WIPRO ANNOUNCES 'NEW MEGA OPERATING' MODEL; BEST SO FAR FOR EMPLOYEES - REPORT 

IT major Wipro will follow a new operating model from January to bring the best of "Wipro closer to its customers". 

The company said that Wipro will replace the current structure of various strategic business units, service lines and geographies with four strategic market units (SMUs) and two global business lines which will be effective from January 1, 2021. 

Meanwhile in a regulatory filing, Wipro also stated that it is bringing in an operating model "marked by simplicity" to bring the company closer to its customers.

"The changes are effective from January 1, 2021. We will continue with our current operating model and external reporting for the quarter ended December 31, 2020," the filing read. However, the four Strategic Market Units will be Americas 1, Americas 2, Europe and Asia Pacific Middle East Africa (APMEA). While Americas 1 and Americas 2 will be organised by sectors, Europe and APMEA will be structured by countries. 

In Americas 1, it will include Healthcare & Medical Devices, Consumer Goods & Lifesciences, Retail, Transportation & Services, Communication, Media & Info services, Tech Products & Platforms and Latin America, Americas 2 will include Banking, Securities, Investment Banking & Insurance, Manufacturing, Hi-tech, Energy & Utilities and Canada.

Looking into Europe, it will include the following six regions: UK and Ireland, Switzerland, Germany, Benelux, Nordics and Southern Europe while APMEA will include 6 regions which are Australia & New Zealand, India, Middle East, South East Asia, Japan and Africa. The SMUs in Europe and APMEA will be responsible for all industry sectors in these regions.

Also in an email to employees, Wipro CEO Thierry Delaporte said the company's growth has been largely dependent on the US market, and noted that it is important that the company broad base its growth. "Effective January 1, 2021, we will replace the current structure of seven Strategic Business Units, Service Lines and nine geographies with four Strategic Market Units (SMUs) and two Global Business Lines (GBLs)...Besides ensuring adequate sector and domain focus in our go-to-market and execution, the new operating model will help drive growth in non-US markets," he said.

"I have no doubt that an operating model marked by fewer layers, empowered P&L owners, and clearly defined ownership of performance metrics, underpinned by a simpler and more customer-focused delivery model will help us meet our desired outcomes. I expect the new structure to bring the best of Wipro closer to customers," Delaporte added.