Analysts Predicted Change, but the Abruptness Shocks Industry Observers
The departure of Thierry Delaporte, the chief executive officer (CEO) of Wipro, has sent shockwaves through the industry, exacerbating the company’s ongoing leadership crisis. While signs of turbulence were evident, Delaporte’s exit came with unexpected abruptness, leaving analysts and industry watchers stunned.
Phil Fersht, CEO and chief analyst at HFS Research, asserts that the leadership change at Wipro was long overdue. “The morale has been sapped out of Wipro for a year now,” he remarked, highlighting the growing discontent within the organization.
Delaporte assumed the role of Wipro CEO on July 6, 2020, succeeding Abidali Neemuchwala. However, his tenure was marked by significant restructuring efforts and a string of senior-level departures. Despite initial optimism surrounding his appointment, Delaporte’s strategies failed to resonate with many within the company, leading to disillusionment over time.
The challenges were further compounded by Delaporte’s remote leadership style, with him being based in Paris while key operations were centered in India and the US. Fersht emphasized the importance of physical presence during challenging times, a factor that seemed lacking in Delaporte’s approach.
Wipro’s performance under Delaporte’s stewardship also failed to meet expectations, with revenue declining and the company slipping in rankings within the IT services sector. Despite ambitious restructuring initiatives and acquisitions, Wipro struggled to regain momentum, facing consecutive quarters of declining revenue growth.
Amidst this tumultuous backdrop, Srini Pallia, a Wipro veteran of over three decades, has been appointed as the new CEO and managing director. Pallia’s deep understanding of the company and its culture is seen as a stabilizing force during a period of transformation.
While external candidates were considered, Rishad Premji, chairman of Wipro, expressed confidence in Pallia’s ability to navigate the company through these challenging times. Pallia’s client-centric approach and strong execution focus align well with Wipro’s values, offering a glimmer of hope as the company charts its course forward.
