Wipro bags $300 mn GM contract
Wipro's share of the information technology outsourcing contract announced by General Motors.india Updated: Feb 03, 2006 13:35 IST
Indian software services provider Wipro Ltd said on Thursday that its share of the information technology outsourcing contract announced by General Motors Corp. was estimated at $300 million over 5 years.
On Thursday General Motors said it had awarded about $7.5 billion worth of business from the $15 billion it expects to spend over the next 5 years on IT to a clutch of technology companies including Wipro.
The others are Electronic Data Systems, International Business Machines Corp, Hewlett-Packard Co, Cap Gemini and the Compuware Covisint unit of Compuware Corp.
Sudip Banerjee, Wipro's President, Enterprise Solutions, told a news conference in the southern Indian city of Bangalore that Wipro would be involved in the development and maintenence of middleware - software that helps a variety of applications work together as if they were a single system.
The additional revenue will start flowing in from the second quarter of the next financial year, which ends in March 2007, he said. He did not indicate how the revenue flow would be spread over the period of the contract.
Wipro, which already works with GM on some projects, will double the number of people working for GM to 1,000 from the second quarter, he said.
Some 40-60 per cent of the work in the latest contract will be done from India, he said.
Indian companies are increasingly joining the ranks of global technology companies winning parts of such large multi-year, outsourcing contracts.
Wipro was the only Indian company to be awarded any work in the latest GM contract.
Last year, Tata Consultancy Services Ltd and Infosys Technologies Ltd were among five firms in the $2.2 billion IT outsourcing deal awarded by ABN AMRO.
In New York trading, Wipro's shares rose 3 per cent to $15.11.