Wipro inks $400m deal with Takeda1 min read . Updated: 19 May 2014, 11:45 PM IST
Wipro will provide IT infrastructure management services across Takeda's global operations
Bangalore: India’s third largest software services company Wipro Ltd has signed a multi-year, $400-million deal with Japan’s Takeda Pharmaceutical Company Ltd in a significant boost to the Bangalore-based firm as it attempts to touch $1 billion in revenue from the health care business over the next two years.
The “strategic alliance" may help Wipro’s health care business potentially reach its target quicker than originally expected, the head of Wipro’s health care and life sciences business said in a phone interview.
“It’s global and a platform that we’re building for Takeda, across a layer of applications," said Sangita Singh, chief executive of the health care & life sciences segment at Wipro. “This deal helps our journey towards that ($1-billion target). We’re very excited about that."
Wipro did not specify the exact tenure of the deal. Typically outsourcing deals of this size and nature can be signed for anywhere from five to 10 years. The deal is valued at “upwards of $400 million" over its duration, Singh said.
As part of the strategic alliance, Wipro will provide information technology (IT) infrastructure management services across Takeda’s global operations and create one simplified platform across the company for all of Takeda’s IT processes and architecture globally. Takeda is Japan’s largest pharmaceutical company.
Wipro will provide services covering Takeda’s operations across the world and will operate out of data centres in Asia, Europe and America, the company said.
For the quarter ended in March 2014, Wipro’s health care business grew by 14.3% from the year-ago period. Health care and life sciences contributes about 10% of the company’s overall revenue. Wipro currently counts the likes of Johnson & Johnson Ltd among its top health care customers.
Last month, Wipro’s larger rival Tata Consultancy Services Ltd merged its Japanese businesses with Mitsubishi Corp., Japan’s largest trading firm, and said it expects to generate more than $300 million in this financial year from the alliance.