One of the leading information technology (IT) companies Wipro has reportedly won an outsourcing contract worth $1 billion from Alight Solutions.
Bengaluru-based Wipro purchased Alight Solutions’ IT business for $117 million on Friday, and is in the advanced stages of negotiating the agreement that will possibly expand over seven years and $140 million in annual revenue per year.
According to the sources, it has been stated that the following deal seeks to fetch $70 million to Wipro along with the additional revenue this year. However, Wipro has not included growth from this deal in the 2.7% currency forecast for the current quarter. The report also mentioned that the company might reveal the contract in the September quarter results.
Wipro is an integrated corporation that provides a range of products, solutions and services in systems, software, consumer care, healthcare, lighting and infrastructure technology. The company comes amongst the ten most admired companies in India. Through constant innovation and a people-first attitude, Wipro strives to assume leadership positions in all our businesses in the new millennium.
This contract is especially valuable because it comes at a time such deal wins have been few and far. Experts have stated that big-ticket contracts are getting cut in size and duration because clients seek “value proposition” from IT vendors.
Wipro has been battling with client-specific issues recently, which have had an impact on the results. However, in the June ended quarter, it beat analysts’ estimates on profit and revenue assisted by enhanced performance in its BFSI business. This will be one of the greatest deals for Wipro after almost four years.
Tata Consultancy Services has signed three similar large agreements in the past year. As digital deals become the norm, contract sizes have become smaller and thus, large deals are being signed over longer time periods.