Understanding the Stakeholder - Supply Chain

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 more than 20,000 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.

Facility management requires a diverse set of support services ranging from hospitality, housekeeping, catering, equipment maintenance among others and for this we have moved to a an IFMA arrangement (Integrated Facility Management Services). A significant number of contract manpower is employed as part of these facilities.

Wipro actively encourages diversity in the supply chain and sourcing from the local economy. Wipro is an Equal Opportunity employer and strongly advocates the same through its supply chain by encouraging supplier diversity. Qualified enterprises owned by person with disability or women are identified and engaged with. The spend from these suppliers constitute 3% total supplier spend (as declared by supplier and not verified). Local sourcing reduces costs, provides local employment benefits and reduced environmental footprint in sourcing. 45 % of suppliers spend is from suppliers based in India.

Supplier Segmentation

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.