(Times of India Via Acquire Media NewsEdge) BANGALORE: Wipro has bagged a $200-million (Rs 1,090 crore) technology service contract in Europe, believed to be one of the largest deal wins for India's third-largest software services exporter this year, according to a person with direct knowledge of the negotiations.
The deal, described as a "strategic partnership" to provide information technology infrastructure to a European telecom equipment-maker, is spread over five years. It will also give innovation support to the company's research and development.
"It was signed last week and work has already begun," the source said, requesting anonymity.
The Bangalore-based company competed with global multinationals IBM and Accenture as well as Indian rival Tata Consultancy Services to win the deal. An official spokesman for the company said Wipro does not comment on market speculations.
Revenues from the client will likely start reflecting from the December quarter, adding to Wipro's tally of clients contributing about $40-50 million annually. Currently, there are about 25 clients contributing at least $50 million or more.
The deal comes as a relief to Wipro's $1-billion telecom practice that has been struggling to find new work due to lower technology spending by telecom service providers and equipment-makers in the face of non-profitable growth. The economic slowdown in the US and Europe has also been adding to the woes of the sector.
The deal follows a large multi-year contract that Wipro signed in July with Royal Philips Electronics to be its main global partner. Though financial details were not announced, it is believed to be a multimillion dollar contract.
For Wipro, as a percentage of total revenues, the telecom and media vertical shrank from 16.8% at the beginning of the last financial year to about 14.4% in the September quarter.
Chief executive TK Kurien, who took over nearly two years ago in February 2011, is under pressure from investors to demonstrate his ability to take Wipro back to higher growth, and match peers. Kurien was billionaire promoter Azim Premji's choice for CEO after the company dismantled the disastrous co-CEO model, which was in place from 2008.