Wipro on Friday said its CEO & MD has resigned from the company citing family commitments. A statement from the company said the Board of Directors has initiated a search to identify the next Chief Executive Officer. Neemuchwala will continue to hold the office of CEO & Managing Director until a successor is appointed for a smooth transition and to ensure that business continues as usual, it said.
“Neemuchwala has been very pivotal to the success of Wipro in the last few years. He brought in a new sense of direction and ushered in a lot of changes, but what has happened in the past may not work in the future,” Sanchit Vir Gogia, chief analyst, founder & CEO of Greyhound Research, told BusinessLine.
Gogia said the deal structures are changing very quickly and the new CEO should have the skill sets to take the company to a new level. “Wipro should hire a person who is strong in hardware and software services; the CEO should come across as someone who has a more balanced view of both the new and the old. It is critical because the industry is becoming extremely competitive and the margins are getting thinner.”
“Just the ability to talk digital is not enough. The need to be able to develop solid brands of software outside of what you are doing currently is the need of the hour,” Gogia said. Hence, having a new person will be good for the organisation in the long term.
Gogia added that investors have started questioning whether Indian IT companies tolerate outsiders as CEOs. “Any choice that is made here should come with the understanding that frequent changes are not appreciated by the Street,” he said.
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.
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