This means Wipro is expected to earn $65 million in revenue from the company every year. Wipro announced Wednesday that the company will handle policy management, claim handling, customer support, data management and compliance support in Phoenix.
The deal was conducted in a draft in a large deal with India’s largest IT outsourcing company. Wipro ended the last fiscal year with $10.8 billion in revenue, and in June he signed a five-year contract worth $500 million with an unnamed U.S. communications service provider.
“This strategic engagement with Phoenix Group reflects our commitment to leveraging our deep transformation expertise around processes and technologies – including cloud, data and AI to drive operational agility for customers in the financial services sector,” said Nagendra Bandaru.
Wipro will also establish a technology center for Phoenix in the UK. Insurer employees will transition to Wipro as part of this.
At least one analyst cheered on the move.
“Even before Pallia took over as CEO, some of the big deals for Wipro Won came from his portfolio. Now, these deals are from other verticals, which means he is implementing his formula for success throughout the organization,” said Abhishek Kumar, research analyst at JM Financial. “Such a consistent trade victory should help them bridge the growth rate gap with their larger peers.”
Palia’s leadership strategy takes shape
For Srini Pallia, his mission is to restore the company’s fortunes, which ended last year with a decline in revenue, a deal that was a silver line. Pallia’s two big deals were quickly linked after his predecessor to their Delaporte predecessor, after his later position as CEO of Wipro, failed to package such a big deal.
Pallia took over as CEO of Wipro on April 6, 2024, and his mission is to turn the company to growth. For now, Pallia is looking to make things simple. The company does not want to sign or renew its operating margins below 16%, while expensive team Offsites is moving to virtual mode.
The company reorganized last week under Pallia’s Watch, creating four business units, including technical services, business process services, consulting services and engineering.
As part of Rejig, Jo Debecker, who is in charge of the IT outsourcer’s cloud business, left the company after three years of work. His departure marks the highest change in the tenth level of Wipro since Pallia took over as CEO. In seven of these 10 exports, internal candidates replaced outgoing executives, in line with Pallia’s strategy to empower vertical industries.
Even though momentum still has challenges
But while the deal may keep shareholders on, it continues. First of all, this is not a deal worth over $1 billion.
More importantly, WIPRO is still expected to see a decline in full-year revenue for the second consecutive year, although not as good as in FY24.
Wipro’s revenue fell 4.2% annually to $7.78 billion in the nine months ended December 2024.
The company is expected to end the fourth quarter of this fiscal, with IT services revenue of $2.6-2.66 billion. This means that even if Wipro reported the upper end of the fourth quarter estimate, it could see a second straight year-round decline, ending fiscal 25.
Wipro’s European business is expected to get a boost from the deal. The company received $3.1 billion in revenue from its European-based clients at the end of March 2024, down 4.4% from the previous year. Wipro will not disclose UK income separately, but will instead be clubs under European domination.
Wipro’s deal is the second such a big announcement in a month.
The contract reached a 13-year contract worth $1.56 billion, according to Coford Co., Ltd. on Tuesday. As part of the deal, Kofog is expected to handle Saber’s software product delivery.
