Wipro banks on 'Quantum Innovation' for future growth

BANGALORE



JULY 21, 2006

IT services major

Wipro Technologies, which is scaling its competencies in R&D services and

product engineering, has now decided to make specific investments into

innovation. The company has structured a special new initiative called Quantum

Innovation.

“We have

identified four-five areas under the program which will have specific investment

and teams. We have identified areas which require distinct focus including some

product engineering and IP intensive areas as well as potential market

opportunities that we plan to ride on,” said Ramesh Emani, president, product

engineering services group, Wipro Technologies.

According to

sources, some of the areas identified under the program include technologies

that were acquired as part of Wipro's recent buy-outs such as Enabler,

Saraware, NewLogic and others.

Emani said that

this program would be a broader extension of the Center of Excellence (CoEs)

that the company has set up around IT services and technologies. “The CoEs are

giving us incremental value and contribute substantially higher revenues. The

Quantum Innovation program will take a much broader view,” he added.

Around 500

engineers are currently working on innovation-related projects at Wipro. Emani

said that the program would not be location-specific. Innovation projects make

up for five percent of Wipro's revenues (around $100 million a year).

The company is

gunning for 10 percent revenue share from quantum Innovation in three years'

time. Analysts say that this kind of focus and differentiation could place Wipro

in good stead in the competitive global IT services market. “Indian service

vendors are realizing that services are not just about volume play. Wipro's

move is a harbinger that innovation will now come from value-based projects and

not just industry verticals,” said Siddharth Pai, partner and MD, TPI India.

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