WPP scales up investments in India amid strategic growth plans

WPP is intensifying its focus on India with a significant expansion of its Global Delivery Centre (GDC) operations. This initiative comes as the company doubles down on India as a key growth market and a hub for technological and creative innovation.

Following the launch of a new campus in Chennai last month, WPP’s third in the country after Mumbai and Gurugram, the company is making clear its commitment to fostering growth in a region that has emerged as its fifth-largest global market.

The new campus in Chennai spans 62,000 square feet and is set to accommodate 330 employees initially, with plans to expand capacity to 650 by mid-2025. Strategically located in RMZ One Paramount, the facility represents a broader push to create collaborative, tech-enabled workspaces. With additional campuses planned for Bangalore and Coimbatore, WPP is building on its existing presence, which includes a workforce of over 11,000 professionals in India.

Prashant Mehta, an experienced digital transformation leader, has been appointed as the managing director of the GDC. Mehta will oversee the global growth of the centre, which employs 10,000 people worldwide, with a significant portion of its talent based in India.

The GDC is integral to WPP’s business transformation efforts, offering specialised capabilities in cloud modernisation, generative AI, virtual reality (VR), extended reality (XR), and product engineering. These services complement WPP’s traditional expertise in media, content, customer experience (CX), commerce, data, and design.

Mehta brings a wealth of experience to the role, having previously served as global managing director for Accenture Song, where he led generative AI-led asset strategies. His prior roles include senior leadership positions at Dentsu Creative and Experience and Publicis Sapient.

Reflecting on his new position, Mehta commented, "It is an honour to lead the WPP GDC, which has been built to evolve with the changing demands of the agency’s clients. I look forward to working with our integrated teams as we harness AI and creativity to transform how we deliver growth for our clients."

WPP CEO Mark Read emphasised the strategic importance of the GDC, stating, "Our GDC enables agency teams and their clients to tap into specialist expertise and new capabilities. It is underpinned by WPP Open, our AI-driven operating system for marketing transformation, fuelling growth and connecting the dots across our business."

CVL Srinivas, WPP’s country manager for India, also highlighted the region's role in driving global business transformation. "As we look to drive further growth and transformation in and from India, we are excited to welcome Mehta onboard. The expertise of our team in India makes it the prime location to power our clients’ needs with a scaled world-class GDC," he added.

WPP’s investment in India comes at a time of mixed financial performance globally. The company recently revised its 2024 growth forecast after a modest decline in like-for-like revenue (excluding pass-through costs), which fell by 0.5% to $3.6 billion in Q2. However, the Asia-Pacific region, and India in particular, emerged as strong performers. India recorded a 9.1% revenue increase in Q2, though growth slowed to 2.3% in Q3.

Globally, WPP posted a 1.4% revenue increase in Q3, with like-for-like revenue adjusted for pass-through costs growing by 0.5%. While markets like North America, Western Europe, and the UK saw marginal gains, the company faced significant challenges in China, where revenues dropped by 21.3%.

The company’s top 10 clients reported a 7% revenue increase in Q3, with notable contributions from the automotive, financial services, travel, and consumer packaged goods (CPG) sectors. Technology, which had previously struggled, showed signs of recovery with a 1.3% growth in Q3 after a 5.1% decline in H1.

Despite these positives, other sectors like healthcare and retail continued to face headwinds, largely due to client attrition in previous years. These uneven results underline the importance of WPP’s investments in growth markets like India, which offer opportunities to offset challenges in other regions.

WPP’s decision to prioritise India aligns with the country’s position as a rapidly growing advertising market and a hub for digital innovation. However, the company faces challenges in ensuring that its expanded presence translates into sustainable growth. The launch of its Chennai campus and the scaling of its GDC operations are significant steps, but they come amidst a backdrop of global uncertainty and evolving client demands.

WPP’s strategy hinges on leveraging India’s technological talent and creative expertise to enhance its global offerings. The GDC’s focus on emerging technologies like generative AI and VR positions the company to capitalise on shifting industry trends. However, the success of this approach will depend on WPP’s ability to navigate challenges such as talent retention, operational integration, and aligning its global and regional priorities.

The company’s efforts in India reflect a broader trend among multinational corporations to invest in high-growth, innovation-driven markets. As WPP continues to expand its footprint, the Chennai campus serves as both a symbol of its ambitions and a test case for its ability to deliver value in a competitive and rapidly evolving industry.

By focusing on India as a strategic growth driver, WPP is betting on the region’s potential to shape the future of advertising and marketing. The company’s success will ultimately depend on its ability to balance innovation with operational efficiency, ensuring that its investments in India deliver long-term value both locally and globally.