Wipro business process management unit close to hitting 2020 target of $1 billion

BENGALURU: Wipro’s business process management services business is generating close to $1 billion a year in revenue, ahead of the company’s 2020 target, and has shown double-digit growth in the last two years, the head of that unit told ET.

The Bengaluru-headquartered IT services company had put in place a strategy to grow its operations management business in 2015. The target set was reaching $1 billion in revenue by 2020, 40% of which was expected to come from business-process-as-a-service (BPaaS). Wipro expects to beat that target, Nagendra Bandaru, senior vice-president and global head, business process services (BPS), Wipro, said.

“About 40% of our revenue already comes from BPaaS and revenue is almost $1 billion. We are coming in ahead of time,” Bandaru said. He said the company had a long list of changes it had made in the unit, including investing in technology and improving execution.

In the latest quarter, the BPS business pulled in over $243 million in revenue, according to the fact sheet on Wipro’s investor relations site. In the second quarter of FY16, the unit pulled in $179 million in revenue. Bandaru said the company was waiting to show progress on the strategy implementation before talking about it.

Wipro CEO Abidali Neemuchwala, who used to head TCS’ nearly $2 billion BPS unit, was key in crafting the strategy, Bandaru said.

The growth is being driven by the company’s acquisitions. In 2015, Wipro acquired HealthPlan Services, which offers BPaaS provider to the healthcare industry for $460 million. It has also invested in microservices such as Way2Go in the travel space. “Inorganic will always support organic growth. We are constantly looking at making investments in intellectual property,” Bandaru said.

Wipro Technologies (Wipro Ltd)