Wipro, India’s fourth-largest IT services company, has clinched a significant three-year contract with Standard Chartered, expected to yield over $50 million in annual revenue. The deal involves Wipro handling data transformation and IT infrastructure for the bank, with a digital component included.
The specifics of whether this is a new agreement or an expansion of an existing one remain unclear. Sources familiar with the matter noted an increase in Wipro’s workforce dedicated to Standard Chartered. If Wipro sustains earnings of at least $50 million annually from this contract, it could potentially reach $150 million by 2027.
Uncertainties and Expansion
When approached for comment, Wipro did not respond to queries, while a Standard Chartered spokesperson refuted the accuracy of the information mentioned.
Earlier in June, Wipro announced a five-year deal valued at $500 million from an American communications service provider, contributing to its growth strategy.
Leadership and Financial Performance
Analysts attribute these recent wins to Wipro’s intensified sales efforts under CEO Srinivas Pallia, who took over in April.
Despite these gains, Wipro reported a revenue decline in the fiscal year ending March 2024, in contrast to its peers in the Indian IT sector. The company remains optimistic about its future prospects amid challenges posed by reduced technology spending in the banking sector.
Banks, a key client base for Indian IT firms, have been rationalising their IT service providers, favouring fewer vendors for better management and cost control. This trend reflects broader industry adjustments following increased vendor numbers during the pandemic.
Overall, India’s IT sector grew modestly in FY24, facing its slowest growth rate in 25 years according to industry data. Wipro continues to navigate these dynamics while leveraging strategic contract wins to drive future growth in a competitive market.
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