Azim Premji-led Wipro said it has decided to quit manufacturing of computers and servers to strengthen its focus on IT solutions and services.
“Our vision is to strengthen our position as a leading SI(system integrator). Manufacturing our own PCs was not giving us a competitive differentiation in our SI solution offering,” Wipro Infotech Senior VP and Head Soumitro Ghosh said in a filing to the Bombay Stock Exchange on Wednesday. Wipro will fulfill its warranty and annual maintenance contracts obligations as per the terms of the existing contracts, he added.
The company will execute all customer commitments and provide support services to the entire installed base as part of its regular managed services offering, Wipro said.
Wipro added that it will re-deploy all the affected employees in the company.
Last month, HCL Infosystems said that the company will phase-off its manufacturing business in the next few years to improve margins and increase organisational efficiency.
The company will instead focus on strengthening the services and distribution verticals. Wipro has manufacturing units in Kotdwar (Uttarakhand) and Puducherry that produce desktops, laptops and servers. Built over an area of 75,000 sq ft, the Kotdwar plant manufactured servers, storage, notebooks, desktops and allied IT electronics.