Partnership likely to fetch Wipro $70 million in additional revenue this year
Wipro has won a $1 billion outsourcing contract from Alight Solutions, the company whose captive IT business it bought for $117 million on Friday, a news report has said.
The third-largest IT firm is in the final stages of negotiating the deal that is likely to stretch over seven years and $140 million in annual revenue per year, according to a report in Mint.
Quoting two people familiar with the deal, the report said the partnership is going to fetch Wipro $70 million in additional revenue this year.
Wipro, according to the paper, has not included growth from this deal in the 2.7% currency forecast for the current quarter.
The report also said that the company may disclose the deal in the September quarter results.
Wipro has been struggling with client specific issues off late, which have impacted results. In the June ended quarter, however, it beat analysts’ estimates on profit and revenue helped by improved performance in its BFSI business.
This will also be a large deal for Wipro after almost four years, according to the business daily.
As digital deals become the norm, contract sizes have become smaller so large deals are being signed over longer time periods.Tata Consultancy Services has signed three such large deals in the past year.