Skip to main contentSkip to solution

Wipro Technologies, one of India's largest IT solutions providers, restructured its organization in its bid to compete globally with giants like IBM and Accenture. This restructuring aimed to improve customer orientation and operational efficiency, critical to Wipro's ambition of becoming a global technology leader.

The company transitioned from a centralized management system to a decentralized structure, dividing its operations into several self-sufficient subsidiaries focused on specific product lines, such as telecommunications, engineering, and financial services. Each subsidiary operates independently, managing its personnel, accounting, and administrative functions. This decentralization empowered business leaders to take greater responsibility for growth and eliminated an entire layer of executives to streamline operations.

Azim Premji, Wipro's then-chairman, emphasized the importance of this shift, noting that it gave leaders more autonomy and enhanced decision-making at the operational level. This organizational change helped Wipro achieve specialization and allowed better alignment of resources with customer needs.

Despite the advantages of decentralization, including flexibility, faster decision-making, and enhanced accountability, it also posed challenges, such as coordination among subsidiaries and maintaining consistency in strategic objectives. Wipro addressed these challenges by clearly defining roles and responsibilities across its new structure.

What was the primary objective behind Wipro's organizational restructuring?

Solution

✅ Correct Option: 2

Option 1 -> While cost reduction may be a secondary benefit, it was not the primary driver behind Wipro's organizational restructuring.

Option 2 -> Wipro restructured to become more customer-centric and enhance its ability to compete in global markets by better aligning its organization with customer needs.

Option 3 -> Increasing headcount was not an objective of the restructuring; the focus was on organizational effectiveness rather than employee numbers.

Option 4 -> The restructuring aimed at global expansion and competitiveness, not restricting focus to local markets.


Hence, Option 2: To improve customer orientation and global competitiveness -> Wipro's organizational restructuring was strategically designed to transform the company into a more customer-focused organization while strengthening its position in the global competitive landscape, enabling better service delivery and market responsiveness -> correct

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question