The latest deal for IT companies is targeting the UK Group, which Wipro will work in the management of life and elderly care operations.
Indian IT company WIPRO won a 10-year contract worth US$645.4 million (approximately Rs 556.7 billion), British insurance company Phoenix Group, according to Reuters. This is the second major deal for IT companies this fiscal year. WIPRO is currently the fourth largest IT service provider in India, with a market value of Rs 2.79 crore as of March 26. The company was founded by Indian tech giant Azim Premji, whose real-time net worth is $12 billion by sales. In June 2024, Wipro announced a $500 million deal with U.S. communications service providers.
Phoenix Group is the largest long-term saving and retirement business in the UK. Wipro’s latest deal is a guaranteed business targeting Phoenix Group, where Wipro will work and manage the pension business. It said in a statement that Wipro will increase its operations in the UK and will establish a hub for operations and technology, which will serve the employees of both companies. It said some of Phoenix employees will also transition to Wipro.
Under the terms of the transaction, WIPRO’s existing FCA regulatory entity, WIPRO Financial Outsourcing Services Co., Ltd. (WFOSL), will provide Phoenix Group’s Reassure customers with a comprehensive living and pension management service. Services will cover policy management, claim handling, customer service support, data management and reporting, compliance and regulatory support, and platform technology.
WIPRO shares fell 1.33% on Wednesday to Rs 267.40 on the national stock exchange, while benchmark Nifty fell 0.77%. The stock has risen 11.45% in the past 12 months, but has fallen 11.41% every year to date.
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