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Wipro Technologies Essay

1780 words - 8 pages

Executive Summary:Wipro Technologies, India's largest IT services company and one of the world's leading innovation companies, in conjunction with the Harvard Business School, has been experimenting with a new software service delivery model that draws on the principles of the Toyota production system and "lean" manufacturing. Wipro is experimenting with a new software service delivery model that draws on the principles of the Toyota production system and "lean" manufacturing. The case study addresses the advantages and disadvantages of software outsourcing and how to mitigate the effects of, for example, lock-in and hijacking. The case study also explores how Wipro has used the Factory ...view middle of the document...

The best practices will be maintained in a knowledge repository and used across migration projects.Savings: As factory model insist on reuse and learnings from past, a tremendous amount of cost saving is achieved.Risk Identification: As expert's team analyzes the gaps and learnings of previous migrations, set of all possible risks will be identified at the earlier stage with a detailed mitigation plan.Pros and cons of offshoring:Pros:In analyzing these issues, it is useful to distinguish between offshoring through vendor partners and in-house offshoring.Most of the reasons for outsourcing are well known: "Offshoring also helps a company be closer to its global customers, thereby providing appropriate offerings to its regional market and ensuring speedier problem resolution. Developers and support personnel in the relevant geographies have a better understanding of customers' needs, regulatory compliances and regional preferences, and can better implement the product or provide the service."Cons:Outsourcing results in lower customer satisfaction - one complains about the language skills of the vendor's employees and gives examples of a lower quality of service in a particular call center.The cost savings of outsourcing are counteracted by even greater productivity losses.There is a high level of offshoring failure.Recommendation and Analysis:Continue to apply six-sigma concepts and methodologies to ensure continuous optimization in key process areas. Doing this will bring about a focused customer-centric and data-driven paradigm to product and process quality.•Improves customer satisfaction measured through an annual customer satisfaction (CSAT) survey.•Significant improvement in the performance of software products developed for customers through application of Wipro's DSSS methodology based on project-specific needs.•Reduction in the field errors in software projects.•Significant decrease in installation failures in the hardware business.•Significant year-on-year financial savings through reduced rework and reduced cycle time.•Increase in cost benefits translated to customers.Software development is people dependent. Lean process is better when applied for industries such as Toyota. Toyota involves mass production and uses blue collar employees who can be paid less compared to white collar employees. Software development for individual projects does not involve mass production like Toyota or even Microsoft Office wide releases. Toyota's production business involves a lot of raw materials which can be bought at bulk for cheaper price through their suppliers. But Wipro does not have the need for raw materials and therefore do not have the opportunity to cut down on costs in that arena. It is more of a service based business. To come up with good products, you basically need top talents. Top dollars attract top talent.Make sure Wipro employees are working efficiently and the hours are not wasted. Quality work should...

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