We consider our channel partners to be an extension of Wipro.

Wipro''s channel business has been led from the front by its chairman and

DQ''s IT Man Of The Year 1999, Azim Premji. If Wipro is perceived today as a

channel-friendly company, it is largely due to the vision and philosophy of

Premji who takes time off to attend channel events. It is because he has his ear

to the ground that Wipro has been able to match the expectations of its channel

partners and help them grow in revenues and profitability. In an exclusive

interview with CI on its anniversary, Premji outlines Wipro''s

action plan on channels.

It is your vision that has enabled Wipro to be accepted as a channelfriendly

organization. Could you please share this vision with us?

Wipro understood very early into the IT business, in the mid 80''s, that the

market was segmented in terms of the corporate buyer and the first-time user (FTU).

The needs of customers in these segments were different. The FTU segment, we

knew, could only be addressed by a channel, which is in close proximity to the

customer.

We were very clear from the start that the customer, irrespective of whether

he was being addressed directly or through the channel, should get the same

"Wipro look and feel." So we selected channel partners who shared our

vision. Many of them were first-generation entrepreneurs who have since grown

with us.

Wipro was the first to start a support service with franchisees. Our

franchisees complemented and increased the value proposition our Channel

gave to the customer.

What is your channel philosophy?We consider our channel partners to be an

extension of Wipro. They reflect

Wipro''s values. We are genuinely interested in ensuring the profitability of

our channel partners. We constantly strive to increase the product and

service offering from Wipro so that they grow both in terms of revenue and

profits. Each marketing executive in Wipro, assigned to channel management,

typically handles three or four channel partners, against the industry standard

of 10+. Major strategic decisions concerning the channel and its customers are

taken after consulting our key partners. Whenever required, we provide inputs in

HR practices, debt management and other best practices to our partners as they

form a part of Wipro''s close knit fraternity.

Channel partners have been telling us that you take time off to attend

major channel events of Wipro. Why do you find it important to attend

channel events?

Our channel forms a very strategic conduit

Our channel forms a very strategic conduit to meeting the IT infrastructure

needs of the small and medium (SME) segment. We have around 200 key partners

across 104 locations in the country. I make it a point to meet them in different

cities, and annual channel events give us an excellent opportunity to interact

with our partners as one group with the same interests of furthering channel

sales. We consider it very important to receive feedback on Wipro as a

principal. It is our belief that top management interaction with the channel is

critical in formulating channel strategies.In the Internet Age, when vendors

are trying to go direct, how should

channels position themselves to do better business?

In the whole distribution chain unless there is a value add by the channel,

revenue and profits will be under strain. The value-add needs to be defined by

the customer. If Wipro and its Partners deliver genuine value-add to the

customer in terms of services such as systems integration and application

solutions, the customer will seek us out, and vendors who go directly to the

customer will not be a threat. We believe there will be a continuing role of the

channel in the Internet age.In what ways is Wipro integrating its business

model with the Internet to do business through channels?Wipro is e-enabling

all its channel transactions. We have already

launched a web-based ordering system (WBOS) through an extranet with the

partners. Marketing communication and order processing are being

done on the Web.

What are some of the major initiatives that Wipro is planning for

channels in the short and the long term?At Wipro Corporation we have seen

significant benefit from the Six Sigma

Quality initiative we started three years ago. We plan to extend our

learnings from Six Sigma, on ways to reduce defects and cycle time, to our

channel partners as well. We will take up projects within the channel

organization so that they can reap the benefits of Six Sigma Quality.

We hope to further hone the skills of our channel through training. Wipro''s

expertise in areas such as systems integration, application development and

domain knowledge will be shared with the channel, and we plan to develop their

skills in network, platform and security integration.

Our plan to increase our presence in out locations will require significant

involvement with our channel partners in terms of strengthening the range of

products and services offered to customers.As we continue to be the largest

partners for technology companies like SUN and Cisco, our partners will derive

the benefit of ourcollaborations to focus on technology offerings and go up the

value chain.