WIPRO telecom strategy

Abstract

The telecom equipment business is bock on the growth path and all three players _Telecom Equipment Vendors, Telecom Service providers and R and D Service Providers stand to gain from the renewed momentum. Telecom Players, like other R and D powerhouses worldwide have realized the importance of Outsourcing and specifically Offshoring, where Indian players like Wipro, Infosys, TCS and others are very well positioned. The most common mode of software services delivery for a large scale customer is through a dedicated Offshore Development centre (ODC). The ODCs have had a long journey, with some ODCs spanning almost 8-10 years. Going forward they face formidable challenges from customers' captive centres and other R and D service providers. This report looks at the fundamental concept of on Offshore Development Centre (ODC) in a large size software service organization (Wipro Technologies) to answer the following questions: Have the ODCs been successful in providing value to customers? What are the challenges that this existing form of ODCs faces today? What are the possible synergies between different ODCs and how can they be utilized? What is the next stage in the growth path for ODCs? How to reach there? The ultimate aim is to devise a strategy for Wipro Telecom Solutions division. Based on the study of these issues backed by data wherever possible, the authors have attempted to propose two new models - PAN ODC and Supplier Evolution Framework. The former model has evolved more from endogenous factors like tacit knowledge: the latter evolves more from exogenous factors like competition and cost to the customer.