Wipro Bags .` 2,400-crore Deal from Takeda Pharma

The Economic Times - - Companies - OUR BUREAU

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.

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