According to the report by Reuters, Wipro Ltd., one of the biggest information technology, consulting and business process outsourcing companies in India, won its biggest contract ever. The company released a statement on Sunday, September 2 that it had won a contract worth over $1.5 billion with the US based company Alight Solutions LLC.
This contract, Wipro said was for digital services in human resources, health and finance. The IT exporter said that it would get about $1.5 to $1.6 billion in revenues over the duration of the deal.
According to the press release published by MarketWatch, the deal with Alight Solutions LLC is a 10-year contract in which Wipro will provide the company a comprehensive suite of IT related solutions as well as services.
Alight Solutions is a leading technology-enabled health, HR, finance and wealth solutions provider, based out of Lincolnshire, Illinois. According to the press release, Wipro will help with the digital transformation of the American company’s products and services across its various divisions.
The solutions provided by Wipro will also enhance the company’s employee experience of their clients. This will be done by leveraging Wipro’s expertise in digital technologies, data analytics and cognitive automation.
According to the Chief Executive Officer of Alright Solutions, Chris Michalak, their industry leading partnership with the Indian IT giant was going to enhance their clients’ experience by utilizing Wipro’s expertise in automation as well as innovation. This deal, said Michalak, would also give Alright the chance to invest in its own wealth, health and cloud-based businesses to better meet the needs of their clients.
The Chief Executive Officer as well as the Executive Director of Wipro, Abidali Z Neemuchwala also issued a statement that they were happy to be chosen by Alright Solutions to become their partners in their transformational journey in bringing digital experiences and solutions to their employees and clients across the globe.
Neemuchwala also said that this deal was a testament to the capabilities that Wipro has built via their strategic investments in their cloud platforms, their cognitive platform called Wipro HOLMES and in Wipro Digital. He also said that Wipro would now use this knowledge to digitize as well as modernize Alight’s core businesses, technologies, platforms as well as operations.
This is the first major deal that Wipro has signed since Neemuchwala took over as CEO of the company.
In July this year, Wipro had stated that it intended to buy Alight Solution’s Indian operations for a sum of $117 million in cash. This deal is expected to be closed in the quarter that closes in September this year.
Alight HR Services India, which was previously called Aon HR Services India, was established in 2016. It currently employs 9,000 people, spread across centers in Gurgaon, Mumbai, Noida and Chennai. The company generates revenues to the tune of $159 million.
Thanks to this announcement, the shares of Wipro shot up to a seven-month high on Friday. The company’s stocks gained as much as 8% to touch an intra-day high of ₹328.00 per share, before the stocks settled to close the week’s trading at ₹306.5 per share (~$4.31 per share).
The Indian IT giant had previously stated that had expected revenues from its key information technology businesses for the third quarter of the year, ending this September to be between $2.01 billion and $2.05 billion.
According to Money Control, with this deal, Wipro has finally joined the league of its much larger competitor Tata Consultancy Services (TCS). TCS already had bagged 3 large deals that had a revenue potential of more than $5 billion by December 2017.