JOIN USThough Azim Premji has sought to keep ownership and management separate in public and even said Rishad was too young to become the CEO of the company, Wednesday’s announcement puts Rishad at striking distance of the top job.
In Wipro, the CSO looks after two key responsibilities: strategy and acquisition, both critical to the future of the company.
Indian IT firms are under enormous pressure to reinvent their labour arbitrage-driven outsourcing model which has come under sever strain from a variety of forces —growing commoditisation of services, rising protectionism, pricing pressure, competition from newer locations, and more importantly new technologies such as cloud computing. The CSO ranks prominently among the top managers of the company who help it navigate the choppy business waters.
In contrast with usually conservative Indian IT companies, Wipro led by its CSOs has acquired other businesses aggressively to build both expertise and market.
Sources in Wipro said the office of the CSO functions like a nodal agency which works with other business units. “It helps to have Premji as your surname in this job,” said a senior executive who did not want to be named.
Rishad joined Wipro in July 2007 at a sub-general manager level at the Banking, Financial Services and Insurance vertical and was later promoted as the general manager (treasury and investor relations), a position he held till Wednesday’s announcement.
From one of the countless anonymous general managers manning Wipro, Rishad leapfrogs to the position of the head of a critical functional unit reporting to the Joint-CEOs directly. “This is arrival of Rishad Premji in Wipro. From a low-profile job he moves to the frontlines. This is his launch pad,” said the senior Wipro executive.
The position of CSO has launched other senior executives as well. One of his predecessors Sudip Nandy who shaped Wipro’s acquisition strategy, labeled String of pearls, went on to become the CEO of Aricent.
While destiny may be calling Rishad, he comes with the right credentials. With an MBA degree from Harvard Business School, Rishad has worked with GE Capital and consulting firm Bain & Co before joining Wipro. People who have worked with Rishad describe him as a chip off the old block, meticulous, hard working and approachable.
Indian IT firms, a majority of which have been set up by first-generation entrepreneurs are wary of bringing in family members to run the company. But Wipro is a notable exception as its chairman Azim Premji owns about 75% of the stock. The new announcement indicates that he is willing to pass on more than ownership to his son.