Wipro has started a 3 year exercise to become a leaner company. The company is in the process to slim its workflow down by about a third without resorting to mass layoffs, through deploying automation. The company is looking at being around 100,000-strong workforce in three years from 1,46,053 as on FY2014.
 
Commenting on the same, Sarabjit Kour Nangra, VP Research, IT, Angel Broking, said, ''At Wipro, automated tools are expected to make their presence felt significantly in two departments-monitoring of computer infrastructure and administration, which together employ 48,000 people 30% of workforce. The monitoring department makes up about one-fifth of Wipro's workforce now (30,000), and it is seen making up around 5% (5,000) of the company's headcount in three years.

Those engaged in administrative tasks will number 7,000 at the end of three years from 20,000 at present. Wipro, has an attrition rate of 16-17%, translating into about 23,000 employees leaving the company each year. So, the company will be in a position to become lean without having to issue pink slips as much of its current attrition is not in important areas of operations. Hence, the company can replace these people by automating a lot of processes.
 
We believe, this move will further strengthen the operating matrix of the company and will improve its overall profitability in the medium to long term. At CMP, the stock remains a buy with a target price of Rs 697.''

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