IT services giant Wipro Ltd. (NYSE: WIT) announced the resignation of CEO and Managing Director Thierry Delaporte on April 6. The company also reported that its board approved the appointment of Srinivas Pallia as the new CEO and managing director, effective April 7.
Wipro said Delaporte is stepping down after four years to “pursue passions outside the workplace.”
Delaporte sent a letter of resignation to Wipro on April 5.
“I am writing to resign from my position as CEO and MD of Wipro Ltd, effective April 6, 2024. It has been an incredible honor, and I am grateful for the opportunity to have played a role in the growth and success of Wipro,” he wrote. “During my tenure as CEO and MD, we have witnessed a significant transformation within the company that has not only driven financial growth but has also positively impacted our associates, clients and shareholders.”
Delaporte will work with Pallia through May 31 to ensure a smooth transition.
Experts say that the timing is a surprise but that this announcement was expected given an exodus of senior leadership at the company that has been criticized for underperformance, The Economic Times reported.
Delaporte served as CEO of Capgemini before joining Wipro in June 2020.
Pallia joined Wipro in 1992 and has held a number of leadership roles, including president of the company’s consumer business unit and global head of business application services. Most recently, Pallia was CEO of Wipro’s largest market, “Americas 1.” He lives in New Jersey.
“I am excited to build on the strong foundation established by Thierry and lead Wipro on its next growth trajectory,” Pallia said in a press release. “I have built my entire career at Wipro, and I have a deep appreciation of our 78-year history and our incredible team of more than 240,000 associates.”
Pallia will report to Wipro Chairman Rishad Premji.
“Srini is an ideal leader to lead Wipro at this pivotal moment for our company and industry,” Premji said in a press release. “Over the past four years, Wipro has undergone a major transformation under the most challenging external conditions. Srini has been an integral part of this journey.”
Wipro also announced on April 4 that it struck a deal to acquire a 45% stake in Women’s Business Park Technologies Ltd., an IT services provider headquartered in Riyadh, Saudi Arabia.
Women’s Business Park Technologies was incorporated as a joint venture between Wipro Arabia Ltd., which held a 55% stake, and Princess Nourahh Bint Abdulrahman University’s endowment company, which held a 45% stake. The company had revenue of 32.8 million Saudi Arabian riyals (US$8.7 million) in its most recent fiscal year.
Wipro is paying 10.4 million Saudi Arabian riyals (US$2.8 million) for the stake. It’s estimated the transaction will be complete in the quarter ending June 30.