Wipro, the Bangalore-based IT services company, is understood to have bagged a multi-year contract from Deutsche Bank valued around $125 million (around Rs 850 crore).
According to sources privy to this development, as a part of the five-year contract, Wipro would primarily provide application maintenance services to Deutsche Bank even though there will a small component of application development services work as well.
In reply to an email query, a spokesperson of Wipro declined to comment saying that “Wipro does not comment on market speculation.”
This is the second major client win for Wipro in the banking, financial services and insurance (BFSI) space in the past three months. In June this year, Wipro had bagged a large IT outsourcing contract worth around $500 million from Citigroup (Citi), a leading global financial services company. The tenure of the contract was also for five years.
Frankfurt-headquartered Deutsche Bank is one of the major global financial services companies that actively outsource works to leading Indian IT services companies. According to industry sources, Deutsche Bank has outsourced a large part of its application development works to Infosys, India’s second largest IT services company.
Besides, HCL Technologies is also one of the IT services vendors for the bank. However, Infosys continues to remain as the preferred vendor for the bank, sources added.
The recent wins in the BFSI space are a major uplift for Wipro which derives about 26.5% of its overall revenues from this vertical. However, its exposure to the BFSI space is somewhat low as compared to its large Indian peers such as TCS and Infosys.
In January 2011 when Wipro decided to rejig the management by doing away with the joint CEO model, the company had made it clear that BFSI as well as Healthcare are going to be two major thrust areas.
Wipro’s chairman Azim Premji has said at that time that the company would focus on improving its revenue shares from both these verticals which was high for its industry peers.
“The fastest segments in the market where competition has been able to pull up the entire size of their companies have been financial services and healthcare. Though we are strong in the financial services area, relative to the total share of our top line, its contribution is 27 percent, whereas most of our competitors have done far better,” Premji had said at that time.
However, with the pickup in demand in the BFSI space, Wipro is aggressively pitching for large clients and largely succeeded in its effort, according to industry analysts. “Wipro’s renewed focus on winning new deals has started showing improved traction over the last two notes,” said a market analyst on condition of anonymity.
In the quarter ended June 30, 2013, financial solutions (BFSI) is the only vertical for Wipro which showed a sequential growth (0.8%).
New region head for Nordics
Plans to add 500 people in region over 3 years
Wipro, India’s second largest IT services company on Tuesday said that it was planning to strengthen its presence in the Nordic region.
The Bangalore-based company announced the appointment of Carl-Henrik Hallstrom as Regional Head for the region.
An industry veteran with over 20 years of experience in the IT and BPO industry, Carl-Henrik was previously heading Sourcing Advisory for Nordics region at research and analyst firm KPMG.
As the Regional Head Nordics region for Wipro, he will be based in Stockholm, Sweden and report to Rajat Mathur, Chief Sales and Operations Officer, Growth Markets, Wipro.
Wipro also said that the company was planning to increase its headcount in the Nordic region by 500 in the next three years. The company did not divulge its present headcount in Nordics, but industry sources pegs it around 400-500.
The company said its key focus verticals on the region would be Telecom, Manufacturing, and Energy & Utilities.