Wipro Forms Dedicated AI Unit

Wipro Limited is launching a dedicated AI-Native Business & Platforms Unit, effective April 1, 2026.
Nagendra Bandaru has been appointed CEO to lead this strategic initiative.

Key Announcement

Wipro announced the establishment of a new AI-Native Business & Platforms Unit to strengthen its artificial intelligence capabilities. The unit will begin operations on April 1, 2026. Nagendra Bandaru has been appointed CEO and will lead the division in developing enterprise-grade AI solutions and new AI business streams. It will integrate Wipro Intelligence's platform assets, such as NetOxygen and CROAMIS, to drive scalable growth. Kanwar Singh will become the new President and Managing Partner of Technology Services Global Business Lines.

Strategic Importance

Forming this dedicated AI unit highlights Wipro's commitment to using artificial intelligence as a key growth driver in the fast-changing IT services market. This strategic shift focuses on accelerating agentic AI solutions and improving client value. This move follows a broader industry trend where AI is central to digital transformation and client services.

Company's AI Journey

Wipro has invested in AI for years, launching its 'Wipro ai360' ecosystem in July 2023 with a $1 billion investment. In April 2025, Wipro realigned its Global Business Lines, with Bandaru heading the Technology Services division focused on AI solutions. Bandaru brings extensive experience from leading Wipro's Technology Services, which generates over $7.2 billion annually. Kanwar Singh joins as Technology Services GBL head, bringing over 30 years of experience from Accenture.

Operational Changes

• A new unit specifically for AI-native solutions and platform development.
• Increased capacity to develop and scale new AI business streams.
• Faster delivery of advanced, enterprise-grade AI solutions to clients.
• Stronger leadership in AI and tech services through key appointments.
• Integration of Wipro Intelligence platform assets to boost growth.

Potential Challenges

• Execution Hurdles: Wipro has historically struggled to convert bookings into revenue, a challenge known as 'execution debt,' with recent revenues declining year-over-year.
• Competition: The IT services sector is fiercely competitive. Rivals like TCS and Infosys are also pushing AI strategies, which can lead to pricing pressure.
• Client Spending: Clients remain cautious, prioritizing cost-saving measures and potentially delaying major AI transformation projects.
• Integration: Past acquisitions, such as Capco, have faced delays in realizing synergy revenue, suggesting potential integration complexities.
• Valuation: Investor sentiment is cautious, with Wipro's stock trading near 52-week lows and a lower P/E ratio than some competitors.

Competitive Landscape

Wipro's peers, including TCS, Infosys, and HCLTech, are also investing heavily in AI. TCS aims to be the largest AI-led services company globally, reporting $1.8 billion in annualized AI revenue run rate by Q3FY26. HCLTech recently reported over $100 million in Advanced AI revenue. Infosys has seen positive stock reactions to its AI partnerships. The global AI market is rapidly growing, expected to reach nearly $2.4 trillion by 2032, making it a highly competitive space.

Financial & Investment Context

Wipro's annual revenue for 2025 was about $10.428 billion, a 3.18% drop from 2024. (TTM ending Dec 31, 2025: $10.281 billion).
Its IT Services segment revenue for Q2 FY26 was $2,604.3 million, up 0.7% sequentially but down 2.1% year-over-year.
Wipro has pledged $1 billion in AI capabilities over three years as part of its Wipro ai360 initiative launched in July 2023.

Future Focus

• Performance and revenue contribution of the new AI unit.
• Client adoption of Wipro's agentic AI solutions.
• New unit's growth compared to AI initiatives by peers like TCS and Infosys.
• Wipro's success in overcoming execution challenges and converting bookings into revenue.
• Management outlook on AI service demand and competitive standing.
• Further leadership appointments or restructuring in the new unit or related areas.