Wipro to sell French unit, as employee protests rise
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Wipro to sell French unit, as employee protests rise
Bangalore: Due to the rising protests by employees against shutting down of its facility at Sophia Antipolis, France, Wipro plans to explore options to sell the development centre. The issue became a major controversy with the involvement of the local French government officials. Wipro had initiated talks to close down the centre that it acquired from Newlogic because of poor demand. The centre employs around 60 people. "As part of the ongoing process, we will continue to look favorably on any proposal that we may get from interested parties willing to continue part of totality of the activities in the Sophia Antipolis centre," Pramod Idiculla, General Manager (Strategy) at Wipro, said to The Economic Times. The Indian IT firm acquired privately-held Newlogic in 2005 for around $56 million. Many consultants feel that Wipro may find it hard to sell the facility in this environment. "I am not sure, if the Newlogic unit will find any buyers. A safer bet would be to wait for the demand to improve and then take a call," said a Semiconductor Design Consultant based in Germany. Idiculla said the company was still in the process of consultation with employee representatives, if they don't find any buyers for the facility. "A final decision will be taken after the consultation," he added. The company said it is also open to any proposal from the employees about creation of businesses, which may provide solutions for employees. "We have reiterated to the French government our commitment to help reduce the impact of any potential redundancies that may arise as a part of this process and our commitment to try and identify opportunities for redeployment for employees," added Idiculla. Wipro's experience may have implications for other Indian IT firms, which are targeting higher business and expansion, in Continental Europe. Continental Europe is a tough market with majority of organizations preferring local IT vendors. "Wipro's decision doesn't come as a surprise. Leading European firms are shifting more of their design work to lower-cost offshore locations, particularly India and specifically Bangalore," said Peter Schumacher, President and Chief Executive of German management consultant firm Value Leadership Group.

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