Wipro to quit PC manufacturing business,focus on IT services

Last month,HCL Infosystems said it will phase-off its manufacturing business in next few years.

Written by Press Trust Of India | New Delhi | Published: December 5, 2013 12:49 am

After HCL Infosystems,another homegrown PC maker,Wipro,has decided to quit manufacturing of computers and servers to sharpen its focus on IT solutions and services business.

The country’s third largest software services player,which started marketing indigenous personal computers in 1985,has manufacturing units in Kotdwar (Uttarakhand) and Puducherry. The two facilities have a combined capacity of about 2.20 lakh units of desktops,laptops and servers.

“The market is changing and so are the customer needs. Consumers are looking at smart devices like tablets while the enterprise space has seen more commoditisation (of IT).

“Wipro has decided to strengthen its position as system integrator (SI) and increase its focus on IT solutions and services,” Wipro general manager and business head (Systems and Technology) S Raghavendra Prakash said.

He declined to comment on the number of employees in the PC manufacturing business. However,sources suggest the number is lower than 2,000.

Wipro will re-deploy all the affected employees in the company,Prakash said adding that the company will continue to have a presence in the hardware business offering solutions in large integrated deals.

Last month,HCL Infosystems said it will phase-off its manufacturing business in the next few years to improve margins and increase organisational efficiency. Revenues for PC makers have been under pressure as newer devices like tablets and phablets are finding more takers. Also,most PC makers,in recent times,in the country have incurred losses due to rupee fluctuation.

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