Wipro Infotech's Pivot From Computer Hardware to R&D Services for IT

The Indian minicomputer policy of 1978 licensed computer manufacturing to the private sector. Wipro obtained a license, and set-up Wipro Infotech as a division in 1980–81 to manufacture minicomputers. One of their strengths was a strong in-house research and development (R&D) capability for designing minicomputers. The 1984 policy made it easier for multinational computer firms to tie-up with Indian firms and sell computers in India. Wipro Infotech tied-up with Sun Microsystems and other multinationals. This meant an uncertain future for Wipro Infotech's minicomputers and their R&D capability. An alternative was to redeploy this capability to provide R&D services for multinational information technology (IT) firms. The Software Technology Parks of India (STPI) policy introduced in 1990 made offshore-driven Indian IT services—both R&D and software services—exports attractive. Wipro Infotech leveraged their R&D capability and the STPI policy to pivot from computer hardware to R&D services.