Sramana Mitra: What is the delivery model? I’m very interested in understanding more about Wipro’s rural BPO strategy.
Manish Dugar: Sure. If we are to address the ever increasing appetite of the clients in terms of hospital, and if we are to ensure that we are tapping the talent at the right place, being only in these tier one, tier two cities will be a challenge. At the same time, we continue to get enough supply of resources, and there are enough graduates passing out, enough number of schools and colleges. But with the size becoming larger and larger and with the need to be closer to where these employee bases are available, what is becoming imperative is to look at models which are delivering from near where the source is. Hence, the need to also look at tier two, tier three, but the next step or the real paradigm shift is when we go to a rural a center. >>>
Sramana Mitra: I think your point about business process outsourcing to business functional sourcing is well taken, but you have mentioned different components of that. I would like to understand some of the trends that you see from your perspective. You talked about labor arbitrage, which was obviously the genesis of the industry. Wipro has been at this for many, many years, several decades already. What are the trends that you are observing in the labor arbitrage area right now? How much of your workforce, for instance, is in India, and what are the dynamics of the Indian labor arbitrage business? >>>
From its humble beginnings as a consumer products business in 1945, Wipro has become a global company that serves customers in IT, BPO and R&D. Although its headquarters remain in Bangalore, India, Wipro has expanded its service horizons to include, North America, Latin America, Europe and Asia. >>>
Sramana Mitra: So, it is your IP, the innovation that you are doing is your IP?
Ravi Pandit: Significantly our IP. In some other cases it could be a joint IP. What that means is that we are able to take it to any customer that we want, but the other person, the automotive OEM will be able to use it in an unlimited manner in his own production. >>>
Sramana Mitra: And also entrepreneurs who play into that system; very interesting. So, are you seeing interesting developments in the area of location based services? We are seeing lots of location based services as they plug into the mobile phone and the GPS, the confluence of GPS and mobile phone and all sorts of infotainments. >>>
Sramana Mitra: Who is your first customer through which you learned the business?
Ravi Pandit: On the power train side, we started working with companies that are our partners, and then we bought a company in Bangalore called CJ Smith. CJ Smith has been a focused player on embedded software largely outside of the power train area. Between these two, we have been able to grow our business quite well. >>>
Sramana Mitra: Where are most of your customers, and where are most of your operation? Would you talk a bit about customers and how your company is organized geographically? >>>
About KPIT Cummins
A public company listed on the BSE and NSE, KPIT Cummins helps clients to develop domain-based intensive technology solutions for manufacturing corporations with special focus on automotive, transportation & manufacturing, energy & utilities, and defense & government.
About Ravi Pandit
After studying at MIT’s Sloan School of Management, Ravi Pandit began his career as an accountant. He has spent more than three decades in information technology and, with his team, has built KPIT Cummins.
Sramana Mitra: Hi, Ravi, and welcome to the Outsourcing series. If you would, please set some context for our readers and me about KPIT Cummins. We don’t know that much about the company, so we need to understand first what you do, what your business is, where you are, what size you are, the scale of your operations, and so on. >>>