Good morning and good evening, everyone, and a warm welcome to Wipro's first ever Virtual Analyst Day 2020. Thank you all for joining us today. We have an interesting lineup of presentations from our senior leadership team, followed by a Q&A. We will start with opening remarks from our Chairman, Rishad Premji, followed by a presentation by our CEO and MD, Thierry Delaporte, who will provide an overview of Wipro's strategic priorities. We will then have three of our leaders, Srini Pallia, Rajan Kohli, and Jatin Dalal, providing more context and details on our go-to-market, service offerings, and shareholder value creation strategies. We will take all questions during the Q&A, which is scheduled at the end of the presentations. We will share the instructions for the Q&A after the presentations from the management are complete.
Before we commence, let me draw your attention to the fact that during this event, we may make certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act 1995. These statements are based on management's current expectations and are associated with uncertainties and risks, which may cause the actual results to differ materially from those expected. The uncertainties and risk factors are explained in our detailed filings with the SEC. Wipro does not undertake any obligation to update the forward-looking statements to reflect the events and circumstances after the date of filing. I will now call upon Rishad Premji, Chairman of Wipro Limited, for his opening remarks.
Thanks, Aparna, and welcome to all of you to our Analyst Day, and good morning and good evening. It's good to see some familiar names again, and I hope you all have been staying well and keeping safe. This is our first Analyst Day in almost five years, and it's an exciting moment for us, and we feel we have something important to share. This is a great sense of optimism and excitement, not only for our industry, but also for this new journey we have begun at Wipro under Thierry's leadership. I have just completed 15 months as the Chairman of the company, and this is the first time connecting with many of you, and so this is an important occasion for me as well. It has been an interesting 15 months, to say the least, with a lot of change in our world and also at Wipro.
In particular, I want to talk about two big shifts that have happened in these past several months. The first big shift is that in a world ravaged by the pandemic, technology has now become the key to survival and driving resilience for businesses. This has put technology front and center in conversations across industries across the globe. The pace of transformation has dramatically accelerated, providing a huge opportunity for the industry. Many of these changes related to technology are structural, and I believe are here to stay. We already see this all-pervasive impact on the established ways of working across many sectors, whether they be retail, health, insurance, or education. The notion of work from anywhere is no longer a mere notion. It has happened, and it has happened across the globe. I don't think we will ever go back completely to this old mode of working.
We expect that in this virtual, remote, community-based, and distributed work model, which will become the norm, all powered by collaborative technologies, enterprises will fundamentally evaluate both their technology capacity and investments so that it enables them to operate with flexibility and agility. They will want to work with partners who can respond and adapt quickly to these changing circumstances. From a business perspective, I believe that we at Wipro are well placed to leverage and enable these transformations. I will come back later as to how we are driving some fundamental changes at Wipro to serve our customers better, but let me stay on the point of how we have adapted at speed and delivered through these uncertain times. Without a question and without a doubt, we were clear that the safety and wellness of our employees was what mattered most to us.
In March, at the early onset of COVID-19 and pre-lockdown, we triggered our business continuity plans and enabled work- from- home for most of our employees. And even today, less than 3% of our global workforce comes into our offices across the world. We have done our best to ensure service continuity for our employees, and we have onboarded over 18,000 employees virtually in a seamless manner in the last seven months. It has been heartening and inspiring to observe for us the seamless teamwork, which enabled the smooth execution of this massive change. In these past few months, we have settled well into this new way of working, and we have continued to make our customers successful. Seeing the confidence exhibited by our customers, I believe that some of these changes will forever transform how we work in the future.
I'm of the strong view that a hybrid model of coming in partially to work and working partially from home is going to be the new reality. Even as we focus on our employee safety and our customer success, I think we did a good job to drive a concerted effort around costs to respond to the deceleration of revenues in the first quarter. And then equally quickly, we pivoted ourselves to meet the needs of a rising demand through an efficient supply chain in the second quarter, and that continues in the third quarter. For the first half of this year, we have expanded our margins by 90 basis points. We've delivered an EPS growth of 3.1%, and we've announced a buyback of approximately $1.3 billion. I believe this is a testament to the resilience of our business.
The second big shift, which is Wipro-specific, is that we now have a new CEO and Managing Director in Thierry, who I believe is just the right leader to help take us forward and drive this wave of opportunity. The Board and I are very excited about Thierry and his leadership. I've had a chance to spend a lot of time with him, both before and after his joining. We have a strong partnership and a great working relationship, and this is a new and exciting chapter in our journey, and I must admit I have never felt more confident or excited about our future.
While Thierry will talk about the new direction the company is taking, our strategy, and how we are going to enable it by a much more simplified operating model, I want to cover some fundamental points which share the spirit, the smell of the changes that we are driving, which I believe will help us not only serve our customers better, but also improve our growth trajectory. The first, you will see an obsession for growth, and I'm using that word purposefully and intentionally, and you will see a much stronger external market orientation. Proximity to customers will be key, which will also be reflected in our new model. Two, perhaps we've been a little bit inward-looking and operation-centric in the past, and this will change. Three, we will drive deep and prioritized focus on countries, industry sectors, offerings, and partnerships.
This will require us as much to call out things that we will not focus on as it will require us to call out things we will focus on, and you will hear much more from Thierry on this. Four, we will work and drive the principle of simplicity over perfection. And five, we will therefore have a structure that makes us agile, nimble in a post-crisis world that will be all about impact at speed. I believe strongly that impact at speed will be an important differentiator. And finally, we will have fewer but relevant and impactful metrics to drive and measure our success. There are also two other things that are very close and important to me personally that I would also like to chat about. One of them is very fundamental, which is the purpose of Wipro and what we stand for as a company.
And the other is on the change in the ways of working that we want to drive at Wipro. Today, 67% of the economic interest of the company is irreversibly held by the Azim Premji Foundation. This matters to me. I know it matters to Thierry and to many of our colleagues, partners, and customers. We have always been deeply committed to being an active and responsible citizen of this world, and we have tried to bring that spirit to bear in this unprecedented crisis and time and its humanitarian and health fallout. We acted on both fronts to help lessen the human misery and to help augment public health systems. We are implementing these actions in close collaboration with both the Azim Premji Foundation and our sister company, Wipro Enterprises Limited.
While Wipro Limited has committed INR 100 crores, which is approximately $14 million, we have jointly committed with the Foundation and Wipro Enterprises INR 1,125 crores, or approximately $150 million. Our efforts have supported about 8.4 million people with about 2.8 billion meals. We have also helped about 7.8 million people regenerate their livelihoods. As an example, we have helped small and marginal farmers by providing seed, biofertilizers, and other relevant tools. During the crisis, we also supplied about 250,000 PPE kits to where they were needed the most. I also want to share two examples of how we've leveraged Wipro resources during this time. We repurposed the kitchen infrastructure and our facilities in Bangalore, in Pune, and in Kolkata to provide cooked meals twice a day for 74 days running to thousands of vulnerable families. Eventually, this served 3 million meals to over 250,000 people.
The other example is the conversion of one of our unused campuses in Pune into a 450-bed COVID isolation hospital. Our efforts continue in full steam, and we will continue to contribute as much as we can as we move forward. The second initiative that I have personally spent a lot of my time in the last 10 months is around our ways of working at Wipro. We call this the Five Habits. These are: one, being respectful; two, being responsive; three, always communicating; four, demonstrating stewardship; and five, building trust. This is our journey of cultural transformation. While our values, which we call the spirit of Wipro, remain the bedrock of everything that we do, I believe we needed to realign aspects of how we work to ensure consistency across the organization.
Embarking on this cultural journey was a strategic imperative, which will allow us to focus on driving a growth mindset across the firm with speed and with agility. Ten months into this, I have personally driven 63 sessions of two and a half to three hours each and personally met 16,900 leaders across the company to share our vision and why this culture change is critical for us. We have consciously adopted a top-down approach, asking our leaders to be the advocates of this change. As leaders exhibit the habits in action, the change will permeate through the organization, and while I know this sounds simple, I know for certain it isn't. We have a core group of passionate ambassadors, about 100 people that we've identified, who are actively engaging with our employees through conversations, activities, and platforms.
And we now have a Senior Vice President-level leader who's our Chief Culture Officer for the company. As I shared, I'm incredibly excited about the path we have begun now. I am confident that you will see a bolder Wipro, a more ambitious Wipro as we move forward, one that will be more risk-taking, one that will not be afraid to shake up the apple cart like we have done with the structure that you will hear more about, one that will not be afraid to make tough calls, to invest deep, and to think big. With that, I want to hand over the day's proceedings to Thierry and the rest of our leadership team who will take it forward. Thanks again for your time, and be well. And welcome once again to our analyst table. Thanks, all.
Thank you, Rishad. Greetings to everyone.
Whether you are joining in your morning, afternoon, or evening, thank you for being with us today. Giving us three hours of your time really means a lot. I truly appreciate that. My leadership team and I will make sure that this is time well spent for you. You are the first external audience I'm addressing since we finalized our strategic priorities. But this may not come as a surprise to many of you. Earlier in October, during our second- quarter earnings presentation to you, if you remember, I had hinted at an upcoming restructuring of our business and our market approach. Well, today, we are here to explain how Wipro is changing its operating model, what our aspirations are, how we will get to faster growth, how we will execute on our plan on each of these priorities, and finally, create sustainable shareholder value.
Enterprises across the world were going through transformations and adopting new ways of working even before the pandemic, well, the COVID-19 crisis has actually only accelerated that, especially those who were fence-sitters on the digital transformation curve now know they are at the edge. It's change or perish. Technology is really the core of this transformation, and talent the driving force. You will know that earlier, it was all about cost and efficiencies. Now, what matters is speed. The ability to disrupt oneself and at speed will allow a company to differentiate from a sea of sameness, and what we see now in the market is very interesting. The uptake in digital transformation is both on the front end to gain better access to markets and off the back end to improve efficiency and optimize costs.
That's why companies are transforming their technology stack today to operate with agility and flexibility. Cloud, cybersecurity, artificial intelligence are top strategic spend areas. But tech alone will not cut it. Trust is absolutely critical in these times and beyond, of course. Our customers want to engage and commit to partners who they can trust, partners who share similar ethics and standards, partners who can drive long-term value, who can challenge status quo, who can jointly ideate, provide insight, innovate, and lead flawless execution. We see this across all industries. Our clients are valuing industry knowledge, people who know the local market and the technology. They want to engage with talent that brings diversity of sorts and a mindset to transform. We can't underestimate capability. Everything hinges on talent and expertise. It's the most critical success factor for enterprises, including for us.
But now, let me stay with the technology thought a little longer. Increasingly and fairly rapidly, traditional services are declining, and the shift to the new is becoming very pronounced. So whether it's on-premises data, on-premises data centers, on network, or enterprise applications, companies will continue to move away from traditional IT. The numbers you see on the screen are reflective of that trend. Much of the growth for the industry will be led by next-generation technologies and services, which actually means that digital, cloud, data, engineering services, cybersecurity will be the areas where we will see huge incremental growth. That's the future. But it's also here and now. These areas are hot at the moment. In fact, we expect digital technologies to grow 15%-20% over the next five years.
Then there are the next-gen technologies like 5G, AI, or intelligent enterprise, robotics, blockchain, which will undoubtedly grow explosively in the near future as well. So here is the difference as we see it. Winning and capturing market share in digital, in cloud, and the next-gen technology areas will require industry expertise, transformation, consulting capabilities to come together. Whereas to win in traditional markets, it's all about efficiency play driven by automation platforms and capabilities. Now, while this is true universally across the globe, certain markets will be ready for this sooner and reap the benefits of this modern mindset and technology adoption quicker, while others will follow. The sectors that will drive the largest absolute growth are based on technology intensity of the sector spans and the potential for technology to digitize, migrate, operate in cloud.
It's therefore no surprise that sectors such as banking and insurance, retail and consumer, energy and utilities, and manufacturing will contribute over 50% of this incremental growth because of the high-tech intensity seen here precisely. And if we think of sectors such as grocery, retail, software, and media segments, they will also see strengths in spending. Now, from a geography standpoint, the Americas will continue to be the largest market by size. Europe and Asia Pacific, Middle East, and Africa will see a significant uptick in spend as industries and firms invest to modernize themselves and really feel that need to stay relevant and competitive. So Europe and the APMEA region are expected to grow actually faster and contribute 58% to incremental revenue globally. We will come back to that later. Now, where am I getting these numbers from? How am I making these estimations for our business?
One, our collective intelligence. On this call today is my top leadership who have tremendous industry experience. They've seen the market evolve over the years, and they have driven and shaped some of the industry trends. Then there are analysts like yourself who keep the pulse on the industry and the world around us. And finally, the most important voice is that of the customer. In the last four months since I've taken charge at Wipro, every single day, I have met with our customer executives. So far, I believe I have met 120 customers and over 25 partners, something that, frankly, wouldn't have been possible if it wasn't for the remote working setup we are all in. I know that. I want to share with you some takeaways from these conversations and how, as well, our customers perceive Wipro, our strengths, but also areas of improvements.
Words I heard repeatedly in our discussions: collaboration, focus, flexibility, domain understanding, strong values, and ethics. At Wipro, we believe business fuels our purpose, and purpose fuels our business. Our clients respect that about us. They really appreciate our passion for innovation, our culture. They see in us a partner that brings technology expertise and industry focus, one that collaborates to build together relevant business solutions. These are very significant strengths on which we will further build because we have a great set of customers that we have an enduring relationship with them for some over two decades. We are a hugely respected brand that's driven by our greater purpose, our values, and ethics. We have a team that's keen, inventive, and forward-thinking. This was truly demonstrated clearly in how we rose above the challenge in the face of the COVID-19 crisis and really delivered beyond our customers' expectations.
I've heard it repeatedly from them in my interactions. I'm very proud of that. But today, our clients expect more from us. They expect us to be more proactive, disrupt them, have strong opinions, challenge the existing, be not only the best at execution, but also a proactive force of change, a true partner in their transformation, be ready to commit to outcomes. We have heard it, and we will respond to their expectations. As we move forward, looking to our future, our vision for this great company is to be a passionately committed, trusted partner to our clients in their transformation journey, and to help them deepen their leadership in their respective industries, we really want to deliver lasting value to our clients through sector-focused business solutions, digital and technology capabilities, cutting-edge innovation, leveraging our strategic partnership, and our world-class talent.
This vision can be realized only by setting ourselves high benchmarks. We must be a fast-growing, dynamic company that is constantly reinventing itself. We want to be a true global leader of our industry. We want to attract, develop, and retain the best talent of our industry. To be able to deliver this ambition, we must play on our strengths, our unique set of values, our commitment to existing partnerships, our passion for technology, and for innovation. But we must also be ready to make bold changes, challenge our existing strategic focus areas, our approach to growth, our attention to the market and to our clients, our sectoral ambition, the way we connect technology and business, and finally, our obsession for performance and excellence. So what does that really mean from a strategy and organization standpoint? We are course-correcting somewhat and making some bold changes to alter our growth trajectory.
In the past few years, our growth has been largely led by one geography, the U.S. But also, we have had mixed results in winning large deals. And finally, we have had an increasingly complex operating model to run our operations. Our strategic priority now is to drive and accelerate growth in specific geographies, and we will focus, and we will scale from there. We have prioritized specific markets and, within those markets, specific sectors to drive growth. We cannot target to be the best at everything everywhere, but we can certainly ambition to be real leaders if we define our priorities and focus on it. This new go-to-market organization will bring the best of Wipro closer to our customers. So let me explain this further.
In the market we prioritize, we will strengthen our relationships with strategic clients, invest in the relationships, focus on proactively shaping and winning larger transformational deals, and better leverage our existing relationships with the large technology players. We will actively develop business solutions that speak to business and functional spend pools. We will focus our investments in industry-specific solutions that solve client problems. This is, in fact, very important for us for our future, and through an active offerings and solutions portfolio management strategy, we will prioritize these investments per sectors, build them once, and deploy them everywhere. Now, none of this will be possible without people. Talent will be the most critical success factor. We are launching an ambitious talent program that we will later share more details on, but in a sense, we will hire the best in both domain and technology areas.
We will intensify efforts to reskill our existing talent with the obsession, with the absolute obsession, to significantly increase the proportion of our leadership's time and attention for the market. And we will reinforce a culture of high performance and excellence across the organization. Finally, we are rolling out a very simplified operating model that drives customer centricity. Our new operating model will drive agility and empowerment for leaders and teams who are closest to the clients. I will now spend a little time on each of these strategies that I outlined. Strategy is not just about focus and prioritization, but very much about where we will not focus. We don't want to spread ourselves too thin, which I think we have done a little bit, to be honest. So this is the course correction I mentioned a few minutes ago.
It's important for us to focus our efforts and our investments for maximum results, go deeper in areas we believe we have strengths, double down in spaces where we are winning, and scale to secure leadership positions. We will therefore prioritize specific sectors in the chosen markets and build or sustain, whichever be the case, our leadership position in those intersections. America and the U.K. have historically been major markets for us. We will continue to focus on these markets, of course, but we also want to renew our ambition for Europe, for the Middle East, and Asia. In these regions, we are building a strong growth plan for the years to come. We will deprioritize certain markets where the market attractiveness is relatively lower and where our presence has been weak.
In a large geography, like, say, the U.S., where the scale of our operations is massive, we will focus on the multi-sectors. But in other sectors, in other markets, sorry. For example, let's take Switzerland. We will prioritize a few of the 23 sub-sectors that we currently have. Let's say in Switzerland, we will only focus on life sciences, BFSI, heavy industries, and consumer. Our choice of sector in a market is being driven, frankly, by both market attractiveness on one side and by Wipro's competitiveness and strength on the other side. Now, how will we do things differently in the markets we have chosen to prioritize? There are four anchors for our growth. First, our existing portfolio of large clients. Second, winning large deals in existing as well as in new accounts.
Third, participating in the growth that is led by our strategic partnership with large technology players, and fourth, in organic growth through M&A, so let's come back to the first point. The first pillar is the most important pillar for growth: our large customers, who we refer to as mega accounts or gamma accounts, who actually today contribute about 70% of our revenue. We will accelerate growth in this bucket by centering our organization around these customers. Each of these customers will have a Global Account Executive. That's what we call our new GAE model. The GAE, or Global Account Executive, will be a senior leader who will represent Wipro in the customer account and take the best of Wipro to the customer. She or he will be supported by a team of industry and technology specialists and delivery leaders.
She and he will have strong decision-making rights and the ability to decide on investments for growing these client accounts. I'm absolutely confident that the reinforcement of this key role will have a great impact on our growth in these mega and gamma accounts. I will share a little more about this in the coming slides. The second area where we'll need to significantly boost our capabilities is in large deals, large deals origination and winning. We are right now building a specialized large deals team composed of deal principals, financial and commercial modelers, experienced consultants, and program directors to really bring expertise in large deal creation, but also on solutioning, structuring, supporting our marketers in winning large deals. From experience, I know this will rapidly pay off.
The third area where we see tremendous opportunity are our strategic alliances, and in particular, the largest ones we've developed with companies such as AWS, Microsoft, Google, Salesforce, SAP, ServiceNow. The objective here is to scale each of these partnerships into large and strategic businesses for us and for them. Some of these are, in fact, long-standing partnerships that we will ensure are led by very senior leaders as well. We will also intensify our efforts to build dedicated cloud studios and centers of excellence, talent as well as capability, so that we are able to take business solutions to our top 100 clients together with these alliances.
To drive all these priorities, we are creating a new role, highly strategic and frankly missing today: a Chief Growth Officer who is charged with building a best-in-class sales team, develop and enhance the profile of our Global Account Executive, structure and lead a very efficient big deal team, and scale our alliances and partnerships. Finally, the final pillar of growth will be in organic M&A. It will be a key focus area for us, and we will continue to drive a proactive bet here. Our aim will be to fast-track solution and capability build in emerging areas and really, frankly, accelerate our access and presence in identified markets. We are right now setting up a new post-merger integration team that will drive synergies and effective integration of the acquisitions we do.
Having covered what is changing in our go-to-market design, I will now come to two of our most important differentiators: our offerings and our talent. Let's start with our offerings. Today, our clients are no longer seeking capabilities or even technology solutions. They are looking at us to solve their business challenges. And we are ready. We have this. We just need to, as I said, course-correct. Our strategic design capability has given us a seat at the table beyond the CIO's office. This gives us the leverage to continue investing significantly in our domain consulting and next generation of technology capabilities. And that includes digital cloud, engineering, cybersecurity, data. We are now helping our clients create new possibilities at this intersection of design, domain, and consulting and next-gen technology. Let me share a few examples that illustrate this.
For a global oil major, we help them create a new business model in the P2P solar energy business, including onboarding the first 100 customers. For a large bank, we are helping them reimagine the payments capability as a utility, which not only serves the bank but also launches payments-as-a-service revenue stream for the bank by enabling them to process payments of other banks. Similarly, for reimagined business processes in a public water utility company, we are implementing an artificial intelligence and advanced neural network solution that learns structural defects across the distribution system and prevents breakdown, ensuring 100% water availability for residents. So we have some great examples of these business solutions. But we want to multiply them. We want to build a catalog of industry-specific solutions relevant to our clients in their industries.
Second, the increased focus defined at company level, the alignment of all units around these priorities will allow us to concentrate our investments in the areas of priorities, prevent duplication of investments, and actually maximize leverage of these assets across the organization. Now, I'll come to the second most important differentiator. That is talent. The perception of talent has changed through the last decade. Clients need partners, those who will challenge old ways of working, bring forth new ideas, and proactively drive change. We will therefore need to incubate this in our DNA. We have built an ambitious program to hire talent in the front-end, domain, and technology areas. We will hire in consulting, transformation architects, domain, and in cutting-edge areas of technology such as AI, data, engineering, cloud, cybersecurity. Reskilling and building on-site and local scale in digital and next-gen capabilities will be also critical as well.
For this new model, we are operationalizing. Our learnings and talent transformation program have quickly adapted to the newer ways of working and are now modeled on anytime, anywhere learning, social learning, community learning, and through mentoring networks and talent champions. We will also prioritize building leadership diversity. Our aspiration is to significantly improve our gender diversity, but also our ethnic diversity in our leadership. Industry-leading growth will only come from industry-leading plurality. So we are changing metrics and hiring practices. We are taking practical, transparent, and fair steps to arrive at an acceptable talent mix. We will offer an equitable culture for all. This is also about mindset and not just policies and structure. So we are really encouraging a change in the approach for the broader organization. And you will see a sustained push to diversity.
Finally, the last but not the least, the most significant change is probably in driving a high-performance culture. We will reinforce a tighter performance management system that will drive a meritocratic organization. We have taken already a few steps in that direction, and we are confident of executing on it. Everything that we are doing through these shifts will help us become one of the most attractive employers in the industry because we want to be a company that the best talent will want to work for. Now, let me come to organizational structure, which I know you are very interested in. Our new operating model is anchored in sectors, in markets. We will have four Strategic Market Units, or SMUs, as we are calling them: Americas 1, Americas 2, Europe, and APMEA. SMUs will be our primary axis for go-to-market, and we'll have full P&L ownership.
Furthermore, the Americas 1 and Americas 2 Strategic Market Units will be structured by sectors. The Europe and APMEA Strategic Market Units will be structured by prioritized countries with dedicated focus on certain identified sectors. As you can see, the operating model ensures increased focus on Europe and APMEA in addition to Americas. I feel it does tremendously simplify the operating model by moving from more than 20 P&Ls today to just four P&Ls in the new operating model. Our capabilities will be organized under two major Global Business Lines, or GBLs. As part of the simplified operating model, we have consolidated synergistic capabilities and offerings under two Global Business Lines. These have been identified as iDEAS, Integrated Digital, Engineering and Application Services, and iCORE, Infra, Cloud, Ops, Risk, and Enterprise Cybersecurity. Delivery practices will be owned by these two Global Business Lines.
GBLs will have technology, process, and engineering practices structured to enable global scaling capabilities and solutions and best practices in delivery. So essentially, Wipro will now be organized by four SMUs and two GBLs. And that's it. Now, what does this mean to our customers? From a client standpoint, well, the model will ensure adequate sector and domain focus in our go-to-market and execution. This will enable focused growth in non-U.S. markets. It will combine global expertise with local geographical focus in building capabilities, dedicated sales presence led by proximity to client. Let me now summarize so I can allow my leadership team to take over and deep dive into a specific interest area. The new operating model has been developed based on well-deliberated design principles. It's designed to bring the best of Wipro closer to the customer.
Our organization will be centered around our client partners, the Global Account Executives that I was referring to earlier on. They will be the most important role in the new organization. Our Global Account Executive will be empowered with decision rights to control their accounts end- to- end. Our target is that GAEs should constitute 25% of the top 200 leaders in Wipro. It's not the case today by far. Backed up by the right structure, these client-facing executives will focus the majority of their time on proactive growth and relationship building. You have followed Wipro for many years. So today, when you hear of four Strategic Market Units and two Global Business Lines, you will realize that this new operating model chooses simplicity over perfection, centering our attention on the customer, removing internal barriers. It will avoid overlaps, minimize duplication and aggregation of roles.
So from a structure standpoint, you will see a simpler design, fewer layers, minimal duplication, and removal of unimportant overlays. This is a big change, but it's not disruptive. 98% of the organization will actually not be impacted. Let's not forget that. And as we make the transition, we will ensure minimal to no disruption for our customers. That is the preparation and planning this team you see today has been leading for the last three months now. So they are aware and are prepared to adopt and uphold new ways of working because the change management that we are planning is as important as the plan itself. Ultimately, we are doing all this to create strong and sustainable value for our shareholders. And that, this value creation, is anchored on driving accelerated growth for the organization.
By making deep investments in the chosen markets, sectors, and service offerings through both organic as well as inorganic means, we believe that we have sufficient levers to drive profitable growth. We will drive sustained margin and accelerated growth together and not one at the expense of the other. Automation, lean, and newer operating models will drive efficiency in the core while we capture value through the next generation offerings. We've had robust cash generation in the last few quarters, and our attempt is to maximize cash flows and return and really return cash to our shareholders. We are ready to embrace these changes, and I'm absolutely confident of building a bold tomorrow for both our customers and for Wipro. Now, I'm sure you have questions for me, and I am here to answer all of them.
But first, I would like my leaders to take on specific interest areas and give you more details on the change they are driving. Srini Pallia will cover our go-to-market changes and prio rities. Srini, over to you.
Thanks, Thierry. Hello, everyone. Hope you're all staying safe and healthy. We are very excited about our vision, strategy, and ambition Thierry outlined today, building a bold tomorrow. We will focus on executing this strategy and drive accelerated growth with sustained margins. Let me reflect on a few of the points he made today. Prioritizing our strategic markets and industry sectors with focus and scale. This simplified new operating model will help us to be agile, cut layers, and build deeper relationships with our clients. It will also drive better sales effectiveness and sales enablement. Clients' business priorities are changing, leading to business transformation, creating new opportunities for us.
Our customers today are expecting us to challenge them proactively with new disruptive ideas. With a strong sector focus, we will double down on industry and domain capability. This will result in understanding of business stakeholders far better, offer business solutions better, and improve quality of execution and program governance. Of course, attracting and building local talent in the markets today is more critical than ever. Being global yet local is an added advantage. Having the right talent locally meets clients' needs better and makes us more nimble. For sustained account growth, client intimacy and obsession is the need of the hour. Having an account team that lives by this mantra is the way to go or grow, or both, I guess. In my presentation today, I will emphasize on three of our strategic pillars that will help drive accelerated growth, of course, with a few relevant client examples.
Number one, scaling strategic clients. Two, winning large transformation deals. Three, leveraging strategic partnerships. Let me double-click on how and what of these three pillars. Scaling strategic clients is an important lever for growth. Having the right account team who can bring the best of Wipro to our clients and help them win is critical. Let me explain our method in three steps. Step one, to be a client-centric organization, we need an empowered account team with relentless client obsession, and it all starts with a Global Account Executive. Step two, a dedicated team of client partners, industry experts, and specialists will help the Global Account Executive drive growth in each of our accounts. Of course, this team needs to be bold and challenge existing ways in the account. Step three, we need to bring fresh and new disruptive ideas to clients in this changing business environment.
Being a partner and sharing our convictions and views proactively with strength is very, very important. A strong and sustained internal and client governance will help us convert ideas into opportunities. Let me talk about two of our customer examples where we executed in scaling these strategic clients. My first example today is our engagement with a large global bank. This bank serves more than 40 million customers across 60 countries. Their primary area of business is wealth management, personal banking, and commercial banking. We collaborated with the bank to help achieve bank strategic objectives of better customer experience and improved operational efficiency, thereby driving overall business growth. In just a few years of engagement, we became the bank's trusted partner and delivered several transformation initiatives. To name a few, Agile adoption at global scale resulted in a significant increase in release velocity.
It was very, very critical at that point in time. Second, creating a digital academy and providing agile coaching to uplift the bank's internal capability. Third, delivering a CRM transformation for the wholesale banking with enhanced customer experience and increased throughput. And finally, setting up a truly next-gen internet banking platform and telephony rollout. Today, this account is on a path to become a $100 million account in less than 36 months. Kudos to the team here. Digital adoption benefited the client with enhanced customer experience and improved operational efficiency, and thereby driving business growth across the globe for them. In my second example, I want to talk about a technology major, and we are collaborating with them. And this particular company is a pioneer in creating global-scale technology platforms.
Initially, for us, it started as an engagement to support a rapid go-to-market challenge for one of their fastest-growing product lines. Our account team, being very proactive, developed this into a large strategic engagement. This particular product line had complexities of multiple geos spanning 50+ countries with significant regulatory needs. These regulatory needs were different from country to country. Our client's focus was to improve the customer experience, faster time-to-market, and also brand enhancement for this product line across those countries. In fact, this engagement alone scaled to $100 million revenue within two years through a combination of our alignment to clients' needs, including creativity and entrepreneurship. In this journey, we had services related to digital transformation, re-engineering, analytics, and insights, and built a global platform to scale. Today, as I speak, our partnership with this client has matured significantly.
We are now able to accelerate new revenue streams and global expansion for this client, and for us at Wipro, one of our fastest-to-$100 million accounts. Let me now move on to winning large transformation deals. A large deal is a combination of art and science. There are many unknowns here. We need our team to be intuitive and subjective, and at the same time, well-researched and measured with client business and technology challenges. At Wipro, we are further investing in large-deal teams who can shape and construct transformation deals. Thierry talked about it. This team will be a combination of subject-matter experts cutting across business functions and technology. I'm sure everyone agrees. The more proactive we are with the client, the better the win ratio.
We need to win and create a business case for clients, which not only helps with operational efficiency and cost improvement, but is a path to reinvest savings into clients' transformational journey. Clients are also looking for faster ROI, simplified contracting, and commercial structure. Let me illustrate this with two client examples. The first one being a global automotive Tier 1 company. It was a company formed with the coming together of two leading global automotive suppliers, one based in Asia and another based in Europe. This company specialized in emerging automotive technologies like connected cars, autonomous driving, and electrification. They have a very clear vision of becoming a Tier 0.5 supplier from Tier 1. And to enable this, they wanted to drive end-to-end value discovery transformation across IT, engineering, and R&D. It involved complete technology modernization and helped drive innovation at scale.
Complexity was enhanced multi-fold due to the cultural diversity across three distinct organizations with stakeholders from four different continents and multiple countries. Our account team's approach was to be a strategic advisor to the client, helping with cost reduction initiatives, enabling innovation at scale with multiple programs in parallel and run globally. Consolidation of over 200 suppliers globally and modernizing the technology landscape was the first program that we started off with. End-to-end ownership of product development and establishing a software engineering factory for R&D, followed by driving an end-to-end value discovery across engineering and IT through cognitive automation. For Wipro, it was a fast scaling of a new account during COVID. Transition was completed remotely during the entire COVID-19 crisis with zero disruptions. Great job done by the delivery team. Innovation at scale for our clients with faster time-to-market.
And for us at Wipro, a large transformation deal helping drive account growth and thereby overall growth. Now, the second example is for a client who is a global consumer goods manufacturer. They own a diverse portfolio of brands distributed globally through digital commerce and retail chains. This client believes in high-touch customer experience, and that's how they have evolved their business over the years. The client wanted us to transform their customer and employee experience by transforming IT into digital services. Collaborating with the client, we shaped the transformation solution to drive high-touch experience with a human-centric, agile approach. This transformation incorporated a product and platform approach, which helped to bring technology, business, and functional ownership in one team. The solution has the capability to set up a cloud-based application infrastructure within minutes and, in addition, leverage multiple cloud providers globally. Our client calls it a win-win partnership.
Now, moving on to strategic partnerships. Bringing synergy between clients' business needs and partners' changing technology landscape helps create better value for our clients. And Thierry talked about hyper-growth partnerships. We will work with our partners to create new revenue streams with a clear joint go-to-market approach. Partnerships, for us, will be growth engines as we see rapid technology adoption by our clients. Key members of Wipro's executive leadership will be directly accountable for these partnerships and demonstrate our commitment. Let me talk about two customer examples where we collaborated with our partners. Today, as we know, traditional retail is going through transformation, transition, and turbulence at the same time. And this is a holiday season and the peak period for our retail customers. Let me tell the story of a large global retailer. They own and operate retail stores across multiple countries.
They have multiple formats, be it department stores, supermarkets, hypermarkets, and convenience stores. And with the changing market situation, this retailer shifted their strategy to focus on their core B2B. And as part of this restructuring, they decided to exit select businesses and markets and few countries. Through our consultative engagement with this client, we developed a deeper understanding of the client's business strategy. This required end-to-end transformation of business, technology, and people. The resulting organization was vastly different from the original. As part of a solution approach, we worked with one of our strategic partners and created a technology and a business solution which is deployed on cloud. In addition, our solution involved taking our client's IT organization, with a commitment to transform the talent, build agility, and improve methods of working.
For us, it was very critical to bring the partner way ahead of creating our solution so they are an integral part of the solution and a better value for our customers. Now, let me talk about another example. This is in the healthcare industry, and all of you know, post-COVID, the healthcare industry is going to have a rapid transformation and reimagination of how they do business. Even in the past, we have seen a lot of change, including industry consolidation, and there's been a significant push for virtual selling. Today, as part of the reimagining, the healthcare industry is looking at telehealth and telemedicine, which is going mainstream. The client I'm talking about has grown through multiple acquisitions over the last 10 years, resulting in disparate systems and technologies.
We were given the task to simplify and radically improve digital capabilities of the organization to be prepared for what's coming in the future. We started by working with them to consolidate internal and external business processes, resulting in an integrated standalone company. We helped the client simplify and standardize their entire underlying technology. For this, we leveraged not one but a few of our strategic partners across financials, ERP, and CRM systems, and we had to bring all this together for the client, helping them improve financial agility with a reduced cost of operations, and we created a variable cost structure for them. Very interestingly, this client has become our go-to-market partner, working with their business. Jointly, we created offerings to address emerging healthcare needs, so it's a partnership with our strategic partners and a partnership with our client as well.
Now, to summarize, leveraging partnerships, winning large transformation deals, and scaling clients are important pillars in driving our future growth. I'm now going to pass on the baton to my colleague, Rajan Kohli, who will talk you through the vision we have for our service offerings and service delivery. Rajan, all yours. Thank you, everyone.
Thank you, Srini. Hello, everyone, and thank you for your time today. One of the key differentiators for Wipro going forward will be our industry-relevant business solutions. Our new formation, where a Global Business Line has all the industry domain, service line practices, and delivery housed under one global structure, allows us to invest ahead of time and to monetize these solutions and patterns in the best possible ways, leading to outstanding business outcomes for our clients. Clients are no longer looking for system integrators. Neither are they looking for strategy advisors.
As the pace of change rapidly increases and technology becomes pervasive, creating big market shifts, they need partners who can deliver business outcomes. Clients used to have to go to an area of separate providers, from strategy consultants to innovation firms to digital consulting firms, before throwing it over the wall to technology implementation partners. They can no longer afford to do so. Customer innovation requires solutions to be constantly iterated with customer feedback and continuously scaled. We are now structurally aligned to co-create and scale innovation at the intersection of strategy, design, and technology. Our work today spans business transformation, helping clients create new business models, process transformation, helping clients simplify their processes to drive agility, and technology transformation to accelerate the pace of digital adoption.
Our focus on building business at the intersection of strategy, design, and technology has resulted in a set of integrated offerings that solve our clients' hard business challenges. Our offerings target a diverse set of CXOs, including the business head, CFO, COO, CMO, CHRO, CDO, CEO, and, of course, the CIO. Today, we are helping clients with the business design as they innovate the business model, create new products which deliver remarkable customer experience, and embed intelligence into how they operate and leverage data for decisions. Our recent acquisitions of Rational and 4C, combined with the market-proven strategic design capabilities through Designit, are enabling us to deliver to the digital CMO.
These offerings, combined with our ability to renovate the enterprise technology, enhance our trust with the CIO, and make us the future-relevant partner to accelerate the transformation of their IT and business operating model, enabling them to deliver business value faster to the market. Our digital operations offering is not just about deploying more bots into the operation floor. It is helping CXOs navigate the journey towards becoming intelligent, secure, and human-shaped. Integral to each one of these offerings is the invisible but all-pervasive layer of cloud, infrastructure, data, and cybersecurity. These targeted sets of focused offerings give us a rightful seat at the table with the CXOs and their Boards to help them answer the big rocks. CXOs, understandably, can get overwhelmed with the complexity of embracing their business transformation.
They are looking for a reliable partner who can help them navigate the complexity they face and accelerate the pace of their transformation, and ultimately partner with them to deliver superior outcomes. The difference between solving for parts of the problem or solving for this whole canvas defines whether they do digital or become digital. Our framework for transforming our clients enables them to become digital as they compete with born-digital companies. We focus on simplifying the experience for customers and employees. We accelerate the shift towards digital outcomes and ultimately co-create what matters to business at speed, at scale. We start by basing our solutions on the voice of the customer and helping clients iterate through their business vision and roadmap by testing minimum viable products and delivering the business case to their transformation in rapid sprints.
I would like to provide some information on one of the case studies listed here. We enabled rapid growth for a multinational medical technology company. They had grown via acquisitions, but these were fragmented, and the customer experience and support operations were broken, and they had been told by their customers that they are hard to do business with. We brought together the combined power of Wipro to help transform how they interact with their customers. Through simplification, by leveraging our outside-in design-led approach, we helped them reimagine processes, align their organization, and rationalize their operational silos, then we redesigned their operating model. We restructured their governance method and laid down the underlying platform and technology. This includes a case management system, customer self-service, and intelligent automation. This transformation will create tremendous business impact.
Beyond simplifying operations, enhancing the customer experience, and deploying new capabilities, our customer is on target for a 30% reduction in costs across key customer-facing functions. The pace of change requires the shift to the new to be accelerated. We have seen this play through COVID. Those clients who had simplified and modernized through inside-out renovation were able to accelerate this shift. We will double down on our investments required to scale capabilities at the intersection of consulting, design, and technology. The muscle built over the last couple of years, together with our investments in our own IPs and in startups through Wipro Ventures, will help us accelerate. As Thierry articulated, partners are core to our strategy. We have chosen a few with whom we will continue to invest to become their BFF, best friends forever. We want to become the ecosystem partner of choice for our clients.
Finally, as you would have seen in the last few months alone, we will continue to pursue M&A and acquire unique capabilities or market access. Accelerating our clients' shift is perhaps the single biggest ask from our clients. For a global apparel brand, we were able to improve their ability to predict quarterly revenue with 98% accuracy. We developed cognitive solutions that not only took in data feeds for every function and within the enterprise but also ingested social and marketing trends to not only predict but also shape revenue. The brand now operates at 99% prediction accuracy. More significantly, our solution has now evolved and learned to advise on best supply chain and distribution strategy to maximize revenues. Another example is our partnership with a multinational oil and gas company. They struggled with efficient and timely analysis of vast store of real-time subsurface data during exploration.
We developed a comprehensive platform in partnership with Azure that streamlined the whole process and created an industry standard working along with other oil and gas majors. Great example of bringing industry-domain, cognitive, and cloud capabilities together to solve a critical business need. We significantly cut down the time of analysis from days to hours, reducing the cost of exploration. Together with our partner, we are already taking this solution to other oil and gas corporations. Ultimately, what clients expect from us is to create business impact and outcomes. It is what matters to them: new products, platforms, new business models, and new markets.
For one of the largest health procurement organizations that initially came to us for technology implementation, we changed the brief to say, "Help us create a business that could compete with the largest e-commerce player in the world." We helped the client rethink their approach to sales and reset the strategy by enabling them to recognize the value of their own assets through a design and business strategy workshop. We were able to help the client think through a marketplace business model, leveraging their decade-long customer relationships and business knowledge. To further create a market pull with the target segment, we helped the client launch a new brand that better reflected this new marketplace. The marketplace has enabled a 10x ROI for our client. We launched it just before COVID, and it has helped serve the needs of hospitals much better during these very difficult times.
Delivering these business solutions requires us to break away and think beyond the traditional paradigms of software and service delivery and to embrace new ways of working. We have developed a unique BizTech execution framework. We call this 4M execution framework. It brings together the model that addresses new ways teams are organized, including work-from-home and the ever-increasing trend of crowdsourcing. The method that addresses new ways of decomposing and orchestrating work, taking into account the need for increased velocity, automation, and the new ways of delivery. The machine, which addresses an engineering-first approach to how BizTech execution happens in order to seamlessly orchestrate the new ways of working from design to engineering. And finally, the mindset that harnesses the spirit of diversity of the workforce and empowers them to become problem solvers versus order takers, and the focus on outcomes to be delivered for our clients.
As you would have noticed in our case studies, we commit ourselves to deliver outcomes to our clients. The shift from someone who delivers outputs predicated on triple constraints of the past (cost, time, and schedule) to a partner who commits on outcomes is integral to us becoming a business solution provider. This is in line with what I spoke with you about in the beginning: clients are not looking for system integrators. Our clients care about productivity, velocity, and business value, the metric that matters. This is what delivers superior customer experience. The market needs a true business solution provider. Finally, none of this is possible without a near-obsessive focus on talent. We believe the winners of tomorrow are going to be organizations that attract, nurture, and curate the best talent. We are fostering craftsmanship and a problem-solving culture.
We are boldly embracing our roots as thinkers, makers, and builders of products. Crucial to this is the need for a diverse and inclusive workplace that reflects the consumers that use our products. Wipro is very committed to this. Our endeavor is not just to create super-specialized talent. Rather, we are focusing our energies in curating talent that can master multiple disciplines and work at the intersection of disciplines. The need to develop capabilities at intersection and catalyze the new ways of working is our foundation for building a bold tomorrow. I'm now going to hand over to Jatin, who will talk to you about creating sustainable value for our shareholders. Jatin, over to you. Thank you.
Thank you, Rajan. Good evening, good morning, ladies and gentlemen. Thank you very much for being here. I will walk you through some of our thoughts on value creation in the next few slides. We believe that value creation is an outcome of three things: a well-crafted strategy, an enabling structure, and strong execution. Execution, defined for us, is accelerated revenue growth combined with sustained margins, margins that convert into healthy cash. Finally, the last leg of value creation is finding optimal use for this cash. In the next few slides, I'll walk you through our thinking on these aspects. As Thierry has highlighted, growth is our priority, and our fundamental investment thesis is that we need to go deep and not thin. I see four areas of investments. First, go-to-market: world-class sales talent in the form of Global Account Executives, regional leadership, and large-deal specialists.
Second, business solution-centric offerings: consulting, domain, and deep technology. Investments in IP and platforms. And finally, certification and reskilling at scale. The third priority is strategic M&A. Our focus is to get deals which provide us with capability in high-growth areas or unique market advantages. I believe that our new geography structure will be more amenable for much superior integration than we have done in the past. The fourth area is alliances and partnerships, where we add not only investment in partnership, but we add investments in the form of unique vertical-led offerings that we can create for our customers and in accelerators like Cloud Studios. In summary, our investments will be focused and commensurate with our growth ambition. That brings us to the question of where does the funding for this investment come from, and how do we see our operating margin? We believe we have sufficient levers at play.
The first being the structural lever itself. We are moving from three axes to two axes. We are moving far more focused on markets and sectors within markets. That itself will release a lot of inefficiencies and resources which can be redeployed. The second is pricing power. We are investing in new. We are moving up the value chain. That has to reflect in realizations. We are going from outcomes, from outputs. That has to come up in terms of value in what we charge to our customers. The third is operational excellence. You have seen the kind of work that we have done on automation, AI, variable workforce, utilization, offshoring. Some of these, you know, are at the best than they have ever been and will remain relentless here. Finally, situational. You know some of the expenses that are not being incurred right now, for example, travel.
They will come back, but they need not come back to its full scale because our new structure would be far more local. So in summary, we believe we can invest, and we still have enough levers to keep our margin in a sustained range. Finally, I want to talk about cash conversion. You have seen the kind of work we have done on cash. Over the last three years, from unbilled, which was upwards of 22%, we have brought it down in the range of 15%-16%. Our DSOs have improved by about 12 days. You have seen the kind of work we have done in India. Our DSO in India today is comparable with global DSO. Even as we embark on this growth journey, we will remain very conscious of how we remain focused on cash conversion.
We will not put balance sheet at undue risk, and we will keep it healthy. Of course, we will have to make some calls on the deals, and that is part of the business. But overall, our endeavor would be to keep our balance sheet healthy and risk-free. All of this finally has to convert in a capital allocation policy, cash allocation policy, what we return to our shareholders, and I'll talk about that now. The first aspect is M&A, and I have talked about it. That will remain a priority. After that, we have said 45%-50% of our net income will return to our shareholders over a block of years. Having said that, you know we have returned 87% over the last three years, and we are in the middle of a buyback, as all of you know.
So we will continue to look at our cash balance on the balance sheet and see the use that we have and take practical calls even in the future. That really sums up our thoughts on shareholder value creation. And I would like to say that there is no change in external reporting in quarter three. And all the changes that we have highlighted so far will be reflected from quarter four. I will now hand it over to Aparna. Aparna, over to you.
Thank you to the entire leadership team for spending some time with us and talking us through on what's next for Wipro. We will now transition to a 15-minute break. Please take this time to stretch your legs, refill those coffee and chai mugs, and step away from the computer for a few minutes. When we return, we will shift over to the Q&A portion of the event. You can access the session by selecting "More" in the top-left corner of your screen and choosing "Q&A Session." In the session, you will have the opportunity to actively engage with our leadership team. In case you would like to ask your questions directly, select "Ask a Question" in the bottom-right corner of your screen, then type in your question.
Our team will invite you to join our virtual stage, where you will have the opportunity to turn on your camera or just a microphone and speak directly to our leadership team. Remember, this will be in the Q&A session. So navigate to the top-left corner, select "More," and choose "Q&A Session" to join. Thank you, and we will see you around on the other side of the break in 15 minutes.
Everyone, I recognize it's a lot to take in. And truly, thank you for your time and your interest in Wipro. Before we take questions, let me summarize today's discussions. What is different this time? Well, the change is around how we are prioritizing, simplifying, and doubling down on developing a growth mindset. The change is how we are putting power where it should be, making our company more customer-centric. The change is that we are now investing in existing accounts and capabilities, going after large deals. And finally, in how we handle talent, a tight performance management system, along with inculcating and encouraging a high-performance culture. I'm holding my leaders accountable to how we are going to make sure we execute this plan.
We have a reduced leadership team that I brought from 17 down to 10 leaders to be more decisive and agile, who are highly motivated by this plan and who will work together to turn this plan into a reality. With that said, I will hand it over now for questions.
Thank you so much and welcome, everybody. We will move to the Q&A session. As Aparna mentioned before the break, we have a few ways in which you may engage with this session. I will briefly go over the flow of this event, and we can begin. First, if you have a question but do not want to join the call, please type out your question in the "Ask a Question" icon located on the bottom-right-hand corner of your screen. Our moderator will be asking these questions on your behalf throughout this session. If you would like to ask your question directly to the Wipro leadership team, please type in the word "question," and our moderator will add you to the queue. When it is your turn, you will be prompted with a button inviting you to the stage.
Once clicked, you will have the opportunity to test your mic and camera. Then select "Join" to enter the virtual stage. I will introduce you, and you may go ahead and ask your question. If I mispronounce your name, please correct me before asking your question so the leadership team can address you correctly. Now, if you would like to ask your question directly but do not want your camera enabled, please type in "Question, no camera." When you are prompted to join the call, our team will ensure that your camera is turned off when you join the virtual stage. For attendees who will be joining the call, please note the following. We will give 15 seconds for you to join the virtual stage. If we run into technical difficulties, I will shift to a written question from the audience to allow for some troubleshooting time.
If you join while that question is being answered, I do ask that you please hold until the speaker has finished. I will then reintroduce you, and we can proceed with your question. All right. That is everything from my end. Wipro leadership team, are you ready to hear from our analysts?
Yes, we are.
Wonderful. Okay. So first, we are going to hear from Kawaljeet Saluja from Kotak. We are standing by for Kawaljeet to join us, so please stand by.
Hi.
Hi.
Hi . Okay. Sure. Thanks a lot for sharing a nice overall thoughts on where Wipro is headed. My first question is that it's important to understand what did not work in the past, but that's an important bridge to understand the current set of changes. So what were the layers of the organization structure? What were the inhibitors to growth that the new structure solves? And more importantly, if you look at this business, I mean, this business revolves around domain, which is verticals, and competencies with geo as an afterthought for ease of aggregation of business. I mean, somehow in the new Wipro structure, an afterthought is the primary P&L. What explains this dramatic shift?
Okay. Thank you very much for your question. Let me try to respond to your three points. First of all is about what hasn't worked in the past. Well, let's be honest. I don't think it makes a lot of sense to go back into 10 years of history and really look at the reasons and why and so on. What I know, and everybody knows that the growth we have had over the last years has been modest and far from the competition. Okay. We have analyzed and reviewed. I have spent hours talking to the teams, speaking to customers, getting their feedback about the quality of the services, but also where we can improve. And reflecting on that, it's really down to those five elements. At the end of the day, it is that we really need to drive and reinforce the growth culture.
And starting with our focus on our large accounts. Don't be afraid to go after large deals. Leverage the power of the large technology partners. It's really about continuing to improve our value proposition, have strong sector-specific solutions. So really go beyond being a great partner at execution, but also really bringing value, challenging the existing, disrupting in many ways the situation of the client beyond this side. The third is really to continue to invest on talent. My view is that we have had a very warm, protective culture. We will push, keep the strong aspects of our culture, of our values, but really push on the high-performance culture as well. And finally, and that will be the link with your second point around the organization, the layers, the complexity of the organization. Let me take an example.
So the model we were running under, and I'm not questioning the reasons for that. There might have been good reasons at some point in time, but the reality is that it was not applying equally well in each market. Given the size we have in America, the fact that we are going after as many as seven sectors and across sectors as many as 26 or 27 verticals is okay. But imagine that we are developing the same volume of verticals in each of the geographies where we have a smaller footprint. That is not working. That is too many. We are spread too thin. We don't have the size to go after 26, 27 verticals in every geography.
So what happens is that we are going in one place, in one geography, and then on another sector, in another one, and maybe it's changing, and we need to align that. And the purpose of this organizational change is to simplify, focus, and align. The number of layers, I'm going to give you an example on the layer and the way we've addressed it. If you're managing an account, a Global Account Executive, you're managing a very large relationship. You're in front of the customer. You're in front of our clients. And you need to bring all the assets of Wipro to the customer. In the organization of Wipro, we have such important people, Account Executives, being sometimes at five or at six levels below the CEO.
It's a lot of layers between someone actually impacting the growth of our organization with an important customer and the leadership of the organization. We've removed several layers. Today, if you are a Global Account Executive, you are a Level 3 leader, and possibly for a smaller account, a Level 4, but never below. So it just sends a very clear message that there's nothing more important than being an account executive in this organization. And therefore, the rest of the organization is here to really serve him, to really make him stronger, providing him with all the weapons he needs to deliver for the client every day. To your third point around the organization itself, let's be clear.
The logic of our setup, which is to reduce tremendously the number of P&Ls, again, in terms of simplification, imagine over 25 P&Ls down to four, real four P&Ls across the organization will reduce the number of frictions, will reduce the number of walls internally, but also, if you think about it, it's the best of both worlds. Our SMUs focused in geographies, they're connecting with the customer, they're connecting with our clients. They need to be where the client is, so the local connect is critical. Therefore, the need to anchor our sector strategy in those markets, but then when it comes to leveraging our capabilities, leveraging our solutions, we want our customer to benefit from everything the group has to offer, and not only in a given geography, and that is why our capabilities are in Global Business Lines.
So that is a combination of a local connect and a global capability and solution setup. Thank you.
Thank you so much for your question.
Next question.
We have a written question from Prashant Kothari. So I will be reading it aloud. Which markets' sectors are we deprioritizing really? And what percent of our current efforts' revenues do they represent? The illustration of choosing the four largest sectors in a small market like Switzerland seems like a feeble attempt at focus. Can you give bigger and better examples, please? Thank you.
Yeah. No, I can give you obviously more examples. And I don't think that the example of Switzerland is irrelevant. Our business in Switzerland is actually big. We have a significant business in Switzerland. We have very important accounts across those industries. So what is it if we are suddenly deciding to focus our attention on this Swiss market, if we take this example, around these industries, leveraging around our relation we have with these accounts? It forces us to take difficult decisions to say, "We will not look at other sectors." And we will be serious about it. We will stick to this rule. What is the percentage that will be deprioritized? I would tell you probably today 2%-3%, but it's more than 2%-3% of our cost because that's the problem. Today, our costs are spread everywhere.
We try to have someone addressing every single segment in every single industry. So when you are looking at the investment, we're talking about an amount that is divided in many, many, many sectors and segments. The same amount of investment will be focused on these few industries. Which markets we are not focusing on? If I take the extreme example of Africa, today we are operating in many different markets in Africa. Let's be honest, some are more important than others. We are putting it very clearly that our strategy is to focus on South Africa. It doesn't mean that this is the only market. This is the only market where we will truly invest. Others, we will deinvest, and we have had some investment.
So it's a meaningful step that we are taking to really defocus, so really redirect some of the investment to what matters the most to us for the years to come.
Wonderful. Thank you so much. We have another written question. This is from Parag Gupta. Outside of the org structure simplification, how is the strategy different than earlier? What are some of the new metrics you will share for us to understand if the new strategy is succeeding?
You're absolutely right on one thing. The organizational change is substantial. Certainly, let's not underestimate it. It's a substantial change. And you know that when you change an organization, this is driving change in the way you are attacking the market. But there are some very substantial changes beyond the organizational change. And I would say the fact that in the past, or until recently, frankly, we were managing our organization, our business per sector, but with most of our leaders in Americas. So here's what we are doing. It's a significant change. And the reality is that we were actually growing in Americas. We could possibly grow more in Americas if we had our leaders in Americas focusing on Americas as opposed to going in many different places elsewhere.
What we are saying is we are saying we will continue to focus on the American market, of course, the most important market for us. And this team will focus on the American market, but we will have another team focusing on the European market and the third one on the Asia-Pacific market. So that is clearly an objective of focus that wasn't here. The second major change in our strategy is the recognition and the realization that it's not only about being great at execution. So we have great stories of places where we have truly transformed. We want to multiply it. We want to institutionalize it across our organization. We want to make sure that we are moving from a culture of heroes to a very strategic, systematic focus on being the partner in the transformation of our clients. So that is a significant shift as well.
The third one, I would say, is if you look at the way we are leveraging capabilities, we have very strong capabilities. I've been impressed by the quality of the people, the capabilities I have seen in our service lines. But they were a little bit isolated, so selling a little bit everyone on its own services. The setup that we have put in place now with two large Global Business Lines will really allow the orchestration of those service lines to really improve the quality of our offerings and really offerings that are addressing business challenges. Can I ask you, Rajan, maybe to jump on this one and maybe build a little bit on it?
Absolutely, Thierry. Thanks for that. We are seeing the client's buying pattern completely change. Clients are looking to buy solutions. In the past, clients would buy discrete practices and offerings from discrete service lines. Now we are seeing in 90%-95% of the cases, what we offer to clients cuts across multiple practices, even things like AMS. AMS, as was sold in the past, is no longer being sold the same way. Clients want to see DevOps. Clients want to see DevSecOps. Clients want to see change as part of AMS. So it really means that we were trying to pull various service lines together to create offers. Now, most of what we offer to our clients sits within one GBL or the other.
That really helps us prefabricate those solutions, create what we call RLS, which is most optimized for the benefit of our clients, and deliver those services within the GBL. A lot of what we learn is through delivery, and we improve our solutions. If delivery gets fragmented, then learning gets fragmented as well. So we are going to deliver as part of the GBL in a very consolidated way across all geographies globally. So this really helps us combine. So organizational structure is the start, but really, it is the underpinning of this bold change that we are taking.
Thank you, Rajan.
Thank you so much for the insights. Appreciate it. We have another written question. This is from Divya. The markets have been very forgiving of margin drops during the investment periods for your peers. If you have confidence of accelerating revenue through your renewed strategic priorities, why not use the opportunity to invest more aggressively instead of trying to maintain that fine balance?
Divya, this is a very, very good question, frankly. I agree that it could be a strategy. I personally don't believe that it is the right strategy because what happens is that when you are degrading the margin, it's difficult to go back. And so my philosophy, our philosophy in the team is very clear. It's about being more efficient, leaner, and more focused. That should free up investments to really reinvest it into what we want to do, which is investing into those areas, whether it's in terms of talents, expertise, in terms of solutions, in terms of sector depth, and so on. So our strategy is sustain the margins and start to accelerate the growth. Accelerate the growth, step one. Get to the level of growth of our competitors, step two. And beat the market growth average, step three. That's our journey.
We are very confident that by being more focused on the market, having less operators, P&L managers, aggregators, and more people that have an impact in the market, we will be more focused and be more aligned on where to invest versus where to disinvest. We will have this impact that we are looking for that will help us to trigger an acceleration of the growth.
Wonderful. Thank you so much. Okay. We have another written question. This is from Dipesh. By when do you expect Wipro organic growth trajectory to meet/exceed industry growth? Do you think M&A will be crucial to address some gaps?
So there's two questions in it. So the first one, I have said in my speech, and frankly, I will repeat it. I don't think I will play the game of telling you whether it's in Q3 or in Q4. And I think it is we are on a journey, okay? And we know where we are. We know where the starting point is. And we will track quarter over quarter, and we will keep you informed. It's very clear also that we will not be the ones overpromising and under-delivering. So we will progress, and we will keep you posted. But there is no question that the trajectory is here, and the ambition is very clear. As for M&A, yes, M&A is part of our strategy. Yes, we've been probably more shy, more conservative on the M&A front than some of our competitors in the last years.
We are going to accelerate. M&A is critical. We are in a market where size matters. We are in a market where technology evolves very rapidly. And therefore, to follow and accompany and help us accelerate the organic growth, bringing capabilities, expertise, sector depth as well, market positions will help us. So M&A will be definitely a part of the strategy over the next few years. Jatin, you want to say one word on that, maybe?
Yes, absolutely. And we have always looked at M&A from a point of view of integration and success we can make. And a very important aspect of the new structure is that it enables us to very nicely integrate some of the capability-led acquisitions, market access-led acquisitions that we will do. So I think both from ambition of growth as well as our own confidence of how quickly we can scale up some of the capabilities that we are acquiring is much higher now. So I feel very, very comfortable about the investments that we'll make in M&A.
Jatin, thanks.
Wonderful. Thank you so much. We do have an attendee who would like to join us on the stage, so I would like to invite Sandeep. Please join us and ask your question. There will be a prompt that will come through. If you click Accept, you'll be able to enable your mic and join us on the stage. Thank you so much. Okay. It seems like we're running into some technical difficulties, so I will proceed with a written question. Sandeep, if you are able to join, I do ask that you hold until our speaker has finished, and I will reintroduce you to ask your question, so this written question is from Ashwin. As you look into bringing a performance-oriented culture at Wipro, how are you looking at induction of fresh talent in senior management at Wipro?
From the look of it, you seem to have reposed faith in experienced Wipro old-timers, with four of your SML GBL leaders having spent 22 years-28 years with Wipro.
So to the first question, which is about the intention to bring talent from the outside, there's no question that I've said it very clearly. We are completely aligned with the team. We truly want to continue to develop our global brand. And also, we are very serious about diversity. And so all sorts of diversity, by the way. So we will definitely onboard people from the outside. And you will see it over the next few weeks and months. There will be several talents who will come and who will join and continue to reinforce the quality of the team. If you look at the team that we have in place to run this agenda for the next years, we have indeed some outstanding talent from the Wipro team who have brought Wipro to a global leader today and who have great impact in the market.
But we also have talent who are coming from the outside. And you will see that also in the coming weeks. We are going to welcome and add some talents in the SMU with the Chief Growth Officer. And in many different countries, in many different roles, you will see a lot of addition of talent from the outside. So we will clearly promote from within, but also bring talent from the outside. Very open to looking for talent wherever it is. Saurabh, you want to add maybe a point on that?
Yeah. Thanks, Thierry. Very clearly, the agenda is to drive both internal talent and get the best of breed externally, both at the SMU level and at market-facing levels. So at GAEs, technical experts, domain experts, consulting experts, you will see a huge amount of focus being brought into that to bring those kinds of talent. And the other thing I think what Thierry called out and it's important is driving a very strong performance-orientation organization. So the entire organization has got used to that you have to drive outcomes, perform, and get rewarded. So I think that is a very clear shift which we will be seeing as we move forward, striking the balance between our deep values as well as bringing in the right performance in the organization. So it's a healthy mix of internal and external talent, as you will see as we move forward.
Saurabh, thank you.
That was an amazing question and great insights. Thank you so much. We have a written question from Sandeep. This is a question to the Chairman. The Board has seen several leadership and strategic changes in the past 8 years- 10 years. However, organic sales growth of Wipro remained lagging peers' industry. This time, how will the Board look? How is the Board looking to oversee, make sure that the strategic goals are achieved? As you said, you are now more confident than ever. What makes you say that?
Yes. So we don't have the Chairman with us. Thierry, I'll request if you could respond to this.
Yeah. Well, this is unfortunately, indeed. I don't think we have, and I realized in this exercise, it's really quite an unusual situation, of course. Hopefully, we will be able to have a physical market analysis day going forward. But we need to adapt to the reality of the world we are in and the fact that we are a global organization. We have to deal with different geographies as well. To this point, since Rishad isn't here, but of course, it's a question that I think he's been asked several times. I think when we look at the evolution of Wipro over the last years, there's a lot of outstanding assets. There is a lot of outstanding talent. Think about the following: 120 clients I've met, 70% of our revenue.
I've got direct feedback from them, from CEOs, from CIOs, from COOs about what do they get with Wipro? Do they like the partnership? I've had a ton of outstanding feedback. So we have a great company. We have outstanding clients. We have 185,000 employees with big heart. You know that Wipro is a company who's led by the heart. It's a company with a unique purpose. Not a single other company in our industry has this sense of purpose driven by the founders, as in Premji and Rishad. And they are absolutely driving this. So we have the asset to be a highly performing organization. But several things were blocking this growth. And you may not necessarily fully realize the impact of the organizational complexity.
But in every interaction with members of the team, whether at the higher level of the organization or at the lower level of the organization, the feedback on the complexity of the organization, too many delivery models, how many P&Ls, how do we share resources, internal trading rules, and so on, made it difficult. And so at the end of the day, this is what we are fixing. I cannot comment on the past with my other colleague CEO before. But this is the reality of this organization. There is no fatality whatsoever to the growth or the modest growth we have. It's by addressing those points identified, we go back to growth. There's no question.
Wonderful. Thank you so much. We have a follow-up question from Sandeep, and this is directed towards our CEO. In your post-mortem for strategy refresh, what, according to you, two to three things that were not working earlier for Wipro, and how you will address those now? The three of them were strategy refresh seems new and bold, but Wipro did this refresh earlier, and also competitors are targeting the same goals as you. What will be two to three things in which will be different this time versus earlier?
Srini, or Rajan, one of you wants to take this one?
So if it's okay, Thierry, I can make the shift.
Okay. So I've been in Wipro for a very long time, 25 years. At a strategy level, of course, 80%-90% of top-line strategy would look the same between the various providers. It would be wrong, actually, if 80%-90% of the strategy between the providers doesn't align. It really comes down to how we execute on the strategy. And we've been working with Thierry and the leadership team over the last three months in designing the organization structure. I think the most difficult decision was how to align, how to structure, what pieces go well together, what pieces need to synergize. A lot of decisions that were made, and many of them were really difficult decisions, I think gives me personally the confidence that this is the model that we can execute to, and we can execute well.
Again, in the past, there were several decisions made which seemed right at that point in time. But the market has shifted drastically, and post-COVID, the pace of change has only increased. This structure allows us to run and perform in this manner for the next three to five years. Of course, we will continue to make changes. Even if top-line strategy remains the same, how we execute that strategy, we will adapt. It is like a GPS, like a Waze GPS, not even a Google Maps GPS, where you continuously adapt and get to your final destination faster, so I have a lot of confidence, and we've been talking to our teams, and trust me, they give us very direct feedback, and we've heard from them that actually we have solved some of our big roadblocks through the organizational change.
And I think that puts us in a position to deliver to the strategy. Thanks,
Thierry. Do you want me to add something too?
Of course. Please, please, Srini, go ahead.
It's a very good question. Again, I've been a long-timer at Wipro. And I want to just talk about two things that Thierry is bringing in, and we are together working in terms of the execution of this strategy for accelerated growth. Now, in the new context, let me focus on the Strategic Market Unit. What is it that is going to be different from what it was in the past? Now, being a strategic market, I can speak for myself in my role as far as Americas is concerned, it's going to help me improve the sales process, which is very, very critical. So what does that mean? With the teams local, it will be a more empowered and faster decision-making. Two, we'll have a better deal qualification process and deal delivery assurance process around this. And clearly, the SMU team is front-ending the customer.
So there's a lot more time spent, like Thierry said, in front of the customer. So that's number one. Number two is in terms of the sales enablement process itself. With the local subject matter experts and the technology capabilities that Thierry talked about investing in the market, we are going to be a lot more proactive. And the deals that, again, the way we're going to shape both business and technology transformation for our customers is going to be more proactive than what it was in the past. And of course, there will be a lot more simplification of our commercial and legal structures because it's more market-focused, market-specific. Every country has different structures, and we need to align with that. The third piece I want to talk about is in terms of the hunting or the opening the new logos.
This is going to create a lot more focus for us in the market that we operate in. If you look at our customers in the U.S., for example, most of the time, they move from one sector to another sector, not from one country to another country. So there is a relationship continuity as an organization that we can bring in and leverage the local leadership across the sectors that we have and double down and bring in a lot more energy to the deal pursuits or in terms of engaging with our customers, and the last one I want to talk about, in fact, Thierry and I had a customer meeting with one of our large strategic customers yesterday, and the customer we're talking about, what's the change and how is it going to benefit them.
One of the biggest beneficiaries of this change that we are talking about is our global customers. With a dedicated Global Account Executive, again, Thierry talked about, there's so much accountability for the GAE. And at the same time, they are very empowered with a dedicated team of service line people, delivery people, and consulting teams right across. And they have the flexibility to deploy teams across the globe wherever the decision-making happens, wherever the customers are involved in the market. So those are the four things I would say from what I've seen in the past as a Wipro executive to what I see and feel. I'm definitely very excited about this. Thanks, Thierry.
Thanks, Shrini.
Thank you so much. That was a great question. I have a very detail-oriented question from Shashi. In our new structure that we talked about, how are the alignment of MNCs, say a global bank with whom you work in Americas, Europe, and Asia-Pacific, would work? How would you ensure coordination? Talent hiring, twofold question. How much ground we have covered in terms of talent hiring? Are we going to see changes to CEO- 1, CEO- 2 level also? How would you ensure unwinding of the culture that has been so deeply ingrained? We did articulate that we won't shy away from tough decisions.
That is true. Absolutely agreed. I confirm that we will not shy away from tough decisions. There is absolutely no doubt, no intention to shy away. The determination is total from me, from the team, to really make sure that we have the best talent in our team. And I take very often in the team the analogy of sports. It's about how can you continue to improve the quality of your team? How do you get the best players on the pitch and then make sure that they work together, shoot in the same direction? But don't have any doubt on the fact that we are going to be very serious about the way we are obviously empowering the people that have been put in the position, bring talent from the outside, continue to reinvest into, but also promote from within.
We have outstanding talent who needs to grow and can be outstanding leaders tomorrow in the Wipro organization. But this is the whole agenda of talent. I would say probably one, if not the most important agenda for the next two, three years for us. Now, to your first question on the large accounts or global accounts, are you okay, Srini? Back to you.
Yeah. I'm very passionate about it. I'm happy to answer this question, Thierry. Like I said, the biggest beneficiary of, I want to repeat this, is our global customers. At a company level, we have identified global accounts where we're going to have dedicated GAEs. Now, these GAEs, like the Global Account Executives, will be owning the P&L for the account. So what are they going to do as part of that process? Number one, they're going to pick the team that is the right team for the account, which is client partner, consulting team partners, delivery teams, and service lines. Second, they're going to create a global structure which will actually mirror the customer organization. And again, that's extremely critical because the decision-making happens within the customer organization. And in a global customer context, it happens across countries and across markets. They're very dominant.
So that's the second one that we're going to do, that we're going to focus on. Third is we're going to create a bandwidth for this dedicated global team to be proactive. And some of the examples that I talked about, you've got a small engagement with a customer. How do you scale it? Two, how do you proactively challenge the customer with the disruptive ideas? Make sure it's very relevant in the context of that particular customer in the changing business environment. And finally, how do you get a strong program governance globally and at the same time making sure the business stakeholders are also taken care of? So from that point of view, this model really helps our global customers. Thanks.
Srini, thank you.
Thank you so much. Our next written question is from Kunal. On the new design for the delivery organization, we see companies breaking up, offering into 8- 10 different pods and bringing them together for a customer through the client partner. Could we talk about the benefits of breaking services into just a two-bucket structure?
Absolutely. Rajan, are you willing to take this one?
Yes. Yes, Thierry. Thanks, Kunal. I think it's a very good question. So number one, at a GAE level, we have one global account partner for an account. But underneath, it's very important that whatever can be prefabricated, whatever can be combined at offer level gets combined. Because very often, clients today themselves do not know what they really want to buy. They have a need, but they don't have a very hard definition of what serves that need. And hence, the provider that can actually tell them the what and the how wins much more. We talk about consultative-led sales. What is consultative-led sales? It's really about our ability to tell the client the what and the how and not just how you do it.
So we, in this new model, will be able to invest in building the talent that actually solves that particular problem for our client, tells them the what and the how, and actually then connects that consultative sale to the delivery under one Global Business Line. Second, Thierry talked about not having multiple P&Ls. At the SMU level, we have one P&L. Very often, the investment goes into one particular part, whether it is a pre-sales investment or sales investment or solution-building investment. But actually, the downstream revenue comes to another part. And when you have multiple P&Ls, it will eventually lead to a lot of conflict of interest. And by actually consolidating under two Global Business Lines, we are actually removing all of that conflict of interest. We're able to now invest proactively, also then scale those investments globally.
So we are solving a lot of these challenges for both our clients and, frankly, for our GAEs because, as I said, what we are selling today is far more complex than what we were selling three, four, five years back. And the market clients are looking at not just strategy providers or innovation shops or digital consultancies or system integrators. They're actually looking at this entire canvas and a player, a provider who can actually solve all these four challenges for them, connect the why, the what, and the how together with do it will actually win in this race. And we feel that with this new configuration, we are putting ourselves in pole position for that market. Thanks, Thierry.
Thank you so much.
Thank you.
Kunal? Yeah. Sorry, go ahead.
No, no, nothing. I was just thinking, Rajan. Please go ahead.
Sounds good. Kunal does have a follow-up question for you. Could you talk about markets, industries that are getting de-emphasized and if those are meaningful contributors to today's top line?
There are definitely market industries where we have decided to not focus our investments. It could be, for example, in the government space in some countries where we decide that we will no longer invest. It could be some industries that are not in a growth trend for the next years, and it can be also in place because we make the choice in, say, in Switzerland to focus on four. It means all the others we are by definition not investing in it, so there are definitely, if you look at some of the areas in the, yeah, I took the example of public. I don't know, Srini, do you have any specific examples you want to bring?
Sure. I want to talk about what we're going to focus on, but if the question is more around what we will not focus on, I agree with you. Public sector is one, especially in the countries where we have identified. Second is at this point in time and on the next couple of years, if you look at markets, industries like hospitality industry, which has taken a hit, what and how we need to do that. Also, airlines, how does that work, so we are just taking a look at very specific industries, but again, it is a lot more like Thierry said, across the markets rather than just a particular market. For example, in the U.S., there are opportunities for us in these two segments that I talked about.
We will definitely be opportunistic and bring in our best of whether it's an IP that we have or an end-to-end solution that we have, but if you want to cover the broader markets as well.
To build on what Srini said, I think that's why I was trying to think about how to articulate this. What we've done is we've taken all the markets where we want to invest. And we've said, "Okay, let's look at this market. Let's look at all the verticals we have. What are the ones where we want to go big, really big, and invest massively? The ones where we have a position, but where the market and the growth will not be necessarily here. And the places where there's potentially a market, but we are lagging behind.
And the markets where there is either not much growth or where our position is really not very relevant. And our decision is in each of these markets to say we're going to invest into, one, the markets where we have absolute strength and can gain leadership, build on our strengths, but also look at the markets where we have an interesting position. We might have the opportunity to accelerate because the potential of this market is here. We are not yet really a leader, but we could get there. So to respond to your question, we would have to look at it every country by country. And indeed, we have done the exercise. So for every country, we're very clear about where we want to go, where we don't want to go.
Wonderful. Thank you so much. We do have a written question from Surendra. What are some of the data points or metrics that you will be monitoring and sharing on an ongoing basis, which can help us understand the turnaround, acceleration, if it's heading in the right direction, as the results will take time to be visible? Thank you.
Thank you for the question. Jatin, I think it's for you.
Yeah. Hey, hi, Surendra. Hope you're well. My answer to that is three or four metrics that we would like to measure. I mean, in fact, we will definitely measure internally, but more importantly, we will start sharing with markets from Q4, Q1 time frame. One is really our definition of where we are seeing acceleration in offerings. Second would be how we align some of our client metrics, our external reporting with SMU and GBL. That would be second obvious sort of revise or refresh metrics. Third would be some early indicator of success in terms of deal wins, particular value, or particular number of wins above particular cutoff of value. These are some of the thoughts that we have. We'll talk more about it in our earnings call and other interactions during, let's say, Q4, early Q4, and certainly by end of Q4. That's the broad thinking, Surendra.
Jatin, thanks.
Thank you so much. We do have a similar question, but framed a different way. So I'm going to ask it. This is from Parag Gupta. Outside of the org structure simplification, how is the strategy different than earlier? What are some of the new metrics that you will share or share with us to understand if this new strategy is succeeding?
So I think I addressed this question at the beginning of the Q&A, but let me just take a different angle to maybe add something to the first question. Let's look at Europe for a minute. We have a significant part of our business in Europe. We have now a clear, ambitious, sorry, ambition for Europe. Very strong ambition. We want to become a leader in our industry in Europe. So this means we are clear on the markets that matter and where we should invest to really leverage around the great positions we have earned over the last years, the strong accounts that we have, obviously to develop them, but also win new accounts and really build a strong player in Europe. So this is an ambition that is very, very central to our strategy. Same thing for Asia-Pacific, frankly.
So you can consider this as being a true addition to the strategy that we had, which was a global strategy, but benefiting mostly to America. And it's clear to me that America will continue to go great, actually will grow better because now we have a great team focusing on America and really having feet on the ground in America every day. But this additional ambition for Europe and Asia-Pac is a very interesting one. M&A will play a role as well, certainly, to help us accelerate and drive this strategy forward.
Wonderful. Thank you so much. We have a written question from Ankur Rudra. Culture is intangible and change is usually very difficult. How do you go about creating a high-performance culture?
I really like this question because I think I absolutely share this view that at the end of the day, organization you can shift it in a few, I don't know if it's days, but maybe weeks. Systems in a few weeks, processes in a few weeks or months. People take sometimes more time. So you're absolutely right. One, we are lucky at one thing at Wipro, the incredible depth of the values of the culture of Wipro, and I'm speaking as someone who has joined this group five months ago. And I've learned from day one about this culture. And it was overwhelming to me to feel the power, the strengths, how loyal the people are to Wipro. Second is the incredible work, and I'm serious about incredible work done by Rishad, our Chairman, around those Five Habits.
He has spent hours, I mean, thousands, no, hundreds of hours in, I think, 70+ meetings, meeting thousands of people, working on those Five Habits that he was talking about earlier on. It is driving a lot of impact in the organization. I'm getting a lot of email from people reacting to that and feeling that. Behind those Five Habits is the fact to accept the change, to always look at ways to be better, to have a bigger impact. What I find also very impressive in the organization is that genuinely people are willing to do the right thing for the benefit of the company. They love so much this company that they're ready to change if it's driving the benefit of the company, if it's driving success for the company. We've shared, you probably have seen, we have shared the organizational changes already several days ago.
We've received a ton of feedback, incredibly positive. People are very pleased. They feel this is indeed simple. Even if for 98% of our employees, it's actually not going to change really the reality of the day-to-day world, but they see that it's actually unleashing the power in many areas. People in the field will have more ability to act and take decisions and be accountable for things. So that is definitely one big aspect. Fourth is no question that change management needs to be managed, and so we have set up a team driven by Ajay Bhaskar, our head of strategy and transformation. We've organized it with a team, a rather significant team that is positioned in every of our SMUs and GBL to make sure that we are really addressing all the different aspects of the change.
And so what I can say at this point in time, obviously, we are in the transition to be done by the end of the calendar year 2020. Things are progressing very well. But the spirit is here, is what I would say. Outstanding spirit from people who feel that this is the right plan to really invert the trend or really accelerate the growth of this organization and really be ready to be bold and ambitious for the future.
Thank you so much.
Saurabh.
Sorry.
Excuse me. Yes, maybe since it's around change management, I would like to ask Saurabh, maybe if you have a few words to add to what I said.
Thanks, Thierry. Two, three critical points I want to say. One is culture change is a journey. It's not a destination. It'll be an ongoing. And the most powerful tool for bringing culture change is leadership role modeling. And I can say on behalf of the leadership team that we are extremely committed to make sure we execute on the strategy. As Jatin called out, that is what is going to differentiate us. And we will walk the talk either on performance, either on being close with the clients, either on sector focus, either on getting the right solutions. So we will see the leadership very committed to make this happen. And ultimately, as Srini said, genuinely the larger workforce wants Wipro to do well and will want to change for the good of the company.
So we will see as growth comes, as change happens, as we build on successes, we will see the change happening. But I want to say it's a journey which will be on it. It doesn't end on one date, and we will keep going at it.
Thanks, Saurabh.
Thank you so much. Our next written question is from Divya. What's the intended time period for completion of the reorg and for the major investments, for example, M&A?
Okay, so first for the transition, so transition has started. Look, we haven't lost much time. Transition has actually started. We are operating until the end of calendar year, so Q3 for us under the current model, and we are shifting on January 1st. We'll be live, ready to go on January 1st under the new model. Probably consider three months to really address some or adjust what needs to be. We need to be agile. We know we're going to have to be very reactive and possibly address one issue here and there, but I don't foresee this to go really beyond the first quarter of 2021. As for M&A, certainly you can consider for the next three months focusing on the transition is critical, but this is it. We are also very active on the M&A front.
And we have done for the last four months, we've done four acquisitions, not very sizable, but four. I think it's as many as what we've done in the last four years. And we will do more. So just consider that you will probably see more Wipro, more active on this front in the next month. So I'm not talking about the next two or three years. It's really now, almost now.
Thank you so much. Our next written question is from [Sheep]. What is the level of cost savings that we expect from these changes, and what are the key areas that we will deploy these investments into? A little more detail would be very helpful.
So, I will let the first answer. I will leave it to Jatin. But frankly, they are significant. All I can tell you is that the savings driven by a more efficient model are quite significant. Imagine that we are reducing tremendously the need to have controls and operations at every single point of contact of a P&L. And we all know by experience that adding one P&L is adding a lot of overheads. And so you are definitely reducing tremendously the need for, I would say, functions and control roles, right? Internal roles. Now, where do we want to reinject this? Sector depths. We are going to continue to invest in our sector depths across geographies, obviously in the geographies that we have identified as strategic. We're going to continue to invest in our capabilities. There are capabilities where we want to grow more around ServiceNow.
We want to develop our capabilities around our hyperscalers. We definitely want to continue to reinforce our digital and consulting footprint. We have a strong practice. It has a great impact. The connection of what I would call now the One Wipro, which is our integrated model, will make it even more impactful for the entire organization. But we'll continue to invest into strong consulting expertise. Digital transformation architects, incredibly important. Rajan, you're managing the capabilities. Any other priorities? Oh, sorry. Certainly account executives, very important. As I said, Global Account Executive, Global Senior Account Executive. Relationship with our partners as well. We are choosing very senior leaders to drive this incredibly important relationship. Rajan, any other ideas?
Just, you covered all of them. I would just talk about throwing cybersecurity and product engineering as the two which you have obviously focused on and approved. But you covered the rest.
Thank you.
If you don't mind, I will cover the first aspect on cost saving. And I do want to emphasize that there is a lot of efficiency which will come on go-to-market. First, with three axes earlier now focused with two axes, and two axes, which is a combination of markets and sectors. So that's the first pillar. The second pillar is really the execution axis, where execution axis had many P&Ls which were standing side by side. They were, of course, deep, but they were also side by side. And when you have many P&Ls which are side by side, you create overheads around this P&L because you have somebody managing delivery there, somebody managing certain support functions there. You have a finance leader for that. You have an HR leader for that.
As you collapse some of these P&L and you keep the same depth, or even you go deeper at a project level, right from SMU level to project level, you don't touch the depth, but you just collapse the horizontal nature of P&Ls. You reduce, first, a lot of overheads attached with those structures. Two, you create a great fungibility in the bench. You create great opportunity for reskilling for which you don't need to go out and hire from. So it builds on and creates a sort of multiplier impact whenever you compress or collapse a structure and bring it together. So as Srini mentioned, we do see very meaningful, sizable reductions in those costs that will be very happy to reinvest in going deep as we reduce the spread of those costs.
Thanks, Jatin.
Thank you so much. We would now like to invite Kawal to the stage to ask their question. Welcome, Kawal.
Sure. Thank you. I had a couple of follow-on questions. The first question that I had is that under the new structure, the global account partner with the central role on a lot of decisions. So is that something which is a talent pool which Wipro already has? Is that something which requires a refurbishment upgrade? Any thoughts on that would be welcome. And the second question is on performance management systems. I think there was a great emphasis put on meritocracy and performance management systems. If you can just give a couple of examples of what the changes, that would be very, very helpful. Thank you so much.
So Kunal, let me take the first question. And Saurabh, I'll give you the second one on the performance management. And let's do that. So on the account executive role. So we had account executives, okay? But I think in many cases, account executives were suffering, and they were expressing frustration because they were not really in a position to influence as much as they want. And when I say influence, it's actually a reflection of the point. They felt that they could barely influence where often they had to make decisions. You're in front of the customer.
The customer, he wants you to say, "Work on something." If you're the account executive, you must be in a position to say, "Yes, dear client, we will make it happen." And then work with the team internally to make sure that we are getting orchestrated properly to really deliver on expectations. And I think in many ways, and I will also ask Srini to reflect because obviously he has more experience of this model than me looking at his team. But I think that this team is basically saying, "Give us the power. Hold us accountable.
We are ready to commit to the growth of this relationship, but give us the possibility to really influence and more, make more decisions in the way we hire talent, in the way we invest into an opportunity, in the way we make bold decisions, and in the way we are delivering and assisting the client every day." Srini, what would you want to add?
Sure. I think there are two parts, right? One was the role, and the other one, your question was about the people that you have within Wipro. Srini addressed the role. I think it's a most powerful role and a role that I've not seen in the past, where you can be so agile, so at a speed of decision-making for the customer and bringing the best of Wipro in front of the customer. So that's one part. As far as the people are concerned, I think there are three parts, three categories of that. Number one, we have good people, and I talked about some of the examples where we have scaled the customers both in terms of engagement, winning large transformation deals. So they are actually empowered more, which is good news.
Second, there are people who have been challenged in certain accounts because of the way we are structured, and now with the global account, the seamless delivery and seamless GPL supporting them, I think they will also get enhanced, then there are third part, right, of people who may not be scaling to the new model because it's a mindset change. It's a reset that one needs to go through and capability and competency that will make them successful in their role, and those are the people that we will look for different roles and bring in the best within Wipro or from outside, so that's how I would put it as far as people is concerned.
Yeah. Yeah, it's true. If I can add one thing to what Srini said and really building on what Srini said is in terms of position, if you look at the top 200 people we have in the organization today, only 3% of them are GAEs. So it's not many. The objective is to bring to 25%. So what does it mean? So basically, bring more seniority, more seniority to this role that is such an important role. Saurabh, on the HR?
Yeah. Kawal, thanks for the question on performance management. You'll have to look at it not in terms of just what nuts and bolts we are changing it. It starts from a simpler structure, very clear, crisp KPIs, and then measuring people against them and executing on that. I think these are the three ways we're looking at performance management. Today, with the structural change, the overlaps on responsibility, diffused KPIs, which were leading to a weaker performance management, get taken away. With that happening, when they are very clear outcomes driven, like GBLs on capability and delivery, SMUs on market, we will be in a position to be much more sharper as we look at performance management.
And as Srini said, we will not shy away from taking the bold and tough decisions, either in upgrading or bringing up the best of the talent from the bottom of the organization to the top or changing people where they are not meeting the requirements of the new role. So very clearly, you will see a very clear shift that is happening as we go in. And that started already with the organization change happening with the pyramids collapsing at the top. That itself has led to us to drive a lot of this rebalancing of people from a performance standpoint, from role abolition standpoint, and bringing on clarity. So we will see a change. As I said, it will be an ongoing process of sharper performance management in the organization.
And if I may speak to one more question, thanks for being so generous. It is about the role of a Chief Growth Officer. Is that just a different nomenclature for head of sales? What would be the role of a Chief Growth Officer? Who will report to whom? What will be his KPIs? And why create this role?
Oh, this is an incredibly—so thanks for this question, frankly, Kunal. This is an incredibly important role. Highly strategic. First, it was my surprise that we have a head of delivery managing the delivery. We have a head of finance making sure that our finance are in control. We have a head of human resources or legal or marketing. But when our biggest problem or challenge as an organization is the growth, we have no one across the organization besides me who is only focusing on the growth. And so it's an incredibly important role where we've defined the different levels. And we've discussed that in the presentation, really, about how do we do to really develop the best account executives of the industry, right? How do we develop their career and how do we help them grow in this role, which is such an important role across the organization?
Understand they are absolutely part of the Strategic Market Units in the teams of Srini and his colleagues. But at the same time, we need to drive actions around the organization to really drive a uniform improvement program. If you look at large deals, why is it we have had less large deals in the past that some of our competitors have had? I know the answer. We do not have today a large deal engine organized across the organization. So we do win some large deals, but it's much more relying on someone in an account finding an opportunity and being a hero. So we want to turn it into having an engine that goes after large deals. And the Chief Growth Officer will build this engine working with the Strategic Market Units.
Third is, how do we leverage marketing to have real impact in the way we are connecting with the market and with our clients? We have a strong marketing team. We will connect it even more to the front end, to really the way we sell, having a consistent message, a clear message about who we are, what do we want to deliver, and who can we be for the client. In the way we are developing our relationship with partners, we have great relations with some of the partners I mentioned earlier and others as well. In fact, I'm even convinced that right now there's a bigger appetite from those companies, often very large, to work with companies like Wipro. Because at the same time, we love technology and innovation, and we have the agility that many people recognize from us.
And we have the ambition and the willingness to really partner and really go to clients together. So we're going to manage actively and with high ambition this ecosystem of partners. And the Chief Growth Officer will have this as a mandate as well. So this is quite a significant role that was missing in our organization and that we will soon have filled.
Thank you. I just have one correction, Thierry. My name is Kawaljeet, not Kunal. Don't dismiss me as [audio distortion] . Thank you so much.
Okay. My apologies.
Thank you so much for your question. This brings us to the end of our Q&A session. We would like to thank you all for taking the time and joining the event today. In case we could not take any of your questions due to time constraints, please feel free to reach out to the Investor Relations team, and we would be happy to clarify. Have a nice day and stay safe. Thank you.