wipro ceo structure

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IBS Center for Management Research

Wipro at Crossroads: The Failed Dual CEO Structure
This case was written by Hadiya Faheem, under the direction of G V Muralidhara, IBS Hyderabad. It was compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation.  2013, IBS Center for Management Research

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313-158-1

Wipro at Crossroads: The Failed Dual CEO Structure
“We believe that two people who have worked together for more than 10 years and been in the company for more than 15 years would be able to work very well as a team. The fact that 75% of our revenues come from global markets, the fact that we are growing at 30% a year in a service, highly people-intensive industry, we figured that a two-man team at the top would be stronger than one man at the top. I continue to be executive chairman, but they are the joint CEOs of our IT business.”1

– Azim Hasham Premji, founder and Executive chairman, Wipro Ltd., in June 2008. “Wipro’s adoption of a joint-CEO structure is a step indicating to internal senior management the potential of rising to the top. To the other stakeholders, this move signifies depth of its management cadre in the IT business. The IT business is large enough to need two CEOs.”2 – Sudhir Sethi, chairman and managing director of IDG Ventures India3, in June 2008. “Forget about the IT industry, the concept of a dual CEO has not even worked in traditional industries such as manufacturing. This model does not train the gun on any specific person and that has been telling on the company's performance.” 4

– Alok Shende, principal analyst and founder of Ascentius Consulting5, in January 2011.

INTRODUCTION
In April 2013, Bangalore-based information technology, consulting, and outsourcing company, Wipro Limited (Wipro), reported the weakest sales growth compared to its peers in the Indian Information Technology (IT) industry for the Financial Year (FY) ended March 31, 2013. While Wipro recorded an increase of 16 percent in FY 2013 revenues, its peers such as Tata Consultancy Services6 (TCS) and Infosys Ltd.7 (Infosys) posted an impressive revenue growth of 29 percent and 19.6 percent respectively. 8 Wipro also experienced a sales increase of only 5 percent for the FY 2013 against the industry growth of over 10 percent.9

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“Team Leadership at Wipro: Are Two CEOs Better than One?” http://knowledge.wharton.upenn.edu, June 12, 2008.
“Team Leadership at Wipro: Are Two CEOs Better than One?” http://knowledge.wharton.upenn.edu, June 12, 2008.
Founded in 1996 by International Data Group, IDG Ventures India is a venture fund company. Adith Charlie, “TCS, HCL Surge Ahead of Infosys and Wipro in Q3,” www.thehindubusinessline.com, January 21, 2010.

Ascentius Consulting is a company that offers market consulting and analytics expertise company. Founded in 1968, Tata Consultancy Services is an Information Technology consulting services and business process outsourcing organization. For the FY ended 2013, the company recorded revenues of US$ 11.66 billion

Founded in 1981, Infosys Ltd. is a business consulting, technology, engineering, and outsourcing company. For the FY ended 2013, the company recorded revenues of US$ 7.4 billion “5 Reasons Why the Wipro Stock Fell over 10%,” http://profit.ndtv.com, April 22, 2013. “At Wipro, Growth Remains a Mirage,” http://articles.economictimes.indiatimes.com, April 19,...
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