Wipro bags $300 million contract from ICICI Bank

Under the deal, which is expected to be completed by September 30, the IT major will offer a range of services through its artificial intelligence platform Wipro HOLMES.

Moneycontrol News

September 04, 2019 / 20:25 IST

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Wipro has bagged a seven-year contract worth $300 million from ICICI Bank. Under the deal, which is expected to be completed by September 30, the IT major will offer a range of services through its artificial intelligence platform Wipro HOLMES.

The Bengaluru headquartered company said in a regulatory filing that it would acquire Vara Infotech, which is a service provider to ICICI Bank. In the statement, the company said it will purchase Vara Infotech's existing contracts, assets and liabilities through a business transfer agreement of Rs 321 crore. The business accounted for about Rs 221.5 crore for FY19.

As a part of the agreement, Vara Infotech's 3,800 employees will be taken on board by Wipro.

Banking is one of the largest portfolios for Wipro and accounts for about 31 percent of total revenues. In the quarter ended June 30, 2019 the company’s growth declined 1.3 percent sequentially due to the macro-economic challenges faced by banking, financial services and insurance (BFSI) sector.

The $300 million project is a boost that Wipro needs as the sector continues to remain globally. Moreover, the merger of various banks recently announced by Finance Minister Nirmala Sitharaman will give raise to digital transformation opportunities for IT majors in India.