Wipro chief operating officer A L Rao told DNA Money: “A majority (80%) of that hiring will be local (Chinese) employees.”
Will focus on supporting global clients’ local operations; seeks tie-ups in Japan
NEW DELHI: Wipro Ltd plans to hire some 1,800 employees in China in the next three years, taking the total headcount 2,000, as it focuses more on offering support to the local operations of its global clients and expanding outside the US to offset the impact of the sub-prime mortgage crisis.
Wipro chief operating officer A L Rao told DNA Money: “A majority (80%) of that hiring will be local (Chinese) employees.”
The rest will comprise subject matter specialists and onsite employees, he added. Wipro may also set up development centers to target Chinese clients.
Besides, the company is looking at entering into strategic alliances in Japan where it may also go for acquisitions in the long term. “We will start with alliances to work with local company … so far we have done everything there on our own,” Rao added. “Inorganic growth is another strategy for us, if there are strategic drivers to have a skill-set which we do not have, we might consider someone,” Rao said. It doesn’t have any company in consideration right now.
“When it (acquisition) happens, it happens. Right now we are looking for alliances,” Rao said.
Wipro, which has been operating in Japan since 1998, bought a wireless design unit of Oki Electric Industry Co Ltd in November last year.
Rao expects good growth in the company’s banking, retail and manufacturing verticals to boost Japan revenues, which is pegged around 3.5% for the current fiscal.
Wipro has around 2,500 people working for Japanese clients and plans to maintain the annual growth rate of 30% in that country.
Japan’s software service industry is dominated by firms such as NTT Data Corp and NEC Corp, which have strong ties with the country’s banks, the postal system and manufacturers.
Rao said though the culture issue has been resolved to a large extent in China and Japan, language issue remains a major hurdle. “Major challenge in these (China and Japan) markets is still the language,” Rao said.
Last month, Wipro’s rival Infosys Technologies Ltd formed a strategic alliance with Japan’s Nihon Unisys Ltd to develop and market new products together.
vivek_s@dnaindia.net
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