Software services firm major Wipro Ltd on Tuesday announced a strategic digital and IT partnership deal with German wholesaler METRO AG, in a deal that is expected to generate revenue of over ₹1,000 crore per year for the Bengaluru-based firm.
The estimated deal value for the duration of the first 5 years is approximately $700 million. With the intention to extend up to four additional years, it can be a potential spend of up to $1 billion, Wipro said.
As part of the deal, more than 1,300 employees across the IT units of the wholesaler from Germany, Romania and India will transfer to Wipro. The IT major said that it will provide them with new opportunities to advance their careers, access innovation, work with leading digital technologies and adopt new ways of working that enable agility, speed and scale in engineering.
Wipro will deliver a complete technology, engineering and solutions transformation program for METRO as it positions itself as a wholesale 360-degree provider in the hotel, restaurant and catering food industry fuelled by quality, focus and flexibility.
Wipro’s transformation program will encompass cloud, data center services, workplace and network services, along with application development and operations to provide an integrated, flexible and robust digital infrastructure to help drive METRO’s transformation agenda.
“We are at a stage where we want to focus on the activities that are going to give us the strongest possible competitive advantage and to do that, we need to be confident in the digital infrastructure that underpins our growth. Partnering with Wipro allows us to simplify and streamline our IT landscape, and critically gives us access to innovation and the best digital practices,” said Timo Salzsieder, CIO, METRO AG.
At the heart of the partnership is the formation of a joint Transformation Office and Innovation Council that will guide the businesses through the transformation and ensure collaborative innovation throughout the partnership.
Thierry Delaporte, CEO and MD, Wipro said, “Like us, METRO AG is focused on leveraging digital transformation for competitive advantage. Wipro’s role is to make that transformation efficient and effective.”
Wipro also plans to launch a Digital Innovation Hub in Düsseldorf, Germany to support METRO and other clients in the region. The proposed Digital Innovation Hub will serve as Wipro’s flagship centre in Europe and enable organizations to cross skill and upskill, besides supporting talent development in local communities.
“The Digital Innovation Hub will aim to galvanise adoption of new skills and technologies by companies to innovate and re-imagine their products and services, improve operational efficiencies, and drive customer and employee delight, thereby transforming their ability to compete and thrive in the market,” Wipro said.
The takeover is expected to be complete on or before April 30, 2021.
