Wipro Needs Further Capacity Expansion to Catch Up With IT Services Leaders

Wipro provides a variety of IT services, including consulting, business process outsourcing, and customized application development. Similar to other Indian IT consultants, Wipro’s business model benefits from the arbitrage of salary differences between India and developed markets. However, many of Wipro’s India-based employees are with its business process outsourcing unit, where they handle repetitive workflows in customer support or administration. Since BPO work is usually less value-additive for customers than consulting projects, the labor arbitrage effect Wipro enjoys is also weaker than that of its peers, Tata Consultancy and Infosys.