Master Services Agreements for 10 years.
By The American Bazaar Staff
BANGALORE: Indian IT company Wipro has entered into a “strategic partnership” with ATCO Ltd., a Canada-based company.
In separate press releases, both companies revealed that the terms of the partnership entail a 10-year arrangement comprised of a series of Master Services Agreements, through which Wipro will provide IT and outsourcing solutions for ATCO. That deal alone will provide $112 million (in US Dollars) in additional revenue for Wipro over the course of the agreement.
Furthermore, Wipro has now acquired ATCO I-Tek, a subsidiary of ATCO, in an “all-cash consideration” worth $195 million USD. ATCO I-Tek is the dedicated IT arm of ATCO, and will help strengthen Wipro’s industry presence in North America and Australia, said the company.
“We are delighted to collaborate with ATCO in this transformational initiative. Our focus will be to enable ATCO to enhance their competitiveness by deployment of strategic solutions and efficient delivery of IT services,” said Anand Padmanabhan, Wipro’s Chief Executive of Energy, Natural Resources and Utilities, in a statement.
“We are confident that our domain expertise combined with the enhanced talent pool will help us support ATCO’s growth,” Padmanabhan added. “We have traditionally had a strong position in the Utilities space in Europe and this engagement provides momentum to our business inCanada and Australia. The alliance with ATCO enhances our capability to create, nurture and tap local talent to power our growth journey in Canada.”
While Wipro is the third-largest IT services company in India, ATCO is considerably smaller, although that does not mean it is a lightweight. The company employs around 9,800 workers around the world, and has assets totaling nearly $14.9 billion USD, according to the company’s own data. For comparison, Wipro’s international workforce is more than 140,000 strong, with clients in more than 175 cities across six continents.
“This alliance ensures ATCO can focus on growing our core businesses of structures and logistics, utilities, and energy while partnering with Wipro for strategic, innovative IT solutions required to support our global operations,” said Brian Bale, ATCO’s Senior Vice-President & Chief Financial Officer. “Wipro’s deep domain capability and technology-leadership will also ensure we continue to deliver cost-effective services to our customers.”