated with innovation.
 Quickly entering Emerging markets.
 Strong balance sheet.
 It is one of the largest beneficiaries of the
R&D services outsourced to India.
 It has a wide range of products in its
portfolio.
 It has a long history of acquisitions and
integration.
Shortcomings

 Higher attrition

 Dependence on matured markets

 Adverse currency fluctuations

Plan of Attack/Strategy

 Differentiated Service lines

 Acquisitions
 Leadership in Emerging Markets
 Total Outsourcing Services
 MEGA Partnership - Cisco, EMC, Microsoft,
Oracle and SAP
 Innovation
Risks to Consider

 High exposure to the telecom/tech sectors

(36%)
 Slowdown in US economy
 Significant appreciation of rupee
 Slowdown in the banking, financial services and
insurance (BFSI) sector
 H1B visa quotas
 Acquisition-related risks
 Opportunities

Strategic alliances

New global development centers

Growing consumer care market

 Wipro: “Good BUY or Good BYE”

Quality standards

Strong financial performance

Diversified operations

Broad range of Research and development

services
Thank You