Ever since Srinivas Pallia took over as Wipro chief executive officer after the abrupt resignation of its former CEO Thierry Delaporte, there have been a rejig at the top management level across the organisation. One of the most significant departure was of Amit Choudhary who put in his papers as the chief operating officer (COO) to pursue opportunities outside the organisation. Choudhary was one of the trusted men of Delaporte who was brought in to Wipro from Capgemini.
It is a common that a new CEO brings in their own trusted people at the top level. Sanjeev Jain will now assume the role of the COO. But top level changes are expected to be an ongoing affair at Wipro for sometime as Pallia is expected to bring in many more new faces at the top level. His main aim is to bring back growth at Wipro and to effectively deal with challenges. But will he be able to do that?
Undoubtedly Wipro is an iconic brand in IT services with a strong history and heritage. The challenges are bigger because of the external environment not at its attractive best. At the same time, it is a good opportunity for the new leader because one of the key aspects in this business is attrition rate that is not a stress point now and the internal environment will be supportive and welcoming of the change in leadership.
“Change management is likely to be easier if it’s done in a collaborative and cohesive way. The new CEO at Wipro is a seasoned veteran with over three decades of experience within the company. Companies go through extensive exercises for talent management and build a strong talent pipeline for the critical roles. Wipro seems to be doing this now for their CEO position. When talent moves internally, the transition is seamless. Such leaders have a good grasp of the company's nuances, and possess invaluable insights crucial for steering the ship during difficult times,” pointed out Aditya Narayan Mishra, MD and CEO, CIEL HR.
It is true that the internal promotion of seasoned executives from within the organisation, which Pallia wants to do, will help eliminate the need for elaborate onboarding processes, fostering continuity and instilling confidence among stakeholders. “By opting for internal talent over external candidates mitigates the risks associated with bringing in fresh faces from outside. It ensures a smoother transition and a quicker adaptation to the company's culture and values, thereby safeguarding the long-term interests and stability of the organisation,” added Mishra.
But one thing needs to be seen that as Wipro moves from Delaporte to its new CEO Pallia one of the great challenge is to make sure that the ship remains in balance and arrive at the destination. “Wipro is in good stead, particularly because, CEO Pallia has an extensive experience in driving the Americas business. While any strategic changeover can cause some hiccups, Wipro is a mature organisation that can transition to the new trajectory,” remarked Alok Shende of Mumbai-based Ascentius Consulting.
Wipro has been facing tough times for quite sometime now as there has been a dip in the net profit year-on-year in the fourth quarter of financial year 2023-24 (Q4FY24). There had also been departure of several senior executives in the organisation over the last one year. These were the possible reasons due to which Delpaorte left.