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Indian IT major Wipro has won a $500-million contract with a US communication service provider. This five-year contract marks the company’s first big win after the new CEO Srini Pallia took over the reins, indicating Wipro’s comeback after lagging behind its peers.
- Wipro Share Price Live Updates 07 June 2024: Wipro stock surges 5% on securing $500 million deal from US firm
Wipro will provide managed services for select products and industry-specific solutions, according to an exchange filing. The company has yet to provide further details.
Eyeing large deal
CEO Pallia, soon after taking over his new mandate, has been focussing on driving large deal growth. During the Q4 results, he said, “We will concentrate on revitalising the company, accelerating large deal growth momentum by working closely with clients and partners, strengthening relationships with large clients and partners, and further investing in accounts that have the potential to grow into large accounts.”
In Q4FY24, its total bookings stood at $3.6 billion, marginally lower than the $3.8 billion signed in the third quarter. Its large deal bookings stood at $1.2 billion, $0.9 billion higher than the quarter before.
‘Welcome sign’
IT analyst Pareekh Jain, CEO at Pareekh Consulting and EIIRTrend, said, “Wipro has won a large deal after a long time. These deals are important. This is a welcome sign for the new CEO whose main task was to bring Wipro on the path of growth.” He added that one way for large companies to grow is through large deals like these.
Commenting on the size of the deal, he said, “$500 million for five years amounts to $100 million per year. Revenue growth might not be that big, but overall, it sets the momentum for positivity and direction. It’s good to see Wipro catch momentum again. Whenever there is a transformation every time there is a new CEO, the metrics we look at are large deal signings. This is a good sign.”
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