JOIN USFrankfurt to be Wipro's continental Europe HQ
India’s third largest information technology services company Wipro is all set to make Frankfurt the headquarters for its continental Europe business operations.
Sources privy to the development revealed to Deccan Herald that the Frankfurt facility has 600 IT employees and will recruit around 2,000 people by the end of fiscal 2016.
In Germany, Wipro has IT development centres in Munich, Meerbusch, Nuremberg and sales offices in Frankfurt, Munich, Cologne and Meerbusch. When contacted, the company said it is into its “silent period”.
The expansion in continental Europe will help enhance market share and grow the business exponentially over the coming years. Wipro expects to see significant traction in the manufacturing, retail, automotive, telecom, healthcare, banking and energy and utilities sectors in these region.
Wipro is localising increasingly in Europe by hiring 50 per cent of its talent from the continental region. In 2013, the Bengaluru-based company had announced that the company will drive marketing and brand investments in these geographies, and explore potential inorganic growth opportunities.
In the beginning of fiscal 2015, Wipro CEO T K Kurien had declared that continental Europe would be its focus market along with America, Britain and India. Wipro appointed Ulrich Meister as head of the European business in 2013 and gave him the mandate to chart out a strategy for the region.
According to Prabhudas Lilladher Pvt Ltd Senior Research Analyst Shashi Bhusan, Wipro’s decision to make Frankfurt its continental European headquarters will help tap new growth opportunities in the manufacturing sector there.
“Having said that, it will not have any more material and tectonic impact on the overall growth scenario of Wipro,” Bhusan said.
He also said the region is largely under-penetrated by IT services companies and Wipro with its solid base in the continental Europe and Nordic regions is well placed to explore the market further.
A recent study by Motilal Oswal notes that IT spending in 2015 will be hit by market volatility. “Sectors such as retail and energy, growing at a strong momentum in recent quarters, might also see some slowing down. But outsourcing by many large organisations from continental Europe and investments in digital technologies will drive differentiation. Also, structured outsourcing in engineering services are also expected to be on the rise next year,” the report said.