Wipro Wins $200-m Tech Service Contract in Europe

Deal comes as a relief to co's $1-billion telecom practice that is struggling to find fresh work LISON JOSEPH BANGALORE  Wipro has bagged a $200 million (. 1,090 crore) technology service contract in Europe, believed to be one of the largest deal wins for India's third-largest software services exporter this year, according to aperson with direct knowledge of the negotiations. The deal, described as a "strategic partnership" to provide information technology infrastructure to a European telecom equipment-maker, is spread over five years. It will also give innovation support to the company's research and development. "It was signed last week and work has already begun," the source said, requesting anonymity. The Bangalore-based company competed with global multinationals IBM and Accenture as well as Indian rival Tata Consultancy Services to win the deal. An official spokesman for the company said Wipro does not comment on market speculations.  Revenues from the client will likely start reflecting from the December quarter, adding to Wipro's tally of clients contributing about $40-$50million annually. Currently, there are about 25 clients contributing at least $50million or more.  The deal comes as a relief to Wipro's $1-billion telecom practice that has been struggling to find new work due to lower technology spending by telecom service providers and equipment-makers in the face of non-profitable growth.  The economic slowdown in the US and Europe has also been adding to the woes of the sector. The deal follows a large multiyear contract that Wipro signed in July with Royal Philips Electronics to be its main global partner. Though financial details were not announced, it is believed to be a multi-million dollar contract. For Wipro, as a percentage of total revenues, the telecom and media vertical shrank from 16.8% at the beginning of the last financial year to about 14.4% in the September quarter. Chief executive TK Kurien, who took over nearly two years ago in February 2011, is under pressure from investors to demonstrate his ability to take Wipro back to higher growth, and match peers. Kurien was billionaire promoter Azim Premji's choice for CEO after the company dismantled the disastrous co-CEO model, which was in place from 2008.  Wipro has been lagging the industry in revenue growth in the past few quarters, sometimes growing even slower than cross-town rival Infosys. In the September quarter, Wipro revenues grew 1.7% sequentially to touch $1.54billion, compared with Infosys.  Co to Buy S'pore Firm for $144 m  MUMBAI Wipro, India's No 3 software services provider, will acquire LD Waxson Group, a Singapore-based consumer goods company, in an allcash deal worth about $144 million, the company said in a statement. The deal, expected to be completed within 60 days, is valued at 2.1 times the revenue reported by LD Waxson during 2011-12, according to the statement issued on Saturday. LD Waxson, which sells skincare and healthcare products in countries, including China, Singapore, Malaysia and Hong Kong, will be a part of Wipro's stable of consumer care products.