Wipro Bags 10-Year Outsourcing Deal With Canada's ATCO
India’s third largest IT company, Wipro has entered into a strategic alliance with Alberta-based ATCO Ltd, one of Canada’s premier corporations. As part of this alliance, Wipro will provide total outsourcing solutions to ATCO in Canada and Australia.
Wipro and ATCO have signed a series of master services agreements under which Wipro will provide the complete suite of IT services to ATCO. The arrangement is projected to result in revenues of over $112 million to Wipro annually, for the next ten years, till 2024, according to a statement issued by the company.
“This alliance ensures ATCO can focus on growing our core businesses of structures and logistics, utilities, and energy while partnering with Wipro for strategic, innovative IT solutions required to support our global operations. Wipro’s deep domain capability and technology-leadership will also ensure we continue to deliver cost-effective services to our customers,” said Brian Bale, Senior Vice President & Chief Financial Officer, ATCO.
Anand Padmanabhan, Chief Executive – Energy, Natural Resources and Utilities, Wipro said, “Our focus will be to enable ATCO to enhance their competitiveness by deployment of strategic solutions and efficient delivery of IT services.”
Wipro’s IT services delivery model will be further strengthened in North America and Australia by ATCO I-Tek, a subsidiary of ATCO with a presence in both these geographies, which will now become a part of Wipro for an all-cash consideration of $195 million. ATCO I-Tek has been providing IT Services to ATCO for the past 15 years.
Wipro’s oil and gas unit generates over a $1 billion of the company’s $7.3 billion in revenues. It is also one of the fastest growing units in the organization, even as rival Infosys garners a significant share of revenues from the oil and gas market. While the deal is reportedly one of the largest for Wipro, it will also be the second such acquisition made by the Energy and Utilities division of Wipro, after it bought US-based Scientific Applications International Corp for about $150 million in April 2011, according to sources.
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