A Dissertation REPORT ON OrganizatiOnal analysis Of WiPrO ltd.

For
PARTIAL FULFILLMENT FOR THE AWARD OF THE DIPLOMA OF

POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM)

SUBMITTED TO

SUBMITTED BY

Dr. Ruby Dwivedi

DEAN, UIMS

Mr. Chandan Chowdhury

Enrollment No. UIMS-PGDM-10-014 Batch: 2010-2012

UDAI INSTITUTE OF MANAGEMENT STUDIES JAIPUR

PREFACE
As a part of my syllabus of PGDM programme in Final year, I was assigned some Practical and theoretical project work. Study of management will be immaterial if it is not coupled with study of financial aspect of the business. It gives the student an opportunity to learn the connection between comparison & execution to test & verify application of theories & help in the comparison of management theories and practice. The study gives a chance to know about the profitability and financial position of the firm. In the Scenario Analysis of the company we have included the companys industrial GDP, its Market Share, Market Capitalization, Market Growth, HR policy etc. some other reason of choosing this segment are; Highly versatile & innovation oriented sector Large number of employees are working Highly challenging job opportunities High growth opportunities Work on international project Platform to show the difference dimension of talent

ACKNOWLEDGEMENT

2|P a g e

With a sense of gratitude and respect, I would like to extend my heartiest thanks to all of those who provided help and guidance to make this project a big success. No Project is ever the outcome of single individuals talent or effort. This work is no exception. This project would not have been possible without the whole hearted encouragement, support and co-operation of our guide, friends and well-wishers. Although it is not possible for us to name and thank them all individually, I must make special mention of some of the personalities and acknowledge our sincere indebtness to them. The successful completion of this project rests on the shoulder of many persons who have helped us directly or indirectly. I wish to take this opportunity to express to all those, without whose help, completion of this project would have been difficult. I am indebted and thankful to all the individuals who have guided, advised, inspired and supported me in making this project a success. My gratitude to my honorable guide Prof. (Dr.) Neeran Gautam for giving us the opportunity for developing the project and his able guidance, inestimable motivation and constant encouragement throughout our project. Without his help this project would never have been realized in its entirety. I would also like to express my gratitude to my immediate project supervisor Prof. Rajesh Sharma for her immense help in this project.

3|P a g e

CONTENT
SL. NO.
1 2 3 4

TOPICS
Objective Of The Project Industry Overview Porters Five Forces Model SWOT Analysis Of Indian IT Industry Core Statements History About The Company Business Level Strategies Organization Change Management SWOT Analysis Of Wipro Board Of Directors Review Of Literature Operation Level At Wipro Human Resource Planning Performance Appraisal Corporate Social Responsibility Financial Report(Benchmarking) Scenario Analysis Self Competency Mapping Alternative Career Path Challenges Of Wipro Conclusion Bibliography

PAGE NO.
5 6 9 10 11 12 14 16 18 20 21 22 24 28 34 38 40 45 47 48 53 54 55

5
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

OBJECTIVE OF THE PROJECT

To collect the diversified knowledge about the IT industry In India To identify the operational strategy of Wipro
4|P a g e

 To have knowledge about the structural formation & policies of Wipro To find out the competitive advantage of Wipro To draw a picture of its past performance & future aspects To unveil the future opportunity to get into this company To analyze the compatibility level in terms of competency and requirement

SCOPE OF THE PROJECT Identification of corner stones of the organization Identification of performance trend over a period of time Possibility to analyze the external & internal environment Future extension of the study

LIMITATION This study is based on secondary data Analysis of very current scenario is not possible The time is a constraints for the study Budget is also a hindrance for data collection This project is done as far the best of my knowledge

INDUSTRY OVERVIEW
The Indian Information Technology industry accounts for a 5.19% of the country's GDP and export earnings as of 2009, while providing employment to a significant
5|P a g e

number of its tertiary sector workforce. More than 2.5 million people are employed in the sector either directly or indirectly, making it one of the biggest job creators in India and a mainstay of the national economy. In 2010-11, annual revenues from ITBPO sector is estimated to have grown over US$76 billion compared to China with $35.76 billion and Philippines with $8.85 billion. India's outsourcing industry is expected to increase to US$225 billion by 2020. The most prominent IT hub is Bangalore. The other emerging destinations are Chennai, Hyderabad, Coimbatore, Kolkata, Kochi, Pune, Mumbai, Ahmedabad , NCR . Technically proficient immigrants from India sought jobs in the western world from the 1950s onwards as India's education system produced more engineers than its industry could absorb. India's growing stature in the Information Age enabled it to form close ties with both the United States of America and the European Union. However, the recent global financial crises has deeply impacted the Indian IT companies as well as global companies. As a result hiring has dropped sharply, and employees are looking at different sectors like the financial service, telecommunications, and manufacturing industries, which have been growing phenomenally over the last few years. India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group in partnership with Burroughs. The first software export zone SEEPZ was set up here way back in 1973, the old avatar of the modern day IT park. More than 80 percent of the country's software exports happened out of SEEPZ, Mumbai in 80s. The origin of IT industry in India can betraced to 1974, when the mainframe manufacturer, Burroughs, asked its India sales agent, Tata Consultancy Services (TCS), to export programmers for installing system software for a U.S. client. The IT industry originated under unfavorable conditions. Local markets were absent and government policy toward private enterprise was hostile. The industry was begun by Bombay- based conglomerates which entered the business by supplying programmers to global IT firms located overseas.

6|P a g e

During that time Indian economy was state-controlled and the state remained hostile to the software industry through the 1970s. Import tariffs were high (135% on hardware and 100% on software) and software was not considered an "industry", so that exporters were ineligible for bank finance. Government policy towards IT sector changed when Rajiv Gandhi became Prime Minister in 1984. His New Computer Policy (NCP-1984) consisted of a package of reduced.

Figure: Break up of Total Global IT Spending

In an increasingly globalised world, significant complexity and uncertainty is getting attached to the unprecedented economic crisis. The Indian economy has also been impacted by the recessionary trends, with a slowdown in GDP growth to seven per cent. The focus and exponential growth in the domestic market has partially offset this fall and insulated the country, resulting in net overall momentum. The IT-BPO industry in India has today become a growth engine for the economy, contributing substantially to increases in the GDP, urban employment and exports, to achieve the vision of a young and resilient India. During the year, the sector maintained its double digit growth rate and was a net hirer. This growth has been fueled by increasing diversification in the geographic base and industry verticals, and adaptation in the service offerings portfolio. While the effects of the economic crisis are expected to linger in the near term future, the Indian IT-BPO industry has displayed resilience and tenacity in countering the
7|P a g e

unpredictable conditions and reiterating the viability of Indias fundamental value proposition. Consequently, India has retained its leadership position in the global sourcing market. During this period, direct employment is expected to reach nearly 2.23 million, an addition of 226,000 employees, while indirect job creation is estimated to touch 8 million. As a proportion of national GDP, the sector revenues have grown from 1.2 per cent in FY1998 to an estimated 5.8 per cent in FY2009. Software and services exports (including BPO) are expected to account for over 99 per cent of total exports, employing over 1.76 million employees. While the current mood is that of cautious optimism, the industry is expected to witness sustainable growth over a two-year horizon, going past its USD 60 billion export target in FY2011. While the industry has significant headroom for growth, competition is increasing, with a number of countries creating enabling business environments aimed at replicating Indias success in the IT-BPO industry. There are a few competitors who actually dominates the Indian IT market. Some of them ARE WIPRO, INFOSYS, IBM, TCS, CTS, SATYAM etc. They actually create the entry boundary in Indian IT industry. Their Revenue break up is given below;

PORTERS FIVE FORCES MODEL (Indian IT

Industry)
8|P a g e

THREAT OF SUBSTITUTES 1. Other offshore locations such as Eastern Europe, the Philippines and China, are emerging and are posing threat to Indian IT industry because of their cost-advantage. However, this should have an impact only in the medium to long term. 2. Price quoted for projects is a major differentiator, the quality of products being same.

BARGAINING POWER OF SUPPLIER 1. Due to slowdown, the job-cuts, the layoffs and bleak IT outlook. 2. Demand and supply of IT professionals is no longer that favorable to employees. 3. Availability of vast talent pool freshers and experienced.

Medium

BARGAINING POWER OF CUSTOMERS 1. Large number of IT companies vying for IT projects resulting in high competition for projects. 2. Huge decline in IT expenditure: Indian IT sector is dependent on USA and BFSI in particular for majority of its revenues, and with the recent financial crisis, the new spending from these has reduced tremendously. 3. However, for the existing products and services, the clients continue the old companies.

RIVALRY AMONG FIRM 1. Commoditized offerings 2.'low-cost,littledifferentiation positioning. 3. high industry

High to low Very High

Low

BARRIERS TO ENTRY 1. Low capital requirements. 2. Large value chain, space for small enterprises. 3. MNCs are ramping up capacity and employee strength.

SWOT ANALYSIS OF INDIAN IT INDUSTRY

9|P a g e

Cost advantage Breadth of service offering Ease of scalability Quality and maturity of process Global and 24/7 delivery capability

Excessive dependence on USA for revenues Excessive dependence on BFSI sector for revenues Decreasing competitive advantage High rates of attrition

STRENGTH

WEAKNESS

OPPORTUNITY

THREAT

Greater scope for product innovation Domestic demand for IT services is to grow at 20 % Greater scope to service domains other than BFSI such as Transportation, Infrastructure, etc.

Global economic slowdown may continue for several years Increased competition from foreign firms like Accenture, IBM etc. Increased competition from low-wage countries like China, Indonesia etc.

CORE STATEMENTS
CORPORATE MISSION:
10 | P a g e

Wipros vision is to Live the Spirit of Wipro in our engagement with all stakeholders. THE VISION: The vision of the different business units of Wipro are as under: Wipro Technologies To be among the top 10 Information Technology Services companies in the world, delivering innovative & best in the class IT, business process & design solutions to customers, in an environment that provides our employees a professionally enriching & rewarding career Wipro InfoTech To lead with Business Transformation proposition to become the Number 1 IT services provider in India by March 2011. To rank amongst the Top 3 IT services provider across Middle East by March 2011 Wipro Consumer Care To be amongst the top 10 FMCG companies by revenues & profits in India, by March 2009. To be the fastest growing FMCG Business in Asia Wipro Infrastructure Engineering To achieve global leadership in the Hydraulic Cylinder business, with a market share of 15%, by 2013. To build the business for Ecological Sustainability so as to be amongst the top 3 global players, in the chosen segments, by 2013

HISTORY

11 | P a g e

The Birth of the name Wipro - As the organization grew and diversified into operations of Hydraulic Cylinders and Infotech, the name of the organization did not adequately reflect its operations. Azim Premji himself in 1979 selected the name "Wipro" largely an acronym of Western India Products. Thus was born the Brand Wipro. The name Wipro was unique and gave the feel of an 'International" company. So much so that some dealers even sent their cheques favouring Wipro (India) Limited. Fortunately, the banks accepted them!!By the early 90s, Wipro had grown into various products and services. The Wipro product basket had soaps called Wipro Shikakai, Baby products under Wipro Baby Soft, Hydraulic Cylinders branded Wipro, PCs under the brand name Wipro, a joint venture company with GE named Wipro GE and software services branded Wipro. The Wipro logo was a 'W", but it was not consistently used in the products. It was clearly felt that the organization was not leveraging its brand name across the various businesses. The main issue remained whether a diverse organization such as Wipro could be branded under a uniform look and feel and could there be consistent communication about Wipro as an organization. Wipro started as a vegetable oil company in 1947 from an old mill founded by Azim Premji's father. When his father died in 1966, Azim, a graduate in Electrical Engineering from Stanford University, took on the leadership of the company at the age 21. He repositioned it and transformed Wipro (Western India Vegetable Products Ltd) into a consumer goods company that produced hydrogenated cooking oils/fat company, laundry soap, wax and tin containers and later set up Wipro Fluid Power to manufacture hydraulic and pneumatic cylinders in 1975. At that time, it was valued at $2 million. In 1977, when IBM was asked to leave India, Wipro entered the information technology sector. In 1979, Wipro began developing its own computers and in 1981, started selling the finished product. This was the first in a string of products that would make Wipro one of India's first computer makers. The company licensed technology from Sentinel
12 | P a g e

Computers in the United States and began building India's first mini-computers. Wipro hired managers who were computer savvy, and strong on business experience. In 1980 Wipro moved in software development and started developing customized software packages for their hardware customers. This expanded their IT business and subsequently invented the first Indian 8086 chip. Since 1992, Wipro began to grow its roots off shore in United States and by 2000 Wipro Ltd ADRs were listed on the New York Stock Exchange. With over 25 years in the Information Technology business, Wipro Technologies is the largest outsourced R & D Services provider and one of the pioneers in the remote delivery of IT services. Being a global provider of consulting, IT Services, outsourced R&D, infrastructure outsourcing and business process services, we deliver technology-driven business solutions that meet the strategic objectives.

ABOUT THE COMPANY

13 | P a g e

Wipro Limited is a global information technology (IT) services company headquartered in Bangalore, India. According to the 2011 revenue, Wipro is the third largest IT services company in India and employs more than 122,385 people worldwide as of March 2011. Wipro is ranked 31 globally in 2011 in the list of IT service providers. It is 9th most valuable brand in India according to an annual survey conducted by Brand Finance and The Economic Times in 2010. It provides outsourced research and development, infrastructure outsourcing, business process outsourcing (BPO) and business consulting services. The company operates in three segments: IT Services, IT Products, Consumer Care and Lighting. Wipro Technologies is a global services provider delivering technology-driven business solutions. Wipro is the No.1 provider of integrated business, technology and process solutions on a global delivery platform. Azim Premji is the Chair man of Wipro Technologies. He took over the mantle of leadership of Wipro at the age of 21 in 1966. Under his leadership, the fledgling US$ 2 million hydrogenated cooking fat company has grown to a US$1.76 billion IT Services organization serving customers across the globe. Wipro is presently ranked among the top 100 Technology companies in the world. It has 66,000+ employees, serves 592 clients, and has 46 development center across the globe.

DIMENSION OF BUSINESS WIPRO DEALS WITH: IT services: It includes different applications like ERP, CRM, SCM, E business etc.
14 | P a g e

Product engineering solution: It includes extended engineering, R&D, and new product design for competitive advantage. Technology Infrastructure services: It also contributes to the infrastructure industry. In India, it has 650 customers, and in Europe they have about 200 customers. Business process outsourcing: They contribute BPO services in the field of HR, Finance, Banking, and Electronics Group Companies of Wipro: Wipro infrastructure engineering: It deals with hydraulic cylinder system in India Wipro InfoTech: leading Company in computer hardware & services Wipro technology: Market leader in IT services & R&D technology Wipro consumers: Deals with FMCG/FMCD goods Apart from those there are some close Strategic Business Units(SBU) are present: cMango Pte Ltd. Wipro Japan KK Wipro Shanghai Ltd. Wipro Trademarks Holding Ltd. Wipro Travel Services Ltd. Wipro Cyprus Private Ltd. Wipro Consumer Care Ltd. Wipro Health Care Ltd. Wipro Chandrika Ltd.(a) Wipro Holdings (Mauritius) Ltd. Wipro Australia pvt Ltd. WMNETSERV Ltd.(a) Quantech Global Service Ltd. 3D Network Pvt Ltd. Planet PSG Pvt Ltd. Spectramind Inc.

15 | P a g e

BUSINESS LEVEL STRATEGIES

MARKETING STRATEGIES: Wipro focuses largely on pull marketing initiatives, marketing with four key components. targeting prospective clients while they are searching for relevant IT information. Mostly this mean web based

Search engine promotion

Thought leadership content on leading IT portals and directories

Web seminars and events

Website content

GROWTH DURING THE RECENT YEARS (2008-2010)

Segment IT Services IT Products Consumer care & Lighting

Revenue Rs.Crores 5165 1011 574

Growth YoY 2% 22% 18%

PBIT Rs.Crores 1218 61 75

Growth YoY 17% 51% 20%

1. Planning to aggressively develop the R&D services by focussing on high growth markets Dedicated sales team for Europe and Asia
16 | P a g e

2. Focused on New Client Acquisition in Europe & Asia 3. Wipros own website is the fulcrum of the entire lead-generation program 4. Consciously focused on increasing the revenue contribution from higher-end service lines 5. Special offers and more than 400 case studies to get visitors to demonstrate and register their special interests 6. Comprehensive Web monitoring 7. Wipro uses permission marketing to strengthen relationships and move prospects along the sales cycle 8. Marketing team relies on the prospect database to create carefully targeted lists based on incoming traffic, client profiles, and ongoing web activity

The strategic business units of Wipro are, Wipro infrastructure,(Question mark) Wipro InfoTech, (star) Wipro Technologies (cash cow) Wipro consumer durables (Dog)

ORGANIZATION CHANGE MANAGEMENT

17 | P a g e

Wipro provides real solutions to business challenges like mergers and acquisitions. Wipro works with the clients in following ways : Team with leadership to create a business vision that facilitates a guided coalition of leadership to support the business change imperatives. Collaborate with management to rationalize current state staffing and model future state requirements. Perform a comprehensive organizational assessment and create an optimal design to realize the business vision. Conduct a workforce assessment to define the complimentary resources that facilitate realization of the business vision. Design action plans to develop or on-board requisite skills for the organization's future state needs. WIPROs STRATEGY TO GO GLOBAL PAST STRATEGIES: Growth has four faces: Organic, acquisition, diversification and joint venture. Growth Strategy over the past years has shown a marked change from earlier pattern.Between1966-2009, it grew through diversification, partnerships and organically, through Innovations. RECENT STRATEGIES: IT services and product segment accounted for 69% of the companys revenue during the Fical year ended March 31,2009.WIPRO provided its clients with customized IT solutions In the area of IT services, technology infrastructure and R & D Services. WIPRO Provides services to banking segment, manufacturing segment, energy industry Etc. WIPROS STRATEGY REVOLVES MAINLY AROUND THREE POINTS Service line Expansion Building a full port-folio of technology services.
18 | P a g e

 Quality leadership Quality standards such as six-sigma, effort to become global six-sigma leader. Investing in human capital WT is investing a lot in training, not only on the technology side but also on teaching its engineer how to become consultants. This helps them to take on large and complex projects and drive them out of India. WIPROs STRATEGY FOR FUTURE GROWTH: Wipro expects to significantly grow its global IT services business and the percentage of its total revenues and profits contributed by this business over the next few years. It hopes to achieve this objective by identifying and developing service offerings in emerging growth areas as separate business opportunities, such as infrastructure support services, business intelligence services and telecommunication, internet and application service providers.

SWOT ANALYSIS OF WIPRO

19 | P a g e

BOARD OF DIRECTORS:
20 | P a g e

Mr. AZIM H . PREMJI, CHAIRMAN

Dr Ashok S Ganguly, Former Chief Ex.Officer Nortel B .C. Prabhakar, Practitioner of Law Dr. Jagdish N. Sheth ,Professor Of Marketing-Emory Uni.Usa. N.Vagual,Chairman-ICICI Bank Ltd Bill Owens, Former Chief Ex.Officer,Nortel P. M. Sinba, Former Chairman Pepsico India Holdings

21 | P a g e

REVIEW OF LITERATURE

Dr. Kapil Pandla et.al (2009) Discuss about quality & trust of Wipro Wipro Technologies is a global services provider delivering technology-driven business solutions that meet the strategic objectives of clients. Wipro Technologies to implement the Six Sigma Quality tool to achieve sustained strategic business results. It explores the implementation procedure at Wipro Technologies and the benefits reaped by the company on account of adopting Six Sigma. SRINIVAS RAO.K(2010) mentioned Different strategies of overseas marketing of services Wipro focuses largely on pull marketing initiatives, targeting prospective clients while they are searching for relevant IT information. Wipro can take the strategic advantage of growing market demand of retails which is booming in Indian Market by having strategic alliance with different Retail Companies. Prof. Nikunj Patel(2008) elaborates the Financial aspect of Wipro Wipro Limited (Wipro), together with its subsidiaries and associates (collectively, the company or the group) is a leading India based provider of IT Services and Products, including Business Process Outsourcing (BPO) Services, globally. Wipro is a $3.5 billion Global company in Information Technology Services, R&D Services, Business process outsourcing. Team Wipro is 75,000 Strong from 40 nationalities and growing. Gartner & Kenneth(2010) describes the strategic alliances and future challenge of Wipro worldwide. Basically it is focused on corporate operational strategy to get
22 | P a g e

competitive advantage. It also talked about aggressive movement of Chine. The emerging concept of next offshore IT market. Alexander Peters (2008) Journey to Lean Leans dual focus on increasing business value and eliminating waste made it one of the most popular business performance improvement approaches of the last decade. Wipro, a global company headquartered in Bangalore, provides IT services to 840 active customers in multiple verticals including banking, retail, manufacturing, healthcare, energy, utilities, and transportation. At Wipro, compliance with quality assurance standards has been critical for its reputation and success.
Suparn Sharma & Joity Sharma(2010) Corporate Social Responsibility in Wipro

Business organizations have waked up to the need for being committed towards Corporate Social Responsibility. But still majority have just been taking up some form of philanthropic activities for its stakeholders. Nurturing a strong corporate culture which emphasizes Corporate Social Responsibility (CSR) values and competencies is required to achieve the synergistic benefits. Greening & Turban (2007) found that job applicant and employee perceptions of Wipros CSR determines their attractiveness towards the organizations. Demonstrates that employee attitudes and behaviors are heavily influenced by fairness of organizational actions towards them. Redington (2005) with the help of twelve case studies, while underlining the HR professionals key role in managing the changes required for CSR activities to succeed, stated that employees are the most neglected though most important stakeholder of the organization for conducting CSR activities at Wipro.

OPERATION LEVEL AT WIPRO

23 | P a g e

Wipro Technologies is a global services provider delivering technology-driven business solutions that meet the strategic objectives of clients. Wipro has 40+ Centers of Excellence that create solutions around specific needs of industries. Wipro delivers unmatched business value to customers through a combination of process excellence, quality frameworks and service delivery innovation. Wipro is the World's first CMMi Level 5 certified software services company and the first outside USA to receive the IEEE Software Process Award. Six Sigma provides the tools for continuous improvement on existing processes thereby helping sustain the SEI-CMM Level 5 and CMMi certifications. This case focuses on the initiatives taken by Wipro Technologies to implement the Six Sigma Quality tool to achieve sustained strategic business results. It explores the implementation procedure at Wipro Technologies and the benefits reaped by the company on account of adopting Six Sigma. The case also throws light on the recent developments in the Six Sigma concept including Wipros Six Sigma Skill base and consulting experience and explains how the company intends to build its expertise and experience to bring continuous process improvement to the organization. Capability Maturity Model (CMM)

Evolution of Six Sigma at Wipro:

24 | P a g e

Wipro is the first Indian company to adopt Six Sigma. Today, Wipro has one of the most mature Six Sigma programs in the industry ensuring that 91% of the projects are completed on schedule, mush above the industry average of 55%. As the pioneers of Six Sigma in India, Wipro has already put around ten years into process improvement through Six Sigma. Along the way, it has scaled Six Sigma ladder, while helping to roll out over 1000 projects. The Six Sigma program spreads right across verticals and impacts multiple areas such as project management, market development and resource utilization. Six Sigma at Wipro simply means a measure of quality that strives for near perfection. It is an umbrella initiative covering all business units and divisions so that it could transform itself in a world class organization. At Wipro, it means: (i) Have products and services meet global benchmarks (ii) Ensure robust processes within the organization (iii) Consistently meet and exceed customer expectations (iv) Make Quality a culture within.

Leans Full Implementation At Wipro Supports Business Expansion:

25 | P a g e

Wipro, a global company headquartered in Bangalore, provides IT services to 84 active customers in multiple verticals including banking, retail, manufacturing, healthcare, energy, utilities, and transportation. In 2009, the IT services business crossed the 100,000-employee mark, tripling the number of employees from 2005.5 At that time, Wipro Chairman Azim Premji announced that the company was implementing Lean and expected to derive competitive advantage from it.6 History shows that Wipro was able to fulfill its chairmans expectation. Since 2004, the company has continuously developed its own Lean framework and has applied its continuous improvement process and tools into a strategic capability with goals to:

Improvement of productivity by Lean six sigma

Dynamically reposition its portfolio of services for growth and innovation.

26 | P a g e

Five years ago Wipro competed as an outsourced provider of technical services, completing about 1,100 software projects yearly about 75% of them offshore and 25% at customers locations. Sustain its market position as low-cost, high-quality service supplier. At Wipro, compliance with quality assurance standards has been critical for its reputation and success. To defend its position against other Indian and international service companies competing on low wages, Wipro has constantly renovated its delivery processes and trained its staff based on the most advanced quality initiatives and control models of the time, such as ISO 9000, CMMI, and Six Sigma.

1800 1600 1400 1200 1000 800 600 400 200 0 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Source: Forrester Research, Inc.

27 | P a g e

HUMAN RESOURCE PLANNING (HRP)

Model of HRP System: Manpower Planning Recruitment & Selection Training & Development Performance Appraisal Promotion, Transfer, & Demotion Welfare Activities

Area of Recruitment:
Consultant - CRM / SCM/ ERP / JDE - Enterprise Security - Testing Services - Legal / Law - Wireless Services / Switching Systems - Independent Verification & Validation - Enterprise Application
28 | P a g e

Integration (EAI) - Banking / Finance / Securities / Insurance - TISP Solutions OSS / BSS Human Resource / Recruitment / Training - Finance/ Accounts / Auditing - Marketing /Sales / Business Development - Microsoft, Mainframe & Internet Technologies - Functional & Domain

PROCESS OF RECRUITMENT: Round 1: Written test Verbal: This section will have 15 questions related to synonyms, antonyms, Analogies, SC, Prepositions and reading comprehension. Aptitude: These sections will have 15 questions related to aptitude topics like Time & Work, Time & Distance, Blood Relations, Series Completion, Puzzles, Calendars, Clocks, Percentages, Ratio proportions, Ages, Pipes and Cisterns etc. Technical: This section will have 20 questions related to basic technical concepts from C, C++, Java, Linux, UNIX, DBMS, SQL, Programming fundamentals, Hardware, Software Engineering, Micro Processors etc. Candidates are informed to brush up their technical skills which were covered in their regular academic curriculum.

Round 2: Technical Interview

29 | P a g e

This is a major elimination round. Candidates should be thorough with their basic technical skills to clear this round. Candidates are here by informed to be prepared with their core subjects.

Round 3: HR Interview Candidates can expect basic HR interview questions like Tell me about your self, Why should I hire you, Why only WIPRO, What is SIX sigma level. Candidates will be tested in their communication and vocabulary during technical and HR interviews. Round 4: Placement Upon Joining, the incumbent shall be given an employee code number by Manager(HR) and he shall fill up the joining forms and shall submit the same to the Manager(HR) for further course of action. Wipro recruit 40% employees from campus recruitment. Another popular source for Wipros Recruitment is the Online Placement through NSR (National Skill Registry).

TRAINING
The term training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies.

WIPRO TRAINING MODE

30 | P a g e

Types of training: Wipro basically provide training for technical employees where for management trainees, they provide development programmes. Wipro conduct 10 weeks of training which is divided into 4 parts 1. FRP(fundamental readiness programme) 2. PRP(project readiness programme) 3. CRP(corporate readiness programme) 4. RLL(real life lab) 3 weeks 7 weeks

Apart from that there is some common training which come under induction is called College to corporate. They took assessment of all training that consists of 70 MCQ questions After the test, your score will be calculated and your salary is reviewed SCORE= (30%FRP) + (50%PRP) + (20% RLL) If the score is 60-70, least slab will be awarded
31 | P a g e

If the score is 70-85, middle slab will be awarded If the score is 85+, highest slab will be awarded.

DEVELOPMENT
Wipro Leaders Qualities Survey, which started in 1992, is one of our oldest leadership development initiatives. It has successfully contributed in our endeavor to nurture top class business leaders in Wipro. Wipro has developed an approach for Life Cycle Stage Development Plan. Training and development programs at various stages have been designed by mapping the competencies to specific roles. Competencies specify the Specific success behaviors at every role. The Leadership Development Framework

32 | P a g e

Entry-level program (ELP) - The program covers the junior management employees with the objective of developing managerial qualities in the employee. The target group is campus hires and lateral hires at junior level. New Leaders Program (NLP) - It is popularly known as NLP and aims at developing potential people managers, who have taken such roles or are likely to get into those roles in the near future. Wipro Leaders Program (WLP) - This program is for middle level leader with people, process, business development and project management responsibilities. These leaders are like the flag bearers of Wipro values and Wipro way of doing business. Business Leaders Program (BLP) - This is for senior leaders with business responsibility. At this level, people are trained up for revenue generation; and Profit & Loss responsibilities. The program covers commercial orientation, client relationship development, and team building and performance management responsibilities among other things. Strategic Leaders Program (SLP) - This program covers top management employees. The focus is on Vision, Values, Strategy, Global Thinking and Acting, Customer Focus and Building Star Performers. Wipro ties up with leading business schools of international repute to conduct this program for Wipro leaders.

33 | P a g e

PERFORMANCE APPRAISAL
Performance appraisal is a method by which the job performance of an employee is evaluated in terms of quality, quantity, cost and time. Performance appraisals are regular reviews of employee performance within organizations.

Appraisal System:Are your people developing and performing as fast as your business moves? Are you measuring the pace of your people and tracking it? In order to answer your Performance related questions, Wipro offers an integrated end-to-end Performance Management Solution. This solution is based on global people processes drawn from best practices and helps organizations streamline their performance evaluation processes.

34 | P a g e

Wipros e-Performance Management solution not only helps you establish the best practices in Performance Management, like 360 degree appraisal, MBO, etc, but enables reduced Performance Management cycle time without compromising on the sub-processes which are so critical to your HR values, like Work Planning Conference, Work Plan establishment, Development plans and Objective setting, Interim Review, Overall evaluation, detecting Performance deficiencies, Tracking, Documentation and Archiving. Once reviewed by HR dept. Assistant (HR) updates the records for each employees score in the database.

PROMOTION: Higher you go. Heavier you get

A promotion is the advancement of an employee's rank or position in an organizational hierarchy system. Promotion may be an employee's reward for good performance i.e. positive appraisal. Before a company promotes an employee to a particular position it ensures that the person is able to handle the added responsibilities by screening the employee with interviews and Tests and giving them training or on-the-job experience.

BASES OF PROMOTION
1. Seniority:-

Seniority simply depends upon how long the employees is doing job with the company. The length of service and talent are both interrelated with each other. It is based on the tradition of respect for older people. It creates a sense of security among employees and avoids conflict arising from promotion decision. 2. Merit:Merit implies the knowledge, skill and performance records of an employee. It helps to motivate competent employee to work hard and acquire new skills. It helps to attract and retain young and promising employees in the organization.
35 | P a g e

COMPENSATION
Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction. Wages and salaries structure is very vital for the retention of the employees as due to stiff competition, if proper salary is not given then the employees will go to those organization offering higher salaries. Jivraj Tea Ltd is actively involved in retaining good manpower in the organization by providing proper salary and incentive methods. Wipro runs 50 offices in India. It has a branch office in USA, Canada, Europe, Middle east, Africa etc. Pay scale of Employee at Wipro:
Employee Class No of Employee Salary (Monthly)

A+ class A class B+ class B class Technician Zero level

128 1240 33000 22000 4000 3440

12000 U.S $ 150000 INR 60000 INR 40000 INR 30000 INR 10000 INR
As per 2009 Wipro CTC report

36 | P a g e

EMPLOYEE WELFARE
According to the Oxford dictionary, employee welfare or labour welfare means the efforts to make life worth living for workmen. Labour Welfare means anything done for the comfort and improvement, intellectual or social, of the employees over and governmental, which is not a necessity of the industry. Education Facility Medical allowances Housing facility Canteen in the campus Sports ground Club membership Insurance policy

37 | P a g e

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The 21st Century is a world of growth but also of contradictions. Realities keep changing in an unpredictable world. We are in the midst of volatile environment crises that need to be immediately attended to. Wipro, as a responsible corporate, realize that we need to take our success to other sections of society who struggle to care for their own basic needs. Our environmental and social actions, which are part of our psyche, can help make our planet a better world. Hence we are committed to addressing societal challenges through our various initiatives. Wipro Cares Wipro Cares is our community initiative that helps marginalized communities living in our neighborhoods. This initiative is organized as a trust and works with funds donated by Wiproites and these funds are in turn matched by Wipro. Their Operations: Wipro Cares works on the model of channelizing voluntary employee efforts to contribute to the needs of the neighboring communities. Volunteers become members of the local chapter and few may emerge as leaders. These chapters in different locations proactively identify projects based on the requirement of the community in that location. These projects are then evaluated by the project head and the central team to be approved by the trustees.

They have launched Wipro Cares projects in the following areas:

38 | P a g e

 Education Healthcare Environment Disaster Rehabilitation Wipro Cares has also volunteered efforts in various areas where extreme circumstances required humane interventions.

EDUCATION: Education is recognized as a key investment in Wipro, not only within, but also marked and leveraged as a social initiative. Through the "Applying Thought in Schools" initiative, we take our tagline very seriously to build a network of social organizations committed to educational reforms. Education quality, research and interventions are clearly defined that our program explores. Through our projects, we have engaged with more than 1000 schools, 10,000 educators and 30 social organizations across 17 states in India.

39 | P a g e

FINANCIAL REPORT
EXTERNAL BENCHMARKING (2011)

PARTICULAR
Net Sales

WIPRO

INFOSYS
25,385.00

TCS
29,275.41
0.06% 34.8% 27.78% 3.75%

TECHMAHINDRA 4,965.50
0.00% 39.14% 0.00% 0.00%

26,300.50 Material 14.4% Employee cost 41.5% Manufacturing cost 10.57% Selling & Administration cost Interest 0.02% Depreciation 2.28% 2.91% 1.83% 2.78% 7.22% 6.47% 0.004% 0.06% 2% 10.3% 49% 0.09%

TOTAL

75.24%

69.54%

68.28%

43.92%

Operating PBT

24.76%

30.47%

31.72%

56.08%

40 | P a g e

80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

WIPRO INFOSYS TCS

30,000.00 20,000.00 10,000.00 0.00

NET SALES INTERPRETATION: Net sales of WIPRO is reasonably high Comparing to other players in the industry, WIPRO also produce some tangible products thats why the material cost is comparably higher Comparing to the INFOSYS & TECH MAHINDRA, WIPRO is not utilizing its manpower at the optimal level WIPRO controls its manufacturing cost under the industry level WIPRO spends a Quite high amount of fund in Advertisement of other selling expenses rather than TCS Business model of WIPRO is tend to be zero working capital because it is very little depends on the borrowed money WIPRO didnt invest sufficient amount of money as fixed asset which is below standard of industry benchmark
41 | P a g e

INVESTMENT:
2003-04 100 2004-2005 123.32 2005-2006 131.08 2006-2007 107.09 2007-2008 48.18 2008-2009 52.29 2009-2010 76.98

300 250 200 150 100 50 0 2003-04 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Interpretation:

Investment figure shows healthy progress of the company. Investment has increased in 2005, 2006 and after that it has started decrease in 2007, 2008 which shows not good growth compared to base year. As they have invested most of their funds in Indian money market mutual funds. shows that the company has not take risk but the company has invested Money for developed its own business

As the IT market started to boom after recession, the amount of fresh investment is also increased during 2008-2009

42 | P a g e

Net sales/services: Year Sales

2003-2004 100 2004-2005 149.73 2005-2006 129.23 2006-2007 141 2007-2008 133.21 2008-2009 129.32 2009-2010 256.24

300 250 200 150 100 50 0 2003-04 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Trend Analysis of Total Income and Total Expenditure:

2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Total 100 income Total 100 expenditure

138.23 133.38

130.03 131.13

142 143

133.36 13.13

147.65 145.56

Interpretation: Though the sales has been continuously increased from past 3 years but the proportionate expenditure is also rising so overall not making any huge effect on net profit of this company In 2006-07 Income from mutual fund dividend increased by 93.57 % and Interest on debt instrument 567 % increased in 2005-06 compare to previous year Percentage Expenditures increasing year by year little more than Income Increased, so that Profit margin Decrease year by year
43 | P a g e

Current Ratio: This ratio shows the proportion of Current Assets to Current Liabilities. It is also known as Working Capital Ratio as it is a measure of working capital available at a particular time. Its a measure of short term financial strength of the business. The ideal current ratio is 2:1 i.e. Current Assets should be equal to Current Liabilities.
Current Ratio = Current Assets / Current Liabilities Year Ratio
20032004 1.26 20042005 1.58 20052006 1.44 20062007 1.67 20072008 2.13 20082009 2.34 20092010 2.55

Ratio
25 20 15 10 5 0 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Interpretation: Current ratio is always 2:1 it means the current assets two time of current liability After observing the figure the current ratio is fluctuating In the year 2008 ratio is showing good shine Hear ratio is increase as an increasing rate from 2004 to 2010

44 | P a g e

Operating Profit Ratio = (Operating expenses)/ Sales X 100

Year Trend 20032004 83.5 20042005 80 20052006 79 20062007 77.9 20072008 77.1 20082009 75.4 20092010 80.2

Ratio
25 20 15 10 5 0 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Trend

Interpretation: Operating ratio is lowest during current 2008-2009. This shows that the expenses incurred to earn profit were less compared to the Previous two years. Operating ratio is decreases from 2004 to onward decreasing rate. This ratio drastically increases in 2009-2010

45 | P a g e

Earnings per Share: Earnings per Share = Net Profits for Equity Shares / No. of Equity Shares
Year Trend
2003-2004 7.43 2004-2005 11.1 2005-2006 13 2006-2007 14.7 2007-2008 20.6 2008-2009 22.6

Trend
25 20 15 10 5 0 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Trend

Interpretation: Earning per share is increasing as a increasing rate it is good for investor and shareholder It shows that the companys share value increases over a period of time

46 | P a g e

SCENARIO ANALYSIS

Interpretation: Gross income of the company drastically increases Growth rate of the company is positive in terms of employees They are very much focus on technology savvy persons Service & IT products are the key element of revenue generation

47 | P a g e

SELF COMPETENCY MAPPING FOR COMPATIBILITY CHECK

Basic requirement to hire management trainees for Wipro (2010 data)
PARAMETERS AGE: Education: Marks Range: Experience: Mobility: Technical skills: Human skills: 21-27Years PGDM/MBA with 60% 60% through out the Academia 0-2 years in IT field Anywhere in India MS Office, MIS reporting Excellent communication/interpersonal skills, Team player Work environment: Mandatory skills: Work shift: Work load: Official / Voice processing Mathematics/ Day/Night 9 hours with 1 hour break statistics/physics / computer science Partially Fulfilled Fulfilled Fulfilled Fulfilled REQUIRED Fulfilled Fulfilled Fulfilled Partially Fulfilled Partially Fulfilled Partially Fulfilled Partially Fulfilled PRESENT

120 100 Axis Title 80 60 40 20 0 0 2 4 6 Axis Title

Scatter diagram shows the compatibility level

REQUIRED PRESENT Linear (REQUIRED) Linear (PRESENT) 8 10 12

Interpretation: It shows that the basic requirement to get into the WIPRO is fulfilled by my profile but in terms of experience & some skills, I have some short comings. Those pitfalls can be compensated by the practice over a period of time.
48 | P a g e

ALTERNATIVE CAREER PATH

RECRUITMENT PROCESS OUTSOURCING: Recruitment Process Outsourcing (RPO) is a form of business process outsourcing (BPO) where an employer outsources or transfers all or part of its recruitment activities to an external service provider. Outsourcing the human resource (HR) processes is the latest practice being followed by middle and large sized organizations. It is being witnessed across all the industries. In India, the HR processes are being outsourced from nearly a decade now. Outsourcing industry is growing at a high rate. Human Resource Outsourcing refers to the process in which an organisation uses the expert services of a third party (generally professional consultants) to take care of its HR functions while HR management can focus on the strategic dimension of their function. The functions that are typically outsourced are the functions that need expertise, relevant experience, knowledge and best methods and practices. This has given rise to outsourcing the various HR functions of an organization. The non-core recruitment processes such as database searching, job advertisements, head hunt research, internet mining, etc. involve 50 - 60% of the recruiters time, energies and costs. Outsourcing the non-core recruitment process creates additional efficiencies, while simultaneously allowing for a focus on building relationships with candidates and clients. Major consultancy firms are predicting a big boom for HR outsourcing as a whole. According to Gartner, McKinsey and others the outsourcing market is expected to touch US$ 78 billion by 2004. Gartner predicts that the worldwide HR outsourcing market will grow from $21.7 billion in 2000 to $58.5 billion in 2005 1. HR outsourcing is expected to be the fastest growing segment in the outsourcing market. 80 percent of companies now outsource at least one HR activity, and the number is growing fast. Though some analysts argue that by outsourcing major HR activities, the number of HR jobs is decreasing, others feel that on the

49 | P a g e

contrary by outsourcing these kinds of repetitive and administrative jobs, higherlevel HR professionals get the time they need to tackle strategic workforce challenges. With the growing market there are a number of vendors available who cater to the diverse needs of various markets and provide HR services, including staffing, payroll, benefits administration, training, employee relations, and compensation. Consequently, what started in the 1980s as a simple payroll outsourcing has exploded into a $32 billion a year business involving all facets of HR. In just four years, one HR services provider-Exult-has grown from a start-up with a handful of people to an established company with 1,500 employees and more than $400 million in annual revenues. Other big players include Accenture HR Services, ADP, Fidelity, Hewitt, and Convergys. HR OUTSOURCING AT MA FOI MANAGEMENT CONSULTANTS Chennai based Ma Foi is a perfect example of a company that has profited by effectively tapping the HR outsourcing market. The firm which initially began just by providing outsourcing services in recruitment is moving into other areas like compensation management, psychometric evaluation, training exit interviews, and outsourcing of personnel including sales staff and manual labor. The firm is a public limited company with revenues of $10.2 million for the financial year ending 2003. Such is the potential of the HR outsourcing market that if handled with expertise and integrity can be a highly profitable market. The company has identified that its potential markets range from pharma to FMCG. Its major clients include Coca Cola India, Thomson Electronics, Madura Garments, Alstom group and a major Healthcare recruiter in the UK. The firm recently launched three products, MRMS (Ma Foi Resume Management Systems), HRMS (Ma Foi Human Resource Management Systems, and DAREM (Daily Activity Reporting and Expense Management). According to Rajiv Krishnan, the director and CEO of the Ma Foi, these products will considerably reduce the time that corporate spend on regular transactional work. For example, the MRMS offers tracking, complete word-by-word search facility,
50 | P a g e

automated e-mail notification, user-friendly interface, total security and consolidated reports. A major software company can get one lakh resumes and this can be a useful tool for tracking these resumes. The second product, HRMS, encompasses a wider spectrum of employee HR needs. It helps capture, track, store, and modify all information concerning an employee in an organization. It has the ease of use for multiple user access and helps in integrating employee information. The third product DRAM helps companies to keep a track of the daily activity reporting. HR Outsourcing Human Resource Outsourcing: Scope for India One very important trend in the recent times has been the growth of human resource outsourcing. HR outsourcing is the outsourcing of peripheral but necessary administrative tasks such as payroll, benefits, education/training, recruiting personnel, administration, to realize economies of scale and achieve standardization of services. However, the future seems to be very promising. It's set to become a $ 51 billion market worldwide in 2005, representing 39 per cent of the total business process outsourcing revenue. Estimates show that the latent size of HR outsourcing in India is about $ 2 billion with a current market of $ 27 million and it is growing at an alarming rate of about 50 per cent. India has immense potential as more than 80% of fortune 1,000 companies are discussing HR outsourcing as a way to cut costs and increase productivity. Right now, India is barely skimming the surface of the HR outsourcing market potential. Indian life Hewitt (ILH), FIDELITY, EXULT and MAFOI are some of the prominent HR outsourcing services providers in India and the clients include giants of manufacturing, software and service industries like GE Capital, Ford Motors, Hyundai Motors, Satyam Group, Infosys, Enron, Haldia Petrochemicals and HSBC, to name a few HR outsourcing has a huge potential for employment also. Nasscom numbers are a million software jobs by 2008; HRO would be about a 25 per cent of that.
51 | P a g e

THE FUTURE AHEAD The future of HR outsourcing in India is poised to be very effective because of its intrinsic advantages such as low cost, ready pool of English speaking manpower and geographic positioning is emerging as a viable destination for HR outsourcing companies to set up their businesses. While currently there are only a few major players (table 1.2) the trend seems to be catching up as companies are showing marked interest to improve on services such as pay roll benefits as well as complete HR delivery. Companies are looking to outsourcing the complete range of HR delivery and designing products on policies, compensation, structure, and recruitment. Indian companies are not only providing services for the clients abroad but are also catering to the local market. Moreover these players are moving up the value chain. Mafoi has emerged as a major HR outsourcing center. It is estimated that currently the organized sector of HR is catering to only 5% of the whole market . This is the right time for the players to tap this emerging market.
Outsourcing Process Flow Chart The major HR functions companies outsource

Workforce Relations Benefits Payroll Rewards Recruiting Learning / Development Effectiveness Workforce Planning Workforce Performance
52 | P a g e

MOVEMENT OF EMPLOYEES Immigration & Visa issue Universal recognition Social security Tax Local employement Hiring Law

GOVT. REGULATION ON BUSINESS ENTITY Security of entity like JV, Subsidary Restriction of foreign investment Volatilation of foreign exchange Staffing & Maintaince condition

CHALLENGES OF WIPRO

OTHER CHALLENGES Macro Environment related Finance problem Business Model

They have been more focus on sales rather than brand. but the end of the day on should understand the brand value by the campaign "Applying the Thought"

53 | P a g e

CONCLUSION
At the end of the project it can be said that there is an ample opportunity for WIPRO to grow and be the top most company in the world business scenario. If we see the overall performance of WIPRO it is very much satisfactory in terms of employee engagement & Contribution to the Indian GDP. It is also found that WIPRO is one of the market leaser in Indian IT Segment by innovation new dimension of services and technology. They remain successful to tie up with Microsoft Ltd. for consecutively Two years for project work outsourcing. Therefore, we can also say that WIPRO is the leading name of Globalization. They also provide the equal opportunity to employees by which they are going to be the pioneer of employee retention and talent management. On the social point of view, this company contributes a lot to the socio-economic sectors, NGO, Education, Poverty reduction by its corporate social responsibility. Further more it is my own belief that the company will be able to bring the reformation of Indian Business sector.

54 | P a g e

BIBLIOGRAPHY
Books:
Annual Report of Wipro Limited for Financial Year 2004-05, 2006-07,2007-08, 2008-09, 2009-10. Narayanaswamy R., (1998): Financial Accounting: A Managerial Perspective, Prentice-Hall of India Private Ltd, New Delhi., Third Edition, Reprint 2009. Indian IT/ITes Industry: Impacting Economy and Society: 2007-08 A NASSCOM and DELIOTTE Study IT/ITeS Market and Opportunities IBEF (India brand equity Foundation) NASSCOM Strategy Review 2010,2009, 2008, 2007,2006. Bangalore Tiger by Steve Hamm,2008 The Wipros Founder by N. k. Astana, 2007

Newpapers: 1. Economic Times 2. Business standard Websites: 1.www.finance.yahoo.com 2. www.moneycontrol.com 3. www.infosys.com 4. www.nasscom.org 5. www.ncaer.org 6. www.mait.com/it-policies.php#schemes 7. www.scribd.co.in 8. www.mafoiconsultancyservices.com 9. www.wiprocorporate.com/ecoeye/
10. www.wipro.com 11. www.wikipedia/wipro.com/php/
55 | P a g e