Wipro Technologies Europe (B) – Comprehensive Study Notes

Case Context & Authorship

• Case: “Wipro Technologies Europe (B)” – Chapter 14, Motivation in Multinational Companies (Darden / Stockholm School of Economics collaboration).
• Authors: Heather Wishik (Batten Fellow), Gerry Yemen, Assoc. Prof. Martin N. Davidson.
• Copyright: © 2002, University of Virginia Darden School Foundation (Rev. 2/03).
• Purpose: Designed for class discussion; not intended as an example of “best” or “worst” practice.

Strategic Mandate

• CEO mandate to Sudip Nandy (July 2001): Grow Wipro Technologies Europe (WTE) to 42\% of total Wipro IT revenues.
• Nandy’s premise: U.S. success model cannot be copy-pasted to Europe; requires a distinct strategy.

Leadership Philosophy & Guiding Ideas

• “Change is a hands-and-knees trip” – expect hard, meticulous implementation work.
• Nandy given “a whole lot of rope” to pursue contra strategies to earlier Wipro playbook.
• Core talent attributes sought:
  • Grasp of the abstract & tolerance for ambiguity.
  • Patience to grow with a still-forming unit.
  • Indian-typical traits (per Nandy): resilience, calmness, comfort with uncertainty.
• Quote: “Indians do very well elsewhere because they deal better with uncertainty.”

Operational / Delivery Model

• Sales & delivery heavily team-centric.
• Sequence:
  • Solo sales lead opens account →
  • “Core team” (1–3 members, Europe + India mix) engages →
  • Contract negotiation →
  • Project management.
• On-site/off-site target: \frac{30}{70} (30 % at client site, 70 % offshore).
  • Within the 30\% a local employee must be the leader.
• Sales force described as unusually technical – handle “first, second, third-level” calls w/o specialist help; consultants join only at deep-tech layer.

Recruitment & Selection

• First hires focused on locals who can “force us to think differently.”
• Sought mix of blatant/subtle cultural styles, mirroring European diversity.
• Early staff balance goal: 50 % European / 50 % Indian (mid-case status = 20 % / 80 %).

Induction & Continuous Immersion

• Mandatory India immersion: All European hires travel to Bangalore at start, then every 3–4 months to “re-charge contacts” and sense Wipro’s “factory.”
• Rationale:
  • Strength of firm = India-based “factory.”
  • New hires must grasp Wipro’s value proposition before tailoring it locally.

Early-Review & Feedback System

• 3-month “early review” for every new hire.
  • Dual purpose: Performance & company-feedback.
  • Employees explicitly invited to criticize processes for European fit.
• Emphasis on avoiding “old boys’ network” – weekly contact reports & rapid sales-data automation for transparency.
• Building a “culture of close monitoring & review.”
  • Quick-win philosophy: Secure first order fast, experience hurdles, learn delivery realities.

Contract Qualification Tightening

• Clearer definition of desirable contract profiles.
• Goal: Prevent wasted pursuit of deals later vetoed by vertical heads.

Six Sigma Expansion

• Wipro already Six Sigma pioneer in software (defect reduction).
• Nandy’s experiment: Apply Six Sigma to sales, marketing & relationship management.
• Expected benefits:
  • Forces cross-functional teamwork via shared monetary / cycle-time metrics.
  • Cultural shift: From strong individual coders to process discipline.
  • High voluntary uptake – staff attend Saturday sessions; half-day modules kickoff every new project.

Premji’s Six “Leadership Laws” (Exhibit 1)

1. Vision – like a lighthouse, slightly beyond reach yet attainable.
2. Values – set transparent boundaries.
3. Energy – work hard and smart, long and intensely.
4. Confidence – own mistakes, share credit.
5. Innovation – ideas have limited shelf life; pursue continuous renewal.
6. Teambuilding – attract best minds & create ownership (emotional + stock).

Building Cultural Competence (India-based Staff)

• Prerequisite cross-cultural training before any first-time travel.
  • 1–2 day country-specific modules (business etiquette, norms).
  • Content co-created from returning expatriate feedback (“wish we’d had this earlier”).
• No training ⇒ no airline ticket – strict policy.
• Language programs: Basics of German, French; distinctions between British vs U.S. English.

Educating the Client

• New tactic: Embed client cross-cultural learning as a paid contractual line item.
  • Example: Scottish Parliament IS contract – included American consultant expert on Indian business culture.
• Precedent: U.S. customer that hosted weekly “What is India?” talks for its staff.
• Goal: Two-way understanding – customers learn hierarchy nuances, confrontation style, social/work balance, etc.

Illustrative Cultural Contrasts

• Hierarchy: “Boss doesn’t call all the shots” in India; decisions often consensus-driven.
• Confrontation: Talked about but personally uncomfortable for many Indians.
• Work–social blending:
  • France – 3-hour client lunches acceptable.
  • Germany – rapid move to business matters.
• Bangalore immersion shock: Marathon presentation days – dubbed “death through a thousand PowerPoints” (10 presentations/day, 08:00-late evening).
  • Lesson: Need balance of content vs relationship time.

First-Year Metrics & Team Composition

• Revenue growth: 120\text{–}130\%.
• Headcount: 19 (11 Indians + 8 Europeans).
  • Europeans: 2 French, 1 Dutch-German (Germany-based), 1 Swiss-German (Switzerland), 2 English, 1 Irish.
  • Composition ratio: 20\% European / 80\% Indian (mid-goal).
• Forthcoming hiring priorities: Account-relationship roles for Sweden, Finland, Italy – must be native-fluent for nuance in “want vs need.”

Wipro Corporate Strategy Elements (Exhibit 2)

• Business strategies:
  • Expand & leverage capabilities in building.
  • Cost leadership + quality service delivery.
  • Customer capital development.
• Leadership capabilities program.
• Global expansion agenda.
• Growth via acquisition.

Ethical, Practical & Philosophical Implications

• Balancing global process discipline (Six Sigma) with local relationship nuances.
• Equity in information: Automation vs “old boys’ network.”
• Cultural imperialism risk mitigated by reciprocal learning (clients & employees).
• Employee well-being: Potential burnout from intensive training schedules (“thousand PowerPoints”).

Connections to Broader Course Themes

• Motivation in MNCs: Aligning individual aspiration (quick wins, career growth) with organizational stretch (42\% revenue share).
• Staffing & Control: Use of expatriation and localization; early feedback loops; process metrics as motivational/disciplinary devices.
• Cross-Cultural Management: Mandatory training, language exposure, client co-education – echoes Hofstede/Hall frameworks.

Discussion Questions Embedded in Case

• Hofstede alignment: Are sought attributes hard to find in India’s cultural profile?
• Compatibility of initiatives with Indian culture.
• Motivating talent in markets with low loyalty & high poaching.
• Forecast: Will Wipro’s measures succeed in Europe?

Key Numerical References

• Target European share: 42\%.
• On-site/off-site split: 30:70.
• Local/Indian target workforce mix: 50\%/50\% (current 20\%/80\%).
• Revenue growth Y1: 120\text{–}130\%.
• Headcount Y1: 19.

Mnemonic Summary ("6 C’s")

1. Context – Europe ≠ USA.
2. Core team model – 30/70 locality mix.
3. Capabilities – Six Sigma beyond coding.
4. Culture – Train both sides (staff + client).
5. Contracts – Tight qualification & transparency.
6. Continuity – Rapid first win → feedback → scale.