Wipro, a company you never heard a decade ago, is the largest technology company in India. It's founder Azim Hasham Premji inherit a palm oil refinery factory from his father at the age of 21. He acquired IBM business in India when IBM was force out of business by the Indian government.
He later shift his strategy from hardware business to software business. He able to close an outsourcing deal with the US giant General Electric when he is a no body. Jack Welch, the ex-chairman and CEO of General Electric write the incident when he first met Azim Premji in his biography. Azim Premji leverage on the deal he get from General Electric to get deal from other US multinational and become the largest technology company and richest man in India at very short period of time. His close relation with the largest company in the world also let him learn how to manage and operate a multinational company.
Wipro using merge and acquisition (M&A) as grow strategy.
In order to gain a foothold in call centre business. Wipro acquired the largest call centre in India. This enable him to compete with Accenture ,IBM and EDS.
Later, Wipro acquired a financial data management company in US. This move enable him to close some deal in financial data management business even when compete with company like Oracle.
Which company would be the likely Wipro of Malaysia?
Our palm oil plantation group, IOI and KLK, never made Information technology as part of their core business. IOI do invest in high-tech business during dotcom boom. But such business no longer made the news on mainstream media again.
KLK at one point of time also employed corporate planner to explorer what business can be invest in with it hugh cash reserve. Until now, they never made information technology their core business.
A company that leverage on IBM's technology in Malaysia is Mesiniaga Bhd. Another company is Penang base e-Business Sdn Bhd founded by a printer Mr Chan Hong Saik. e-Business Sdn Bhd are in financial data management segment. Both company are in partnership to form Niaganet.
In order to create the scale of Wipro. Mesiniaga Bhd and e-Business Sdn Bhd must merge with Malaysian largest call centre Scicom.
The merged entity must be able to close a deal with General Electric if the company want to become Wipro of Malaysia. General Electric has been very aggressive in Malaysia recently.
On 15 June 2005, Air Asia award an engine services and maintenance agreement to General Electric.
On 17 June 2005, GENERAL Electric International (GE) is currently in talks with several banks for possible joint-venture arrangements to gain a foothold in the Malaysian consumer finance business after terminated discussions with Southern Bank Bhd.
On 18 June 2005, GE ENERGY (GE), a unit of US-based conglomerate General Electric Co, is in talks to supply Petroliam Nasional Bhd (Petronas) with turbo compressors which convert natural gas into liquid form to promote cleaner fuel production.
However, to close a deal with General Electric is not an easy job as most of General Electric back room operation has been outsourcing to India.
Wipro also hire Vivek Paul, President and CEO of GE'’s medical equipment to become it Vice Chairman and CEO. Vivek Paul also a specialist in Six Sigma.
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