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.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
“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.