Wipro has been trailing its peers on the performance front with subdued report card and weak guidance and saw a spate of senior-level departures including CFO Jatin Dalal and chief growth officer Stephanie Trautman last year
Thierry Delaporte. Pic/C
Indian IT major Wipro on Saturday announced the resignation of Thierry Delaporte as CEO and named Srinivas Pallia as the new Chief Executive Officer of the company, effective immediately.
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The announcement comes days before the Bengaluru-headquartered company is scheduled to announce its Q4 and full-year earnings for 2023-24 on April 19. Wipro has been trailing its peers on the performance front with subdued report card and weak guidance and saw a spate of senior-level departures including CFO Jatin Dalal and chief growth officer Stephanie Trautman last year.
According to a Wipro release, Pallia brings to the CEO role extensive institutional and industry knowledge, as well as a strong track record of leadership through some of the most significant technological shifts the industry has seen.
In a BSE filing on Saturday, Wipro said its Board noted the resignation of Delaporte with effect from April 6, 2024, and went on to add that he will be relieved from the employment of the company with effect from the close of business hours on May 31, 2024.
"At their meeting held on April 6, 2024...pursuant to the recommendation of the Nomination and Remuneration Committee, the Board of Directors has approved the appointment of Srinivas Pallia as the Chief Executive Officer and Managing Director of the company with effect from April 7, 2024, for a period of five years, subject to the approval of shareholders and the Central Government as may be applicable," Wipro informed in an exchange filing.
Before taking over the reins of Wipro as its CEO in July 2020, Delaporte worked with Capgemini. Delaporte's annual salary of over Rs 80 crore at Wipro had made headlines last year.
The USD 11.2 billion global information technology, consulting and business process services company competes in the global outsourcing market with Tata Consultancy Services, Infosys, HCL Technologies, Cognizant and other international and domestic IT players.
In a release announcing the top-level changes, Wipro said the appointment of Pallia (a Wipro veteran) as the Chief Executive Officer and Managing Director, is "effective immediately" and that he will be based in New Jersey and report to Chairman Rishad Premji. "He succeeds Thierry Delaporte, who, after spearheading a significant transformation at Wipro for the last four years, is stepping down to pursue passions outside the workplace," said the company which has 240,000 employees and business partners across 65 countries.
In his resignation letter to the Board, Delaporte wrote: "I am writing to resign from my position as CEO and MD of Wipro Ltd, effective April 6, 2024. It has been an incredible honour, and I am grateful for the opportunity to have played a role in the growth and success of Wipro".
"During my tenure as CEO and MD, we have witnessed a significant transformation within the company that has not only driven financial growth but has also positively impacted our associates, clients, and shareholders," Delaporte said wishing the company continued success and prosperity in the future.
Pallia has been with Wipro for over three decades and most recently served as the CEO for 'Americas 1' region, which is Wipro's biggest and fastest growing strategic market. In this role, he oversaw diverse industry sectors, established their vision, and implemented growth strategies, resulting in increased market shares within these sectors, according to the company.
Pallia is a member of the Wipro Executive Board. "Srini is an ideal leader to lead Wipro at this pivotal moment for our company and industry. Over the past four years, Wipro has undergone a major transformation under the most challenging external conditions. Srini has been an integral part of this journey," Rishad Premji, Chairman of Wipro Ltd said.
Premji said Pallia's client-centric approach, growth mindset, strong execution focus, and his commitment to Wipro's values, make him the "perfect fit" as the company enters the "next chapter of growth and profitability".
"I'd like to express my gratitude to Thierry for his leadership at Wipro. The changes he implemented have better positioned us for the future. We have optimised our structure, enhanced our leadership, prioritised partnerships, and improved our overall efficiency. This provides a strong foundation for Srini to effectively build upon," Premji said.
Premji noted that Delaporte will continue until the end of May, working closely with Srini and him to ensure a smooth transition. Pallia joined Wipro in 1992 and has held many leadership positions, including President of Wipro's Consumer Business Unit and Global head of Business Application Services.
Commenting on his appointment, Pallia described Wipro as one of those rare companies that combine profit with purpose, and said he is "truly honoured to have been chosen to lead this iconic institution". "I am excited to build on the strong foundation established by Thierry and lead Wipro on its next growth trajectory. I have built my entire career at Wipro, and I have a deep appreciation of our 78-year history and our incredible team of more than 240,000 associates," Pallia said.
He said Wipro has the right strategy, and tremendous people and capabilities throughout the organisation, and added he is "excited about the opportunities for future growth." Pallia holds a bachelor's degree in engineering, and a master's in management studies from the Indian Institute of Science, Bangalore. He graduated from Harvard Business School's Leading Global Businesses executive program, and the Advanced Leadership Program at McGill Executive Institute.
Delaporte said he is grateful to Premji and the Board for the opportunity to lead Wipro through a period of significant transformation.
Wipro had posted a nearly 12 per cent decline in consolidated net profit at Rs 2,694.2 crore in the third quarter ended December 2023. Rival Infosys posted a 7.3 per cent decline in net profit, while Tata Consultancy Services and HCL reported an 8.2 per cent and 6.2 per cent increase in consolidated profit in the December 2023 quarter.
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