Wipro gets $500-mn contract from a leading US communication service provider

Information technology (IT) services major Wipro Ltd on June 6 said it has been awarded a $500-million deal by a leading US communication service provider over a period of five years.

“Wipro shall provide managed services for some products and industry specific solutions,” said the IT firm in a stock exchange filing.

The deal assumes significance as it is the first big deal that Wipro has won under its new chief executive officer Srinivas Pallia. The 32-year Wipro veteran assumed charge on April 6, after his predecessor  Thierry Delaporte stepped down.

In April, the Bengaluru-based company said it has signed a multi-million-dollar agreement with telecommunications major Nokia, without disclosing the amount. The deal involved overhauling Nokia’s employee service desk and provide seamless, real-time IT support to a global network of employees.

Barely two week after taking over the reigns of the company, Pallia outlined five key focus areas to turn around the company and the first among them was to accelerate large deal momentum by working closely with clients and partners.

He was asked if there would be a different approach than what his predecessor had adopted, he said the company would call out present and future large accounts and be more proactive in pursuing them.

The company recently, in its annual report, said that Wipro expects growth in financial year 2024-25 on the back of investments made by clients in key areas such as Artificial Intelligence (AI) and Generative AI implementation, among others.

For the fourth quarter ended March 31, the IT services exporter reported large total contract value (TCV) of $1.2 billion, up over nine percent year-on-year. Wipro considers constitute deals greater than or equal to $30 million in total contract value terms as large deal bookings.

On a full-year basis, the order book was up over 16 percent at $4.6 billion as compared to $3.90 billion recorded in FY23.

Chief financial officer Aparna Iyer said that the company is winning vendor consolidation deals in Europe

On June 6, Wipro’s shares closed 2 percent higher at Rs 461.6 apiece.