Wipro Creates New AI Unit to Build "AI-Native" Businesses by End of 2026

Wipro has launched a new AI unit. This unit will combine current platforms and create new AI-driven businesses, aiming for faster growth.

Wipro Limited has established an AI-Native Business & Platforms Unit, a move signaling a significant strategic shift. This new entity will consolidate existing platform assets and incubate new AI-led business streams through an "invest-build-partner" approach. Nagendra Bandaru has been appointed CEO of this unit, while Kanwar Singh joins as President and Managing Partner of Technology Services GBL. The company intends to develop enterprise-grade agentic AI solutions and drive client outcomes through consulting-led, AI-driven strategies.

Wipro (WIT): A Quiet Move That Could Redefine Its AI Ambitions - 1

This consolidation aims to position Wipro for scalable growth and sharpen its competitive edge in the increasingly AI-centric IT services landscape. The unit will collaborate closely with Wipro Ventures and its partner ecosystem to foster innovation and create new revenue streams. This initiative follows shortly after reports of disruptions in SaaS stocks linked to advancements in AI models like Claude, suggesting Wipro's move is both a reaction and a proactive strategy in a volatile market.

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Underlying Currents of AI Ambition

Wipro's stated objective for this new unit is to achieve sustained dollar revenue growth, mitigate attrition in high-demand AI roles, and scale its AI offerings profitably. This pivot aligns with broader industry trends where enterprises are increasingly prioritizing AI for cost optimization and competitive differentiation. The company has previously highlighted initiatives like Wipro Intelligence, a unified suite of AI-powered platforms and solutions, which it has identified as central to its growth strategy. Examples of tangible impacts from this suite have included solutions like Auto Cortex for the automotive sector and AI applications for BFSI and healthcare.

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In prior efforts, Wipro reported building 200 AI agents in the preceding quarter. The company's global CIO has previously articulated a philosophy of "systematic, silent, and at scale" AI adoption, emphasizing an operational and technical roadmap over mere buzzwords. This approach contrasts with more overt, perhaps louder, AI announcements seen elsewhere.

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Context and Challenges

The establishment of the AI-Native Business & Platforms Unit comes against a backdrop of competitive pressures. Reports indicate that rivals such as Tata Consultancy Services (TCS) and HCL Technologies have, at times, outpaced Wipro in metrics like revenue per employee and AI pipeline execution. Structural challenges, including employee attrition in specialized AI roles and currency fluctuations, remain factors requiring ongoing attention.

A significant recent engagement saw Wipro leverage its WINGS Operations AI platform, part of Wipro Intelligence, to transform the IT and cybersecurity operations for HanesBrands. This collaboration aims to streamline operations, enhance regulatory compliance, and improve the overall IT experience, with an expectation of cost reductions. This deal exemplifies Wipro's strategy of integrating its AI capabilities into managed services models for transformative client outcomes.

Frequently Asked Questions

Q: What has Wipro announced regarding its AI strategy?
Wipro has formed a new AI-Native Business & Platforms Unit. This unit will bring together existing platforms and create new AI-led business areas.
Q: Who will lead the new AI unit at Wipro?
Nagendra Bandaru has been appointed as the CEO of this new unit. Kanwar Singh will be the President and Managing Partner of Technology Services GBL.
Q: What is the main goal of Wipro's new AI unit?
The unit aims to develop enterprise-grade AI solutions and help clients achieve better results through AI-driven strategies. It also aims for sustained revenue growth and to reduce employee turnover in AI jobs.
Q: How does this new unit fit with Wipro's past AI efforts?
This unit builds on previous work like the "Wipro Intelligence" suite and the creation of AI agents. For example, Wipro used its WINGS Operations AI platform for HanesBrands to improve IT operations and cut costs.
Q: What challenges does Wipro face in its AI ambitions?
Wipro faces competition from companies like TCS and HCL Technologies. It also needs to manage employee departures in AI roles and deal with changes in currency values.