Experts feel that once Rishad Premji takes over as the executive chairman of Wipro, his top priority will be to push and accelerate growth which the IT giant has been struggling to achieve over the last few years. Though there won't be any immediate changes in Wipro's strategy, after the takeover, Rishad is expected to be more active and vibrant when it comes to portraying Wipro as a power brand which has taken the back seat given the conservative approach of the organisation. New acquisitions, growth in existing businesses and expansion in new geographies are expected to continue in the organisation even after Rishad's takeover.
“Over the last few years Azim Premji was into more of a mentoring role and was not involved in day-to-day affairs of the company as its executive chairman. His son, Rishad, is young and energetic, and may play a much more active role as the executive chairman of the company and may get more actively involved in the affairs of the company. We can expect some broad strategy changes once he takes over as the new chairman. Off late, Wipro has been on an acquisition path and has made good strategic acquisitions in the recent times. This is expected to continue and Rishad may also play a critical role in strengthening the company's client facing approach given his different approach. This is in turn going to improve the growth parameters of the organisation as a whole,” Amit Chandra, assistant vice president, IT research at HDFC Securities told THE WEEK.
Chandra also feels that Wipro is on the right track by offering dividends to the share holders and had offered three buy backs over the last three years. “Besides growth, there are margin pressures that the company is facing due to wage inflation as they have to pay high wages to its US-based workforce. At the same time, there is also rising attrition in the US due to poaching by rival companies. This needs to be dealt with. Though the senior management is not expected to see major changes, Rishad may bring in new people to strengthen the middle management team in order to accelerate growth. He is also actively expected to increase Wipro's focus on new technology areas such as artificial intelligence, machine learning etc,” added Chandra.
Experts such as Murthy B.S., CEO of Bengaluru-based firm LeadershipCapital, feels that the transition at Wipro had happened around three to four years back and being a conservative organisation, it has made it “official” now. Murthy suggests that Wipro should shed its conservative image and should reinvent itself as a brand.
“Rishad is a young person and he can be the new brand identity of the organisation. I think he can now be more vocal, and communicate with youngsters and the new talent. Over the years Wipro has not figured in the top few companies to join for the young talent. They look towards companies such as Infosys, Cognizant and TCS to start their careers with. Rishad can change this and can connect with new talent in a different manner. Today many youngsters aspire to join Amazon rather than Wipro this should change. With a young leader like Rishad this will happen over the next few years. He can change the entire communication strategy of the organisation,” said Murthy.
