Wipro Bags .` 2,400-crore Deal from Takeda Pharma
Wipro has won an over $400 million (.`2,400 crore) deal from Takeda Pharmaceuticals, under which the Bangalorebased IT company will develop and support IT requirements of the largest Japanese pharmaceutical company. The multi-year deal, described as a “strategic partnership” to provide information technology infrastructure to the Japanese pharma firm, will add to Wipro’s revenues immediately, said a senior executive of the company. “We are thrilled to partner with Takeda and it has many firsts for the company,” said Sangita Singh, chief executive of the Healthcare and Life Science Business Unit at Wipro. “From Continental Europe and Japan standpoint, it is the largest,” said Sangita. The company would own the infrastructure and provide technology and people to Takeda as part of the deal. Wipro competed with both global multinationals, including IBM and Accenture as well as homegrown IT services firms like TCS, to win the deal.
The deal would give a boost to Wipro’s Healthcare and Life Sciences unit, which accounts for about 10.3% of the company’s $6.6-billion revenues from IT services. For the quarter ended March 2014, the healthcare and life sciences unit grew an impressive 14.3%.
Globally healthcare majors, including Pfizer and Johnson & Johnson, are some of the biggest customers of Indian’s IT services firms, which had a good run over the past 12 months. While Infosys’ healthcare unit saw a 4.7% growth, the healthcare and life sciences unit at TCS expanded 5.8%.
However, Nasdaq-listed Cognizant’s healthcare unit expects growth in its US healthcare business to remain slow this quarter, hurt by lower spending by customers who are adjusting to healthcare reforms. Wipro’s major deal win comes in a sector that is recognised as fairly “domain intensive business” and also comes at a time when most pharma companies are reeling under a lot of cost pressure.