SWOT Analysis of Wipro

Info: 1137 words (5 pages) SWOT Examples
Published: 31 Jul 2019

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Part of: SWOT Analysis

UPDATED: A summary as of 2025 for a SWOT Analysis of Wipro

Originally written toward the end of the 2010s, this SWOT Analysis of Wipro merits a forward look and update.

Ergo, Wipro Technologies stands as a global leader in IT services, consulting, and business process outsourcing, with a strong brand reputation and diversified service portfolio. Over the last five years, Wipro has sharpened its focus on digital transformation, cloud migration, cybersecurity, and artificial intelligence, investing heavily in R&D and strategic partnerships with tech giants like Microsoft, AWS, and Google Cloud. Its global delivery model, presence in over 60 countries, and robust sustainability initiatives further strengthen its competitive position.

However, Wipro continues to face several weaknesses as we approach the second quarter of the 21st century. The company remains highly dependent on North American and European markets, making it vulnerable to regional economic and regulatory changes. Profit margins lag behind larger competitors like TCS and Infosys, partly due to pricing pressures and high operational costs. Wipro has also been slower to achieve leadership in fast-growing domains such as AI and cloud compared to rivals. High employee attrition rates, operational complexity, and bureaucratic decision-making processes further challenge its agility and efficiency.

Opportunities and Threats to Wipro Approaching 2030 and Beyond

Opportunities abound in emerging technologies, with global digital transformation and cloud markets expected to grow rapidly through 2025. Wipro can expand its offerings in AI, automation, and cybersecurity, capitalise on government digital initiatives in India, and target SMEs and untapped markets in Asia-Pacific, Latin America, and Africa. Strategic acquisitions of niche technology firms can enhance capabilities and accelerate growth.

Threats include intense competition from global and regional IT players, ongoing economic uncertainty, and fluctuating client demand. Regulatory changes, data protection laws, and currency fluctuations add to operational risks. Talent shortages in emerging tech domains and rising attrition rates threaten service quality and project continuity. Rapid technological advancements and the need for constant innovation require Wipro to remain agile, invest in upskilling, and adapt quickly to market trends.

In summary, Wipro’s future success depends on deepening expertise in digital and emerging technologies, expanding geographically, enhancing operational efficiency, and retaining top talent while navigating a highly competitive and fast-evolving global landscape.

Strengths

Continuous innovation

Wipro Technologies has an efficient research and development facility that meets the global standards. In this regard, it continues to create new goods and services that attract the attention of new customers as well as shareholders in the market. The company has been able to achieve great milestones in product development. It has a vast customer base.

Having a large customer base across the world gives Wipro an upper hand to increase its revenue due to its strong brand image (Wipro Ltd., 2017). For example, over 90% of its revenue comes from repeat business (Sharma, 2011). Many businesses are in need of its software solutions, an implication that there is ever increasing demand for its services or products.

Skilled employees

Wipro’s HR practices make it easier for them to retain employees. For example, the recent changes in HR policies are suitable and sustainable for employees. The overall attrition rate has significantly improved over the last quarter. Economies of scale: the company also positions itself in the IT market as a low-cost provider. This strength has made the company to achieve a lot in terms of increased customer base. Economies of scale is allowed to clients who buy services or products in large scale.

Customer satisfaction

This is made possible through quality product and delivery capabilities. Wipro Technologies gives quality a top most priority because it is committed to ensuring customer satisfaction (Sharma, 2011). As a result, the clients have registered their satisfaction with the company. Eco-friendly products: innovation is the order of the day at Wipro Technologies, and it has enabled the company to gain value propositions (Wipro Ltd., 2017). It advocates for reusable computer peripherals as well as less toxic material used in its production process.

Weaknesses

Overdependence of mature markets

This poses a risk to the company because the domestic market is huge, yet it remains to be underdeveloped. Secondly, the company shies away from making a business investment (Sharma, 2011). For example, it does not encourage joint investment with the customer. Instead, it prefers executing the business given out by the client.

Strong concentration on the process

Wipro Company focusses on the process and not the people (Wipro Ltd., 2017). As a result, delays have been common especially during decision-making process by the top management.

Precarious top management

Frequent changes in top management is one area that the company is doing badly (Wipro Ltd., 2016). For example, the managing director has to abide by Premji’s vision, and this gives rise to conflict in top management. Making changes in the top management disorients the operations of the middle and upper-level management.

SWOT Analysis of Wipro Technologies, with updates for a 2025 audience about SWOT factors affecting the brand

Opportunities

Consultancy area

Wipro Consultancy is believed to be one of the best in the IT industry. The company is therefore in a position to achieve more especially with its large customer base (Wipro Ltd., 2017).

Emerging technology

Since it boasts of skilled employees, the latter can make good use of technologies to create new products or services that satisfy the varied needs of the consumers (Sharma, 2011).

Huge global and potential domestic market

As a global company, Wipro can take advantage of global opportunities to increase its market share (Wipro Ltd., 2017). On the other hand, it has the capacity to capture to domestic Indian IT industry, another opportunity to expand.

Threats

The high cost of human capital

In short, there is high attrition rate in the IT industry. Ergo, recruiting people can be very costly. This can affect the profitability of the firm (Wipro Ltd., 2017). Stiff competition. The level of competition in the IT market is very high. As a result, firms will always compete for the buyers. It requires a unique differentiation strategy in order to penetrate the market (Sharma, 2011).

Exchange rate

Due to economic changes, exchange rates are affected either. For example, high exchange rates impact negatively on the firm’s profits and vice versa.

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