Way to go, Wipro!
It’s not quite there yet, but the goal is certainly within reach. One of India’s largest IT solutions providers, Wipro Technologies, is taking on the likes of IBM and Accenture in its effort to be included among the largest and most successful technology services companies in the world. Restructuring Wipro was considered the most important step in becoming a global giant, driven by the goal towards improved customer orientation. During the past few months, Wipro separated itself into several subsidiaries by product line: telecommunications, engineering, financial services, etc. Each subsidiary brings in about $300 million in annual earnings and is self-sufficient with their own accounting books, personnel and administrative functions. Wipro shifted from a centralised to decentralised management system. All responsibilities for growth lay with the management of each entity. “We tried to de-layer the organisation and empower our business leaders with a much higher degree of growth responsibility,” said Premji. “We removed an entire layer [of executives]”.
Wipro was successful in empowering business leaders because of:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → De-layering of the organisation
Option (1) Organization centralisation — Incorrect. Centralisation keeps authority at the top, which is the opposite of empowering leaders. Wipro decentralised.
Option (2) Subsidy unification — Incorrect. The passage speaks of subsidiaries, not subsidies, and nothing was unified.
Option (3) Subsidy fund utilisation — Incorrect. No subsidy or fund is mentioned in the passage.
Option (4) De-layering of the organisation — Correct. De-layering means removing one or more levels of management from the hierarchy. Premji says Wipro removed an entire layer of executives to give its business leaders much more responsibility for growth. With fewer levels above them, the leaders can decide without waiting for approval from above.
Note: The passage is the NCERT case study ‘Way To Go, Wipro!’, which has been reproduced by NTA in the exam. NCERT (2026-27 Edition): “Wipro shifted from a centralised to decentralised management system. All responsibilities for growth lay with the management of each entity. “We tried to de-layer the organisation and empower our business leaders with a much higher degree of growth responsibility,” said Premji. “We removed an entire layer [of executives]”.” |