Wipro signs $1.6 bn contract with Alight Solutions, its biggest
Wipro Ltd has won its largest information technology (IT) outsourcing contract, valued at $1.6 billion over 10 years from Alight Solutions, the former benefits administration and human-resources outsourcing business of Aon Plc.
Starting next year, Wipro is assured of at least $150 million in annual revenue, a shot in the arm for Abidali Neemuchwala, who since taking over as chief executive officer in February 2016 has been trying to put the Bengaluru-based company back on the growth path.
Mint first reported about the mega deal (more than $1 billion) win by Wipro in its edition dated July 23, when the two companies were in final stages of closing the deal.
“For now, Wipro and Alight are in final stages of closing this partnership, and the duration of the contract could be extended beyond seven years, depending on the final negotiations currently underway between the two firms,” the Mint report said.
A 10-year partnership with $150-$160 million in annual revenue will translate into $1.5-1.6 billion over the duration of the contract, more than the $1.1 billion order Wipro won from Canadian logistics firm ATCO in June 2014.
“We are delighted to be chosen by Alight as their long-term strategic partner in their enterprise transformation journey to bring digital experiences and offerings to employees and employers globally,” said Abidali Neemuchwala, CEO. “This is a testimony to the capabilities we have built through our strategic investments in Wipro Digital, cloud platforms and cognitive platform Wipro Holmes”
Wipro’s deal win is also significant because most outsourcing deals are shrinking both in value and duration, as firms ranging from banks to retailers cut their budgets to maintain back-end technology and plough the savings into work that can help them improve business operations.
“It is a very strategic deal... there are very few companies which offer this full suite of services, under which company’s IT infrastructure is offered, and offerings through BPS and application services is given. Cloud enablement, company’s consulting practice and deployment of Holmes platform will be also seen,” a Wipro executive, on condition of anonymity, told Mint earlier.
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