The supplier ecosystem of Wipro can be broadly categorized into two broad heads. One category can be called as our ‘primary supply chain’ which comprises of our contract employees involved in core delivery of IT Services and Solutions. Such employees typically have gone through a minimum graduate degree qualification and are experienced in specialized technology and consulting skills aided by an intensive in-house capability building program. We considered them as part of our supply chain as they not engaged directly employed by Wipro. Our workforce currently includes 20,930 contract employees.
The second component of our supply chain is ‘product or services supply chain’or ‘secondary supply chain’ which comprises of suppliers who provide products, business support services and utility management services for our operations. The list of categories of procurement which form the ‘secondary supply chain’ is given below.
Operations and facility management require a diverse set of support services ranging from hospitality, housekeeping, physical security, landscaping, transport, catering, to equipment maintenance among others and for these services we largely rely on outsourced facility management service providers. Recently, we have transitioned to a model where for large locations, the entire responsibility for facility services is outsourced to a single property management organization (Integrated Facility Management Services - IFMS). A significant number of contract manpower is employed as part of these facilities.
People Numbers for Secondary Supply Chain
Wipro actively encourages diversity in the supply chain and sourcing from the local economy. At an aggregate level, nearly 75% of our suppliers are based in India; by value 66% of the procurement for the year was from India based suppliers. For 2015-16, supplier spend from women and minority owned enterprises contributed to 5.4% of total central procurement spend for India operations. Diversity classification is based on supplier self-disclosure and is not verified.
Wipro has a formal process to identify suppliers who are strategic to its sustained business performance. The suppliers are classified into two categories: Strategic suppliers and Tactical suppliers. The Global Procurement Group finalizes the supplier categorization based on annual performance evaluation. Strategic Suppliers are suppliers which are essential for the success of strategic business outcomes for Wipro. Sustainability or other serious issues with such suppliers may seriously dent Wipro’s ability to meet its’ objectives. Tactical Suppliers account for only a small part of the overall spend of Wipro.