Wipro's acquisition of US firm paying off BIG TIME!!!
Hello fellow bloggers,
well DR.Sidd is back with another blog. This time i would like to talk about the Booming IT industry in India and about a company that is a big player in the industry,WIPRO Technologies (for more info log on to www.wipro.com). wipro in past 4 years has been on an acquisition spree and in this blog i would like to talk about one of its latest acquisition that are paying rich dividends. Wipro's acquisition of American Management System's global energy practice during 2002 has started to pay off. Through this acquisition Wipro has been able to get an influential player in the global energy market, Shell Corp. As its client through the consulting expertise of American Management System. Shell plans to step up its IT requirements in the near future and along with IBM,Wipro will be working with Shell and the deal is supposedly worth around $3billion. Currently through expert advice from the AMS,Wipro is able to bring in revenues of around $10-12 million a quarter from this deal. Wipro acquired the AMS consulting capabilities in the energy practice for $26 million
this acquisition shows us that Wipro is trying to change its Core strategy, which is a Business concept innovation according to Gary Hamel, by acquisition and trying to get more new clients. They are trying to initialize a new Product/Market scope for its services through its acquisition spree. By acquiring AMS, Wipro has added Strategic assets to its strategic resources of giving expert management consults to its clients. These acquisitions can also increase the Scale and Scope of doing Business for Wipro which increases its Strategic economies and also helps it to increase its operating agility which according to Hamel is the strategic flexibility shown by Wipro.
according to the chief strategy officer at Wipro, Sudip Nandy, he said, "AMS' energy practice acquisition is a key element which will drive Wipro's growth as we scale up. In two years, Shell is expected to be the largest client for us and the consulting capability required for this scaling up is immense. This acquisition is certainly paying us off pretty well in respect to Shell as well as to scale up the energy practice."
their acquisition spree does not stop here though, Wipro aquired NerveWire for $18.7 million in 2003 and is also expected to play a critical role, as Wipro, along with a host of global peers, competes for the humongous $15 billion deal that is brewing at the General Motors stable.
so overall Wipro is using the acquisition strategy to acquire niche companies that will help them bring in international clients that will add to their scope and scale of doing effective and efficient IT Solutions.
pleasant Reading,
Siddharth Sudhakar
Website: http://www.rediff.com/money/2005/dec/21wipro.htm
well DR.Sidd is back with another blog. This time i would like to talk about the Booming IT industry in India and about a company that is a big player in the industry,WIPRO Technologies (for more info log on to www.wipro.com). wipro in past 4 years has been on an acquisition spree and in this blog i would like to talk about one of its latest acquisition that are paying rich dividends. Wipro's acquisition of American Management System's global energy practice during 2002 has started to pay off. Through this acquisition Wipro has been able to get an influential player in the global energy market, Shell Corp. As its client through the consulting expertise of American Management System. Shell plans to step up its IT requirements in the near future and along with IBM,Wipro will be working with Shell and the deal is supposedly worth around $3billion. Currently through expert advice from the AMS,Wipro is able to bring in revenues of around $10-12 million a quarter from this deal. Wipro acquired the AMS consulting capabilities in the energy practice for $26 million
this acquisition shows us that Wipro is trying to change its Core strategy, which is a Business concept innovation according to Gary Hamel, by acquisition and trying to get more new clients. They are trying to initialize a new Product/Market scope for its services through its acquisition spree. By acquiring AMS, Wipro has added Strategic assets to its strategic resources of giving expert management consults to its clients. These acquisitions can also increase the Scale and Scope of doing Business for Wipro which increases its Strategic economies and also helps it to increase its operating agility which according to Hamel is the strategic flexibility shown by Wipro.
according to the chief strategy officer at Wipro, Sudip Nandy, he said, "AMS' energy practice acquisition is a key element which will drive Wipro's growth as we scale up. In two years, Shell is expected to be the largest client for us and the consulting capability required for this scaling up is immense. This acquisition is certainly paying us off pretty well in respect to Shell as well as to scale up the energy practice."
their acquisition spree does not stop here though, Wipro aquired NerveWire for $18.7 million in 2003 and is also expected to play a critical role, as Wipro, along with a host of global peers, competes for the humongous $15 billion deal that is brewing at the General Motors stable.
so overall Wipro is using the acquisition strategy to acquire niche companies that will help them bring in international clients that will add to their scope and scale of doing effective and efficient IT Solutions.
pleasant Reading,
Siddharth Sudhakar
Website: http://www.rediff.com/money/2005/dec/21wipro.htm
posted by Siddharth Sudhakar at 11:12 PM
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