BENGALURU: Wipro’s contract with Canadian energy and utilities major Atco could shrink following the latter’s decision to insource some work, and outsource some parts of the work to another IT service provider, sources told TOI.
Wipro and Atco signed a $1.2-billion contract in 2014 that would result in revenues of $112 million to Wipro annually for the next ten years, up to December 2024.
As part of the engagement, Wipro was to provide total outsourcing solutions to Atco in Canada and Australia.
Atco is a diversified $22-billion enterprise employing 6,200 employees providing innovative and integrated solutions in structures & logistics, electricity, pipelines & liquids and retail energy.
When TOI asked Wipro about the development, the company said it does not comment on specific client engagements.
An Atco spokesperson said, “Atco continues to work with Wipro. Any decisions on changes with other vendors is not something Atco will comment on.”
Wipro’s former head of energy, natural resources and utilities, Anand Padmanabhan, had led this transformational initiative.
Wipro had also acquired Atco I-Tek, a subsidiary of Atco, for an all-cash consideration of $195 million.
Phil Fersht, CEO of HfS Research, said, “Let’s hope for Wipro’s sake this is an isolated incident, as we are seeing a large drive from enterprises to increase their outsourcing quotient with their primary provider.”