Wipro Technologies bullish on Automation and Artificial Intelligence
Wipro Technologies plans to save around $300 million (about Rs.1900 crore) this financial year by relying on Automation and Artificial Intelligence at work like Software Automation Testing, by reducing the number of employees engaged in the projects. These steps would provide India’s third largest software firm to save at least 20% of it $1.4 Billion net income after it managed to save $200 million in 2014-15 by freeing as many as 158,000 engineers from manual and repetitive work spread across in more than 18000 projects involved for its clients. This year the company further targets to save $300 million.
Since, past three years Wipro has shown positive results by implementing Automation and Artificial Intelligence in the projects to make it the sole software company to do so and helped the company to gain more revenues with work getting done efficiently. The company has set to pair its workforce by about a third without adopting mass layoffs likewise other Global Giants i.e., IBM and Microsoft has announced so far. Wipro intends to replace the so called pyramid structure that entailed people engaged in more basic work, with an alternative way under which the experienced engineers will be engaged in value-added work. This step will be the first of kind in Company’s efforts to reorganize since its inception in 1981.
Wipro is bullish on Test Automation that reduces costs of operations considerably. Employee deployment will come down by 35% for the same scope of work. It’ll help the company to reduce the processing time by over 90% with 70% deployment engaged by fewer engineers to execute it by using hyper automation techniques. The company has also build a dedicative team consisting of 250 people that primarily focused on next generation technologies like Artificial Intelligence, with the firm already started to use them in few of its service lines namely infrastructural management.
Wipro is ambitious in achieving industry leading operating margins in dealing with its rival Infosys, persuades a target of achieving 4% more profitable percentage to at least 30% by the year 2020. Wipro ended the financial year with an operating margin of 22.2%, whilst its rival Infosys reported an operating margin of 25.9%. Wipro aims to increase software exports to the US, which currently stood at 60% of its revenue due to strong dollar. However, depreciation of rupee has set back the company on operating costs left with no other option of relying on smart technologies.
Critics say that relying solely on newer technologies would merely show positive results and furthermore, will tarnish the operating income in a big way. But, the company is pinning hopes that it may turn out to be success in terms of turnaround time of projects and help in retaining the existing as well as gaining the prospective clients.
Learn more about Plant Automation: http://www.plantautomation-technology.com/
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