Finnish media group Sanoma will transfer its IT infrastructure and support functions to Wipro as part of an outsourcing deal.
With this transaction, 38 people in Finland and the Netherlands would become employees of Wipro, according to a media communication on the Sanoma website.
Sanoma’s in-house technology team would focus more on supporting the services that are critical to the business units in the future, the statement said. Financial details of the contract were not disclosed.
“The ability to react and develop new offerings is crucial in the changing media environment. The co-operation with Wipro proved to be the best solution, both in terms of the price and the quality of the services,” said Mikael Nurmi, Chief Technology Officer of Sanoma Technology.
The centralisation of services to Wipro is part of Sanoma’s €100-million cost-cutting programme.
In Finland, the Helsinki-based Sanoma is merging media operations into one company. Earlier this month, it announced a deal to sell 19 magazine titles in the Netherlands.
The €2.1-billion Sanoma is amongst the largest media and learning companies in Europe. Its key markets are Finland, the Netherlands, Belgium and Central and Eastern Europe.
Incidentally, Europe accounted for 30 per cent of Wipro’s revenue for the quarter ended March 31, 2014.