Wipro Shares Surge Close to 9% on Bagging its Biggest Ever Deal

Wipro Limited in a statement on Sunday said that it has won its biggest ever contract valued over 1.5 billion from US-based Alight Solutions LLC for digital services in health, human resources and finance. The Bengaluru-based software service exporter said that it could be earning $150 to $160 million annual revenue which translates to $1.5 to 1.6 billion in revenue during the 10-year tenure of the deal. The deal is expected to be completed in this month.

Following the news, shares of Wipro Limited on Monday rose as much as 8.9 percent, its most in over five years and was trading at a seven month high of Rs 328 in morning trade. The stock was the best performer on Nifty 50 as well as Sensex at the time of writing this article.

The contract with Alight Solutions LLC is important to Wipro at a time when under the leadership of Abidali Neemuchwala, (who took over in 2016) the company aims to achieve growth number matching the industry. The outsourcing industry growth has slowed down lately as firms are cutting budgets on back-end operations to focus on business operations.

Its rival, Tata Consultancy Services (TCS) has bagged three such large multi-year contracts worth more than $5.6 billion in revenue since December 2017 making the company positive of achieving double digit growth in the current financial year.