Wipro wins $1.5 billion deal from Alight Solutions

In what would be its largest win to date, Wipro Ltd has bagged a 10-year contract worth more than $1.5 billion to provide digital services to U.S. firm Alight Solutions.

This deal will result in revenues of $1.5 to $1.6 billion for Wipro over the tenure of the deal, the Bengaluru-headquartered company said in a statement on Sunday. With this deal, Wipro joins the ranks of IT industry leader Tata Consultancy Services (TCS) in bagging large contracts. Over the past year, TCS has bagged at least three contracts which will bring revenues of over $5 billion.

Wipro's new contract will enable the digital transformation of the Lincolnshire, Illinois-based Alight’s offerings across health, wealth, HR and finance solutions.

“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.

Such deals have become important for IT firms as demand for outsourcing services, the mainstay for many Indian IT firms, is slowing due to the rise of digital services.

In July, Wipro reported that its net profit for the three months ending June 30 rose to Rs 2,121 crore from Rs. 2,077 crore a year ago. Its revenue from IT services grew by nearly 5% to Rs 13,700 crore, while the banking, financial services and insurance (BFSI) business grew 17.5% to Rs. 4,110 crore.

“This is a testimony to the capabilities we have built through our strategic investments in Wipro Digital, cloud platforms and cognitive platform Wipro HOLMES™. We will leverage this expertise to digitalise and modernise Alight’s core across platforms, technologies and operations,” said Abidali Z. Neemuchwala, chief executive officer and executive director, Wipro Ltd.

Earlier this year, Wipro had agreed to buy the Indian operations of Alight Solutions for $117 million.