This is the first large deal Wipro has signed after CEO Abidali Z. Neemuchwala took charge in 2016.
Shares of Wipro on Monday morning gained over 8 percent after it signed its largest deal worth USD 1.5 billion.
The stock touched an intraday high of Rs 328.00 and an intraday low of Rs 317.30.
The company signed a USD 1.5 billion-deal for ten years with Lincolnshire, Illinois-based Alight Solutions, a company that deals in technology-enabled health, wealth, HR and finance solutions. The company also completed acquisition of Alight HR Services India, which it had earlier bought for USD 117 million.
With this, Wipro has joined the league of larger rival Tata Consultancy Services which has been signing large deals. TCS has three large deals with a combined revenue potential of about USD 5 billion until December 2017.
“Our industry-leading partnership with Wipro will enhance our client experience by drawing on Wipro’s leading position in automation and innovation, while allowing Alight to invest in its health, wealth and cloud-based solutions to meet the needs of our clients,” said Chris Michalak, Chief Executive Officer, Alight Solutions.
Alight HR Services India, earlier known as Aon HR Services India, was set up in September 2016. It has about 9,000 employees and registered revenue of Rs 1,132 crore in 2017-18. It has centres in Gurugram, Noida, Mumbai and Chennai.
This deal will enable the digital transformation of Alight’s offerings across health, wealth, HR and finance solutions, and enhance the employee experience of Alight’s clients by leveraging Wipro’s industry-leading strengths in digital technologies, cognitive automation and data analytics.
This is also the first large deal Wipro has signed after CEO Abidali Z. Neemuchwala took charge in 2016.
“We are delighted to be chosen by Alight as their long-term strategic partner in their enterprise transformation journey to bring digital experiences and offerings to employees and employers globally," said Neemuchwala in a statement.
He added that Wipro would "leverage this expertise to digitalize and modernize Alight’s core across platforms, technologies and operations."
The deal could be seen as positive for the Bengaluru-based Wipro, which has lately been struggling with client specific issues that have had an impact on the bottomline. However, in the June-ended quarter, Wipro reported net profit of USD 307.55 million, up 2 percent from the same period the previous year. Revenue from IT services grew to USD 2 billion during the previous quarter, a rise of 5 percent year-on-year.
Wipro' last large deal win was the USD 1.1 billion outsourcing contract it won from Canadian logistics and utilities firm ATCO Ltd. in 2014. Even at the time, Wipro had bought the IT services business of the Canadian firm for USD 195 million.The stock has gained around 15 percent in the past one month, while in the past three days, it has risen around 7 percent. At 09:30 hrs Wipro was quoting at Rs 319.55, up Rs 17.90, or 5.93 percent, on the BSE.
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