Wipro seals 3-year cloud deal with RSA Insurance

Wipro, a leading IT services company, announced an agreement with RSA, a global general insurance firm headquartered in London. This collaboration builds upon their existing partnership since 2016. The agreement focuses on accelerating RSA's migration to the cloud and constructing a secure, compliant, and scalable IT infrastructure. Wipro will support RSA in delivering various operational services, fostering a connected business environment, and facilitating the achievement of RSA’s growth objectives.

Wipro's role extends beyond operational support. The collaboration aims to enhance both customer and employee experiences through the implementation of automation, leveraging cutting-edge cloud technology, and integrating top-notch cybersecurity frameworks.

Statements from Leaders

Omkar Nisal, Managing Director UK & Ireland, Wipro Limited, emphasized their commitment to accompany RSA in their modernization journey, addressing technology and regulatory needs. They aim to fortify and expand RSA's business through innovative cloud technology and robust cybersecurity measures.

Matt Lockie, the IT Foundation Director at RSA, emphasized the ongoing collaboration between Wipro and RSA as a driver for enhanced value in their infrastructure services. He highlighted a focus on modernization in the upcoming years, expressing the joint commitment of both organizations to surpass current standards and achieve even greater success in the future.

Large deals dried up

Between January 2021 and last week, Tata Consultancy Services Ltd secured five major contracts, Infosys Ltd got three, and HCL Technologies Ltd won one contract worth over $2 billion. However, Wipro faced challenges, won a single mega deal in the last 3 years

Wipro's performance has been below par, and they've struggled to win substantial contracts from Fortune 500 companies. Mega deals (contracts over $1 billion) are crucial for top Indian IT firms, providing consistent revenue and growth. However, such deals are rare because most Fortune 500 companies prefer not to tie themselves to a single IT vendor for long periods.

Wipro's revenue declined in the first and second quarters of the fiscal year, and the company anticipates a further decline in the October-December period. The shift in the market, where large deals are scarce, has affected Wipro's dedicated focus on winning such contracts.

Overall, Wipro's challenges in securing substantial contracts, the departure of key executives, and the market's shift away from large deals pose hurdles for the company's growth compared to its rivals. Trautman, who joined Wipro as the chief growth officer from Accenture Plc in February 2021, has resigned. Her last day at Wipro will be on December 31st.

Final Words

This collaboration signifies a strategic move for Wipro during its transformative phase, aiming to secure contracts. The agreement is poised to contribute to RSA's modernization drive and promises mutual success through continuous innovation and technological advancement.