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TBR

Technology Business Research (TBR)


VENDOR SPOTLIGHT
Wipro Lean in IT

Wipro is driving Enterprise Performance through Lean, partnering with organizations for
transformation programs and embedding Lean thinking into its culture and daily operations
TBR Position and Executive
Summary
Wipro has successfully applied
knowledge gained through its own
internal Lean initiatives to clients via
offerings from Wipro Consulting
Services' Process Excellence Practice.
The
Practice
utilizes
Wipros
intellectual property, lessons learned
from internal Lean projects, Lean
methodology and qualified, trained
and experienced engagement teams.
Wipro has continuously developed its
own Lean framework and has applied
its improvement processes and tools
into a strategic capability. Wipro
Consulting
Services
addresses
customer requirements to adopt Lean
as a strategy to reduce costs, improve
productivity
and
increase
transparency in IT operations.
Customers select Wipro based on its
track record of transforming its
clients IT organizations to be more
efficient and effective.
Wipros strong reputation in applying
Lean principles to organizations is
evident in its ability to win
transformation engagements that
include a Lean component against
consulting
organizations.
TBR
believes being a pioneer in applying
Lean to IT services will lead to a
robust resume in Lean, and, in turn
Wipro will become a more recognized
brand for applying Lean principles to
businesses.

Wipro is leveraging its internal Lean experience, consulting


capabilities and maturity to help businesses develop and implement
their own Lean programs
Current applications of Lean principles trace their roots to the Lean manufacturing
models utilized by Toyota as well as distribution models used by retailers such as WalMart. Just as manufacturing and distribution models have historically been viewed as
integral to an organizations success, IT today is a critical enabler of business
transformation initiatives.
Process improvement initiatives continue to gain importance across the enterprise,
not only to curtail costs but to improve efficiency. Lean applications in IT result in
efficiencies and cost transparencies while maintaining business alignment through
synchronized IT demand at the enterprise level. In addition, Lean principles applied to
IT improve IT performance through the consolidation of processes and resources and
the elimination of redundancies.
Wipro Consulting Services is continually looking at ways to maximize the efficiency
and quality of the services it delivers to customers. With that goal in mind, the
company has made significant investments in fine-tuning the Lean model for the IT
segment. These investments have resulted in significant improvements in Wipros
delivery organization and have provided it with a mature Lean model. Wipro is
leveraging this insight to help clients reap similar benefits.
Lean methods and Lean advisory services play a significant role in Wipros successful
implementation of Process Excellence services. Lean principles are embedded into
every Wipro engagement and allow the firm to help customers generate significant
improvements in efficiency and effectiveness with IT departments. To help customers
transition to a Lean organization, Wipro has developed a 4E methodology, which
takes customers through four key phases from the initial training, adoption and
credibility-building around Lean adoption to a full-scale embracing of Lean-thinking
across the organization, ultimately driving significant strategic benefits from a
combination of customer, operational and financial improvements.
Wipro Consulting Services strong vertical market expertise, mix of on-site and
offshore delivery, internal experience in Lean and qualified engagement teams are
key drivers for customers that select Wipro. TBR believes these strengths will help
Wipro continue to expand and gain share within the Lean IT market.

TBR VENDOR SPOTLIGHT Wipro Business Performance Management Services

What is Lean?
Lean has historically been known as the
manufacturing philosophy developed by
Toyota. The basic precept of Lean
manufacturing is that any activity or use of
resources that does not deliver value for the
customer is wasteful. Through sustainable,
continuous improvement focusing on solving
root problems, Lean techniques reduce waste

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effective leadership that is willing to


continually learn and people who highly value
teamwork and collaboration.
Lean is not Six Sigma. The primary difference
between the two is that Lean is based on
simple principles that can be difficult to imitate
and it has no standard framework, while Six
Sigma is based on a weak solution design and

We are bringing the next generation


of Lean thinking into our processes
and weaving it into our system so
that it will lead to a sustainable
competitive advantage.
Azim Premji, Chairman,
Wipro Limited

and improve work flow. Lean focuses on four


areas:
1.

Processes and systems

2.

Quality management

The Importance of Lean IT

3.

The organization and its people

4.

Change management

Recent studies by vendors, consultancies,


industry researchers and analysts suggest that
a high proportion of IT projects encounter
problems such as failing to meet schedules,
budget overruns, failure to deliver business
value/ROI and insufficient performance against
expectations. For example, TBR believes that

The net result of applying Lean principles is


reduced costs and improved customer
satisfaction. For the Lean principles to be
successful, the organization must have

TECHNOLOGY BUSINESS RESEARCH, INC.

has loosely defined process definitions. Other


significant differences between Lean and Six
Sigma are summarized in Figure 2 on the
following page.

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TBR VENDOR SPOTLIGHT Wipro Business Performance Management Services

Page 3

Figure 2:

Six Sigma vs. Lean


Six Sigma

Example: Large U.S.


Retail Consumer
Company
Before the company implemented Lean
principles it had multiple sources of data
for Service Level Agreement (SLA)
measurement, which led to discrepancies
in SLA reports. In addition, management
was forced to be reactive due to the lack
of a system to provide real-time status.
By applying Lean tenets (Kaizen, Single
Piece Flow, Automation and Visual
Control) Wipro Consulting was able to
help the retail company eliminate all
disputes related to SLA metrics data. In
addition:

Response
and
resolution
compliance for support calls
increased to 97%+ from 70% for
response and 44% for resolution
before Lean

Schedule
adherence
for
enhancement requests increased to
95%+

4,728 person hours are saved per


month on reporting due to
improved throughput, from 4,465
spent on reporting before Lean

Backlog enhancement requests


were reduced to 45 within six
months
of
the
Lean
implementation, from 1,440 before
Lean

TECHNOLOGY BUSINESS RESEARCH, INC.

Lean

Focus

Improve value-added processes

Improve entire value stream


Flow among value-added operations

Problem Span

Largely single process

Entire value stream


Connection among processes

Approach

Data-centric
Top down
Templatized
Sequential problem solving
Defect removal
Variance reduction

People-centric
Bottoms up
Case-based & iterative
Reduce cycle time by waste elimination
Improve value-added activities/ throughput

Orientation

Elitist approach
Black Belt led
Mentoring concept

Grass-roots approach
Ignore traditional functional boundaries
Results are ingrained

Analysis Tool Set

Data driven
Statistical toolset

Focus on waste elimination & Go See Yourself


Uses simple problem solving & contionuous
improvement techniques (TPM, TVA and 5S toolset)

Solution Design

DMAIC (Design, Measure,


Analyze, Improve, Control)

VSM (value stream map), Flow, Pull principles

Output

Quick results
Small team

Iterative
Widespead

SOURCE: WIPRO

while close to one-third of IT projects succeed,


approximately one-quarter fail and almost half
are "challenged." Also, approximately threequarters of technology projects actually cost
more than they return.
Lean principles identify areas where waste can

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be eliminated in enterprise IT, thus reducing


risks to the business. A table of the waste
categories is shown in the figure below.
Correct utilization of Lean IT creates an
improved operating environment by achieving
the following:

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TBR VENDOR SPOTLIGHT Wipro Business Performance Management Services

Example: Large U.S.


Product Company

Prior to implementing Lean principles, the


company had poor Service Level Agreement
(SLA) performance, issues within teams, an
above-average number of incident tickets
that were 200% of the average number of
tickets projected and ~66.3% of a work day
was spent on a ticket on average.
Wipro Consulting applied two Lean tenets of
5S and Value Stream Mapping, which
resulted in increased efficiency in handling
tickets and improved team dynamics.
Specifically, the Lean implementation
resulted in:

The team was able to increase its


ticket volume by 200% without adding
to the team size

Controlled
attrition,
customer
confidence in stability of the project
execution increased

Able to cover 16x5 business hours as


opposed to 8x5 business hours
without any additions to headcount

Average time spent on one ticket


decreased from 5.30 hours to 2.31
hours

Improved IT processes: Well-defined


workflows create more efficient IT
processes.
More efficient IT via consolidation:
Lean
practices
promote
the
elimination of waste, such as
redundant processes, resources and
systems.
Life-cycle
cost
management:
Successful Lean implementations
align all cost components into an
aggregated model, relating life-cycle
costs to what customers receive,
appreciate and perceive to be
important. This representation of
costs also identifies duplicated and
unsynchronized activities and assets.
Optimized workforce planning: Lean
emphasizes the reduction of
unreasonable work imposed on the
IT staff, limiting the need for staff to
fire fight and participate in nonvalue-added activities.

Wipros Lean Capabilities


Wipro Consulting Services' Process Excellence
Practice undertakes engagements with client
organizations
across
industries
to
institutionalize Lean as a way of life by
embedding it into organizations cultures.
Members of Wipros team of 575 Process
Excellence consultants are certified and trained
in Lean, have rigorous industry knowledge, and
have more than 10 years of experience on
average. Project teams are comprised of a mix
of on-site and offshore resources, including;
Lean masters; operational experts; leads;
analysts; and experts in change management,
knowledge management and training.
Wipro Consulting offers a comprehensive set of
Lean services to guide clients from beginning to
end:
1.
2.

TECHNOLOGY BUSINESS RESEARCH, INC.

Assess
as-is
process
and
organizational Lean readiness
Identify value-add and non-valueadd activities through design of a
customer value map

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Page 4

3.

Optimize flow for eliminating nonvalue-adds


through
activity
sequencing
4. Consolidate processing to avoid
multiple transitions
5. Build a Lean organization by
reducing the number of layers and
increasing simplicity
6. Set up a Lean management/
productivity office
7. Redesign jobs by leveraging Lean for
smoother operations
8. Conduct mentoring and training for
Lean
In addition, Wipro's intellectual property
includes proven tools and techniques,
knowledge management frameworks, and
customized training programs. Notably, Wipro
Consulting has experience in Lean across more
than 1,500 projects in a span of five years, and
has simulation capabilities that ensure
engagements deliver the proposed benefits.

Wipros Lean Journey


Wipro began its Lean journey in 2004 when it
began investigating how the principles of Lean
and Six Sigma manufacturing methods could be
leveraged to deliver similar benefits to the
software development and management
process. 54 Lean projects were completed in
2004-2005 and that number has escalated to
over 1,500 completed projects and 300+
ongoing projects today. While not all projects
have been a resounding success, it is important
to note that learning from mistakes and
failures is a key tenet of Lean thinking. Wipro
customers now reap the benefits of the years
of experience and maturity Wipro has
developed through its internal implementation
of Lean IT.
Internal Wipro projects leveraging Lean have
delivered benefits such as:

10% to 15% improvement in


productivity

15% to 20% reduction in delivered


defect rate

20% higher capability to handle


requirements volatility

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TBR VENDOR SPOTLIGHT Wipro Business Performance Management Services

Example: Fortune 500


U.S. Insurance and
Financial Services Firm

Wipros Lean Overview

Wipros objective was to reduce unnecessary


and improper helpdesk escalations from T1 to
T2 for the firm with U.S. $148 billion in
statutory assets.
Before Wipro applied Lean principles, the firm
had inconsistent call escalation methods,
would process redundancies, had bloated
work queues, access restrictions, limited
usage of self-help tools, unstated internal
goals and undefined severity-level handling
processes.
Through the implementation of Lean
principles, Wipro was able to standardize call
escalation modes and eliminate non-valueadded processes. In addition, volume and
inputs into work queues were reduced, T1
access was enhanced and internal goals were
standardized. More specifically:

Mailboxes in use were reduced from 29


to 23

Non-remedy touches by T1 to T2
dropped to 150 from 713

SAS administration password resets


decreased to 320 from 375

Password reset calls handled by T1


dropped from 11,079 to 4,500

Tickets opened by T1 for T2 increased


to 682 from 516

The value Wipro delivered to the firm was in


the form of minimized process variance
among agents and administrators, alignment
between business need and criticality
constraints and real-time issue resolution.

TECHNOLOGY BUSINESS RESEARCH, INC.

Higher performance consistency

As an innovator in IT service delivery models,


Wipro Consulting Services continually looks for
new models and frameworks that can add
value and differentiate the services it offers to
clients and the way in which it delivers
services. In supporting these objectives, Wipro
has spent the last several years applying,
developing and deploying the principles of
Lean manufacturing to the software
development and management process and IT
management. The investments in developing a
Lean methodology for software services are in
addition to the work Wipro has done in
developing a Six Sigma methodology for
software development as well as its CMM
accomplishments. Wipro has spent the last six
years creating a robust and mature internal
Lean program and is now sharing that
experience to help customers derive similar
improvements in quality and costs.

Wipros Lean IT consulting practice is part of


the companys Process Excellence Group under
Wipro Consulting Services. The Process
Excellence Group helps organizations build
significant operational efficiencies in business
and IT, aiming to achieve cost reductions in the
range of 10% to 30% through restructuring,
process optimization, delivery efficiency and

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Page 5

vendor and contract optimization. Wipro


Consulting Services also includes Business
Transformation,
Functional
Excellence,
Governance, Risk & Compliance and Enterprise
Architecture Consulting practices.
While Lean principles are similar to Six Sigma,
Wipro found there are several key benefits
delivered by Lean that give it unique
advantages over Six Sigma. Unlike Lean, Six
Sigma cannot be mapped to the entire process
while Lean addresses the entire value stream.
While Six Sigma takes a top-down (i.e. train the
top 25% of the workforce), data-driven
approach focused intently on reducing
variances and defects, Lean leverages a peoplefocused, bottom-up (train everyone) approach
focused more on maximizing potential (flow
and pull),reducing cycle time by removing
waste and increasing value-added activities
and improving productivity.
In recent years, a Lean Thinking approach has
gained popularity as it helps develop better

concepts of the business, focuses on life cycle


costs, eliminates waste and builds a culture of
continuous
improvement
within
the
organization. Wipro typically sees clients
looking for Lean methodologies that have
under-utilized IT services, multiple vendors and
vendor models, incorrect incident prioritization
and assignment, increased infrastructure costs,

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TBR VENDOR SPOTLIGHT Wipro Business Performance Management Services

Example: U.S.-based
Banking and Financial
Services Company
A large Banking and Financial Services company
had a Corporate Process Improvement team
working on deploying Business Process
Management while it was chartered with
deploying Lean processes across the IT
enterprise to improve effectiveness and
efficiency. The Corporate Process Improvement
team was not experiencing much success in
either deployment, as it was hindered by the
lack of proper tools, standardization with IT and
mismatched optimization programs across its
divisional IT organization, central IT team and
corporate program.
Wipro stepped in and conducted a Lean
organizational assessment and developed an
enterprise IT process model with 13 end-to-end
processes, all of which were taken up for
deployment. Five stages were established to
deploy the process improvement efforts:
1.

Assess existing

2.

Conduct Kaizen

3.

Stabilize

4.

Optimize

5.

Excel

To date, 65% of the 13 processes have been


deployed and 25% are in the Optimization
stage. Wipro also redefined the IT project life
cycle methodology to industry best practices.
The result of the engagement with Wipro was
better aligned process management across the
enterprise and continuous improvement
processes across the organization in place. The
company now has its strategic objectives
aligned with Lean initiatives and projects and is
able to quantify the effectiveness of these
initiatives through the engagement and
effectiveness dashboard, which led to increased
effectiveness in the first year and efficiency
improvements subsequently.

TECHNOLOGY BUSINESS RESEARCH, INC.

Page 6

non-adherence to committed SLAs, and a high


number of delays or defects in end delivery.

Wipro Consulting Services 4E


Lean Implementation Model

Areas of Lean Application within


IT Organizations

Wipro has seen two different philosophies in


the market regarding how to implement Lean
across an organization. The first philosophy is
the Big Bang approach, which is seeing some
success in the Asia Pacific region and works
best in organizations with strong hierarchical
cultures. The other approach is the pilot-driven
model, which leverages a series of successful
pilots to drive credibility of the Lean model and
eventually leads to Lean institutionalization.
Based on its own experience and its work with
clients, Wipro recommends the pilot-based
approach to Lean implementation. Wipro
Consulting Services 4E Methodology includes
four phases for adoption:

The Process Excellence Practice assesses a


range of criteria in selecting areas of
implementation for Lean techniques, including
areas with a higher degree of backlog, which
are chaotic and bottleneck the value chain,
contributing to delays, and areas that have
standard operating procedures and are critical
to the value chain. Successful areas of Wipros
application of Lean techniques in IT
organizations have taken place across three
primary business lines within IT firms,
including:
1. Application Development: Wipro has
demonstrated the ability to deliver consistent
quality, productivity improvement and an
adherence to plans whereby Lean operations
have been beneficial in solving business
challenges around scalability and impact. TBR
believes complexity issues are an additional
constraint alleviated by the Lean techniques
employed by Wipro, due to efforts generated
in Lean production that standardize and
simplify operations.
2.
Application Maintenance: TBR believes
the challenges pertaining to scalability and
impacts are evident across application
maintenance, where improvements in cycle
time and productivity, as well as application reengineering and backlog reduction, present the
greatest need for Lean techniques. Wipros
vertical expertise in application maintenance
outsourcing is augmented via Lean techniques
applied for process improvements.
3. Production Support: Production support
is an area of operation Wipro targets for
developing improvements in SLA adherence,
backlog reduction, ticket in-flow reduction and
demand-based optimal capacity planning. TBR
believes Lean techniques employed in this
capacity are aimed primarily at combating
scalability in operations and ensuring optimal
capacity planning is appropriate for the
demand environment.

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Horizon 1 Experiment

Horizon 2 Engage

Horizon 3 Effectiveness

Horizon 4 Edge
The additional steps and milestones of each
phase can be found in Figure 4. As one of the
biggest questions customers have in regard to
Lean implementation is where to start, TBR
believes the 4E model provides a strong
blueprint for helping customers prioritize their
investments in Lean IT and gain acceptance
across the organization, which is critical given
the grass-roots philosophy embedded in
Lean thinking.

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TBR VENDOR SPOTLIGHT Wipro Business Performance Management Services

Page 7

Example:
U.S.
based
U.S.-based
Banking and
Financial Services
Manufacturing
Company
Company
A large manufacturing company already had a
corporatewide Six Sigma/Lean initiative in place
A large Banking and Financial Services company
before engaging Wipro. The IT organization,
in the U.S. had a Corporate Process
however, was under-utilizing Six Sigma/Lean
Improvement team working on deploying
tools on IT projects, as it was not 100%
Business
Process
Management
while
confident in the applicability and proper usage
simultaneously; it was chartered with deploying
of these tools. As a result, the company was
Lean processes across the IT enterprise to
not able to successfully align its Lean initiatives
improve effectiveness and efficiency. The
and projects with its strategic initiatives and
Corporate Process Improvement team was not
objectives and was experiencing pain areas in
experiencing much success in both deployments
its IT project lifecycle.

as it was hindered by the lack of proper tools,


standardization
Wipro
Consultingwith
was ITchosen
and tomismatched
help the
optimization
company
better
programs
utilizeacross
Lean its
methodologies.
divisional IT
organization,
Wipro
conducted
centralanIT assessment
team and corporate
of Lean
implementation in IT and took the following
program.

actions:

Wipro stepped in and conducted a Lean


organizational

Defined
assessment
and facilitated
and developed
pilots for
an
enterprise processes
IT process model
pertaining
with 13toend-to-end
annual
processes,planning,
all of which
projectwere
selection,
taken project
up for
deployment.
monitoring
Five stages
and review
were established in
order to deploy the process improvement efforts:

1.

2.
3.
4.

5.

Defined an engagement and


effectiveness
Assess
existingdashboard for Lean IT

Demonstrated
Conduct
Kaizen pilot application of
Lean tenets in requirements
Stabilize
engineering and testing process
areas
Optimize
Redefined the IT project lifecycle
Excel
methodology

To date, 65% of the 13 processes have been


deployed
The outcome
and 25%
of at
thein the
engagement
Optimization
included
stage.
Wipro
improved
also alignment
re-defined oftheLean
IT project
initiatives
lifecycle
and
methodology
projects with
to industry
the best
companys
practices. strategic

objectives, clearly defined Lean roles and


The result of the engagement with Wipro was
responsibilities and a redefined IT project
better aligned process management across the
lifecycle methodology in line with industry best
enterprise and continuous improvement
practices. The manufacturing company can
processes across the organization in place. The
now quantify the effectiveness of Lean
company now has its strategic objectives aligned
initiatives in its IT organization through the
with Lean initiatives and projects and is able to
engagement and effectiveness dashboard.

quantify the effectiveness of these initiatives


through the engagement and effectiveness
dashboard, which led to increased effectiveness
in the first year and efficiency improvements
subsequently
TECHNOLOGY BUSINESS RESEARCH, INC.

Critical Benefits of Lean


TBR believes there are a number of key areas
in which customers will benefit from
implementing Lean IT solutions. While not all
benefits will be available at the initial stage of
implementation (Horizon 1), benefits will
accumulate as customers advance their Lean
maturity. Potential benefits include:
1. Employee Benefits: Employee Lean
capabilities expand from the core Lean team to
embrace full employee engagement, with
staffers contributing to continuous small
changes, being incented to drive new
development ideas and seeing improved
responsibility and job satisfaction.
2. Operational Benefits: Operational benefits
include improvements in throughput, cycle
time, and quality. Wipro helped a leading
insurance company improve its bug-fix
efficiency by 11% to 29%, while an airline client
benefited from a 30% improvement in cut

phase productivity. A global telecom company


was able to achieve substantial benefits with a
reduction in fault slip-through from 16% to 4%
with no significant impact on other key
performance indicators.
3. Customer Benefits: Customer benefits
include faster response times, increased
flexibility and higher customer satisfaction.
4. Financial Benefits: Financial benefits include
increased resource return on investment,
improved leverage of organizational assets and
reduced rework costs.
5. Lean Capabilities: Internal Lean capabilities
also improve with time, including the
development of an in-house training capability,
training materials and building year-to-year
gains across strategic, customer and
operational benefits.

IN SUMMARY
TBR believes Lean Thinking will continue to grow in the post-recession economy as enterprise
clients continue to invest in ways to form more efficient business operations, including reducing
costs and improving productivity. We believe Lean IT principles are especially attractive to
organizations that have recently undergone M&A activity, particularly in the Banking & Financial
Services sector. Since 2009, clients in the Banking & Financial Services sector have engaged in
downsizing and right-sizing initiatives with the objective of cutting costs. Lean is applicable in the
financial services sector as a performance improvement strategy rather than merely a cost-cutting

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TBR VENDOR SPOTLIGHT Wipro Business Performance Management Services

Page 8

exercise. Implementing Lean provides a systematic approach to reducing waste, enables process
flow optimization, and helps clients develop a better concept of customers through a culture of
continuous improvements. In addition to the Banking & Financial Services sector, TBR believes the
public sector, including healthcare, and the manufacturing sector will increasingly seek Lean IT as
both tend to be transaction heavy and involve complex IT processes which are often decades old.
Wipros Consulting Services' Process Excellence Practice brings to market a unique combination of
highly experienced consultants, deep vertical market expertise and solutions, internal experiences
and proprietary frameworks and methodologies to deliver Lean to customers IT organizations in
the form of improved operational efficiency and effectiveness. Wipros Lean IT is poised to be a
transformation catalyst for enterprises looking to institutionalize Lean Thinking across the
organization and improve IT efficiency by applying its intellectual property tools and training
material such as Value Thread framework, Lean tool mapping for development, maintenance and
production support engagements, Lean readiness, and pilot selection kit. Wipro leverages its
internal Lean project experiences to apply best practices to resolve clients pain points with a
solution that is not overly complicated, yet delivers a high return on investment.
Cultural change is a critical component to Lean IT that allows for the transformation of IT into a
learning organization. Since many IT organizations struggle with negative workforce perceptions
about IT and business management requiring improved value for IT investments, Lean IT addresses
unused licenses, underutilized applications and dissatisfied employees. Wipro ensures that
continuous change management is created to train reluctant users and identify and overcome
barriers to adoption.
Wipro makes customer alignment a priority in its overall business strategy, investing in vertical
market solutions and expertise. Close working relationships become more like partnerships, as it
understands industry-specific solutions and industry dynamics.
Wipros offshore delivery capability further differentiates the provider, supporting Lean
engagements with seamless offshore delivery that helps reduce costs. TBR believes it is the
combination of these assets that make Wipro a qualified partner in Lean engagement and enable
the company to expand its footprint and market share within this dynamic market segment.

ABOUT TECHNOLOGY BUSINESS RESEARCH


Technology Business Research, Inc. (TBR), headquartered in Hampton, N.H., is recognized as one of
the leading high-tech market research and consulting firms specializing in analyses of computer,
networking, software and professional services companies in the information technology market.
Servicing an international clientele of high-technology manufacturers, service providers, IT
professionals and end users, the company has continually distinguished itself in the marketplace by
providing timely, accurate, high-quality information and market research in a format that is
uniquely responsive and tailored to clients needs.

TECHNOLOGY BUSINESS RESEARCH, INC.

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