Wipro PESTEL Analysis

University / Undergraduate
Modified: 2nd Nov 2020
Wordcount: 883 words

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Some of the political factors affecting the operations of Wipro include the following. The first one is liberalisation. For example, the New Economic Policy introduced in the country is making the Wipro excel in the overseas markets, thus, offering a variety of benefits (Sharma, 2011). For example, the India's IT sector developed tremendously when liberalisation took place. The company was able to go global and expand the business even further. The second factor relates to government policies supporting free trade (Wipro Ltd., 2017). The IT industry has in the past grown under unfavourable conditions. However, with free trade, favourable conditions exist for Wipro to develop (Wipro Inc., 2016). The government plays a critical role is developing and strengthening the software industry.

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Many times, the success of a company is dependent on the prevailing economic conditions. In particular, the following factors affect Wipro Inc. First, increased foreign investment is stimulating business growth (Sharma, 2011). For example, in the recent past, the company had received lots of foreign investments in software technology parks. This alone has ensured that future growth is taken into consideration in the coming years. Second, economic stability of the country has been one of the factors affecting the growth of the company (Wipro Ltd., 2017). Many firms including Wipro are keen on changes in the local and global economy. This is because; economic changes affect pricing strategy of the firm, and hence, its profitability (Wipro Inc., 2016). Third, change in economic policies: for example, many changes in economic policies in the country have enabled Wipro to focus on its growth strategy (Wipro Inc., 2016). The software industry has been strengthened by these changes, and it is possible to assert that the company has been and will continue to benefit from fair economic policies (Sharma, 2011). The fourth factor is the change in exchange rate. High exchange rates have enabled Wipro to take advantage over other industry players (Sharma, 2011). For example, this has made it possible for Wipro to offer products and services at much lower costs as compared to its rivals.


Technologies have shaped up businesses in the 21st century, and there are a number of social factors that continue to remain obstacles to the full implementation of IT systems (Wipro Ltd., 2017). Among the social factors likely to affect market operations of Wipro, including public acceptance of self-service models, resistance, digital divide or even the influence of other cultures (Sharma, 2011). For all these reasons, immense intellectual capital is needed.


Technological environment is essential for this company and the IT industry as a whole (Wipro Inc., 2016). The technological innovations, for example, drive Wipro to get new dimensions across the industries (Sharma, 2011). For example, organisations utilise innovations technologically like e-commerce services. However, the following factors have remained critical to Wipro. First, easy access to different business customers. While it is true that clients are key stakeholders of a company, getting them can extremely be a challenge (Sharma, 2011). However, as for Wipro, its technological innovations have made it easier to get into contact with the clients. Second, technology offers comfort to overseas customers and suppliers (Wipro Inc., 2016). Following the latest development in technology, it is easy for customers irrespective of their locations to access the business (Sharma, 2011). The same is true suppliers.


Being responsive to the current environmental changes is necessary. The company is keen on adhering to the environmental standards to achieve business sustainability (Wipro Inc., 2016). The green technology, for example, means that the company cares for the environment.


Wipro Technologies Inc. has been very fast in reacting to legal, environmental changes. Protecting the environment is a responsibility of any company, and therefore, the Wipro keeps on operating within the environmental standards (Sharma, 2011). As an IT company, coming up with new inventions that increase environmental sustainability is ideal. The other legal factor facing the company relates to employment law (Wipro Inc., 2016). The law defines how the workers should be treated. Key issues addressed in this law include the minimum wage rate, employee benefits, mode of operation and dismal procedures.

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