Wipro&#8217;s Net Profit Dips 12%, Marks Fourth Quarter Slump
Indian IT giant Wipro reported a 12% decrease in its consolidated net profit, which amounted to ₹2,694 crore in the third quarter of fiscal 2024. This marks the fourth consecutive quarter of decline for the company. During the same period, its consolidated revenue also dropped by 4.4%, totaling ₹22,205 crores. Additionally, Wipro secured 14 large deals with a total contract value (TCV) of $3.2 billion, 71% of which were new net additions. Among these, one of the most significant deals signed in Europe this quarter involves transforming the digital workplace services of a multinational telecommunications company, aimed at enhancing client satisfaction and reducing operating expenses. The team will build an AI-powered platform for them that provides service desk on-site and remote support services for 400,000 users and 80,000 managed services across 240 locations worldwide. Turns out that Wipro’s clients are now increasingly requiring AI solutions aligned with their business goals, now a standard in various offerings including cloud and digital workplace services. In engineering, particularly in automotive and manufacturing, there’s a growing demand for AI to boost R&D and speed up product development. Wipro supports this through its Enterprise services, focusing on developing AI models and solutions with the generative AI framework. “AI is now moving from I would say the curiosity and experimentation stage to becoming vital to business strategy. In fact, we can confidently say that every long-term large deal now has an AI component,” Thierry Delaporte, chief executive officer and managing director, of Wipro, said during the quarterly result announcement. The tech giant is also working with a global healthcare insurer to develop a generative AI-powered knowledge research solution to transform the contact center to improve patient experience and operational efficiency by cutting the time it takes to analyze healthcare plan documents and response time. Wipro has created a generative AI powered assistant for a Fortune 500 investment and insurance company, enhancing email campaign efficiency and boosting click-through rates. The firm’s AI 360 strategy heavily focuses on growing partnerships with key players. Recent collaborations include Nvidia, aiding healthcare firms in developing AI-centric strategies and products, and IBM, working on joint ventures with IBM Watson X for robust AI solutions. To support these initiatives, Wipro has trained 210,000 employees worldwide in AI, introducing customized learning programs for various roles and functions. “Our goal is to ensure that everyone at Wipro has the skills to fully leverage AI in their everyday work and for AI-related client projects. We are accelerating generative AI adoption internally by integrating the technology across our entire portfolio of platforms,” he added, stating it is resulting in quality and productivity improvements across HR, marketing, and sales operations, as well as software development, and quality engineering and testing. However, just like its contemporaries Infosys and TCS, the company did not mention the revenue it has gained or is expecting from investing in generative AI although it is “confident that we have the right vision, the right strategy, and the right leadership to continue to grow and keep us competitive, resilient, and ambitious.”
Just like its contemporaries Infosys and TCS, the company did not mention the revenue it has gained or is expecting from investing in generative AI.
Just like its contemporaries Infosys and TCS, the company did not mention the revenue it has gained or is expecting from investing in generative AI.
["Wipro"]
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["AI", "generative AI", "Aim", "RAG", "R", "Go", "Git", "ViT", "programming_languages:R", "programming_languages:Go"]
Shritama (she/her) is a technology journalist at AIM who is passionate to explore generative AI with a special focus on big techs, database, healthcare, DE&amp;I, hiring in tech and more.