Wipro bags multi-year automotive software engineering contract from Marelli
The company did not disclose the deal value. However, analysts expect it to be a large deal
September 08, 2020 / 11:41 AM IST
Bengaluru-based IT firm Wipro entered into a multi-year global agreement for automative engineering services with Marelli, an independent supplier to the automotive sector.
As part of this agreement, Wipro will leverage its EngineeringNXT framework and strong automotive engineering expertise to establish a software engineering factory for Marelli, Wipro said in a statement.
It will also help improve Marelli’s operational efficiency and expedite the launch of technologies on connectivity and sustainable mobility solutions, the company said.
While Wipro did not disclose the value of the deal, analysts said it is likely to be a large deal considering Marelli had been looking to consolidate its automotive software development enterprise which has now come to Wipro.
Talking about the deal, Pareekh Jain, founder, Pareekh Consulting, said Marelli is a customer of Wipro for its IT services and has now extended its relationship in engineering as well.
“Wipro will use its EngineeringNXT to develop a software factory and consolidate software expertise for the company in India, Italy and Japan,” he added.
This comes at a time when the IT firms are looking to gain market through vendor consolidation deals, and acquisition client’s captive centres, as the overall pie has not increased.
IT leadership that Moneycontrol interacted with shared that they are gaining market share through vendor consolidation and expanding their partnership with their existing clients like in the case of Marelli. Infosys recently won a multi-year deal with the US-wealth management firm Vanguard in July.
Jain said this would continue as many automotive and other manufacturing enterprises are looking at M&A opportunities to consolidate their R&D footprint to make themselves future-ready.