Strategic expansion of an Indian IT Company

The expansion and locating new centers in different parts of the world is undertaken with a view to be closer to the customers in that geographical location. Lrt us take the case of Indian IT major Wipro.

First to begin with IT major Wipro Technologies will open a delivery center at Chengdu in China shortly.This is the firm’s third center in that country after those in Beijing and Shanghai since it made its China debut three years ago.

Located in southwest China, Chengdu is the capital of Sichuan province and is an established base for the electronics ad IT Industry. The hi-tech industrial development zone three has attracted global players like IBM, Intel, Microsoft, Nokia, Motorola, SAP and local giants like Lenovo.

Chengdu is a university town with a huge talent pool available at lower costs, which was very attractive for Wipro Technologies enterprise solutions.

The company will have employed around 500 people in China by the end of the next nine months, up from the present 120. While it has aggressive plans for China to leverage the local language capabilities for its multinational clients that have bases in that country, it is moving ahead cautiously as some of the leading Indian IT firms have burnt their fingers in the dragon city.

In China Wipro provides software services and carries out research and development work for its global customers based in China. These clients are in the space of telecom and manufacturing, including auto. For instance, it has implemented SAP for Sanyo in China.

The company also plans a BPO at Chengdu for financial services and financial accounting work. The city, in fact, is establishing itself as a financial hub in western China. After China, the company is likely to establish a small global delivery center at Mexico. This will be for proximity to its US customers.

It opened a center at Bucharest in Romania early this year with under 100 people to serve its European customers and also set up shop at Curitiba, Brazil, recently to serve the European and Brazilian markets.