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Wipro in pact with GM, eyes $300M revenue
By agencies
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Friday, 03 February 2006, 20:30 IST
BANGALORE: Wipro Ltd expects to realize revenues exceeding $300 million from the five-year information technology (IT) outsourcing contract signed with global auto giant General Motors (GM).
The auto major, GM finalized its $15 billion mega outsourcing deal by signing up IT suppliers like incumbent vendor EDS, Hewlett Packard, Capgemini, IBM, Compuware Covisint and Wipro to source systems integration services for its extended global enterprise over five years.
While EDS will retain most of the business at GM, HP and Capgemini were expected to increase their existing business. Announcing the deal, Wipro Technologies President, Enterprise Solutions, Sudip Banerjee said, Wipro in partnership with EDS has won four RFPs (request for proposals) of the 43 floated by the automaker. The lone RFP won by Wipro on its own relates to the development of middleware systems for GM. Besides, Wipro would also contribute to the development of GM's Onestar, a vehicle tracking system and a proprietary next-generation technology.
Revenues from the deal are expected to flow in from the second quarter of the financial year 2006-07, Banerjee said. GM is one of Wipro's existing large clients that translated into quarterly revenues of $30 million. The current deal largely covers areas of application, development and maintenance with some element of testing services. He also estimated that about 40-60 percent of the work would be off-shored over the five-year period.
At present the companys engagement with GM involves a team of about 500 engineers, which would be doubled to more than 1,000 over the next 18 months, he said. We also plan to add more capacity to our near-shore center in Canada, that's close to Detroit, the headquarters of GM, he said adding both Wipro and EDS would leverage their global presence to execute the deal.
