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Wipro joint CEOs quit
By siliconindia
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Saturday, 22 January 2011, 03:20 IST |
1 Comments
Bangalore: In a dramatic revelation, Wipro Technologies has announced the quitting of the CEO duo, Girish Paranjpe and Suresh Waswani after announcing the Q3 results. Azim Premji states that the current scenario demands the need for a simpler structure. Hence the appointment of T.K.Kurien who was the head of BPO business to head the Technology division and be the Executive Director of the company.
Commenting on the appointment of Kurien, Azim Premji, Chairman Wipro Limited said, "The Joint CEO structure was one of the key factors that successfully helped us navigate the worst economic crisis of our times. With the change in environment, there is a need for a simpler organization structure. Over the last 10 years, Kurien has been instrumental in building and scaling many of our businesses successfully. His track record with customers, passion for excellence coupled with strategic thinking and rigor in execution makes him uniquely positioned to lead Wipro's IT business through the next phase of growth."
The sudden and unexpected change in top leadership which leaves the investors shocking comes at a time when the company reported profits that lagged behind competitors Infosys and Tata Consultancy Services (TCS). Wipro has reported a 10 percent increase in the net profit on year-on-year basis to USD 294 million for the quarter ended December 31, 2010. Meanwhile, total revenue during the quarter rose 12 percent year-on-year to USD 1.75 billion.Of late, Wipro has been facing severe competition from Cognizant and analysts have been predicting of Wipro being pushed to fourth position with Cognizant moving to the third position.
The duo will ensure smooth transition to Kurien and will be on board till the next quarter end on March 31st, but Kurien is officially expected to takeover as CEO on Feb 1, 2011.
Whether it is to ensure the growth path of Wipro or to clear the way for his son Rishad Premji to take the role, is something we can wait and watch.
