November 15, 2011: Wipro Technologies, one of India’s leading IT service provider is planning to set up a strategic delivery centre in South Africa. This move is expected to create 1000 new job openings within the next 36 months.
Wipro currently employs over 130,000 employees’ world wide and has annual revenue of over $7 billion. Being a key player in the Business Process Outsourcing industry, Wipro is listed both in the United States and in India.
According to company sources South Africa is a market with high potential for growth and that they are introduced a special structure that will enable them to improve their global presence and business growth in the region. Wipro considers South Africa as an entryway to other nations in Europe, Middle East and Africa.
Different African countries are major centers of opportunity for IT service providers. It is estimated that the IT spending in South Africa will bounce from US$10.7 billion in 2011 to US$17.4 billion in 2015 at a Compound Annual Growth Rate (CAGR) of 13 per cent. In an attempt to improve growth in the Information Technology industry, the government of South Africa has launched various initiatives so that their position in the global economy will be improved. Wipro has investments in oil and gas, telecom and financial services industries in South Africa.
According to Manoj Punja, senior vice president, global sales and operations, the IT spending in South Africa will form 8.6 per cent of the Gross domestic product. So this makes South Africa secure a position in the upper middle level among the nations spending on IT. He said that the South Africa has become a favorite location for Business process outsourcing and Information technology service providers. This is due to the advantages that South Africa offers such as time zone advantage, language, and the culture.
Punja added that Wipro will start campus recruitment in order to meet the requirement that will arise. The recruits will be put to training and skill development, and will also be subjected to competency evaluation test after which they will be selected for projects.
In South Africa, Wipro operates an office in Johannesburg and has 500 employees working on both onsite and offsite projects. Wipro plans to expand is operations in financial and telecommunication sectors so that it can diversify its client portfolio.
Wipro was formed as a firm producing vegetable oil in 1945, which later diversified into IT, consumer electronics, FMCG etc.