Highlights:

  • Wipro inks a strategic digital and IT partnership deal with METRO AG
  • As per the deal, Wipro will deliver end-to-end technology, engineering, and solutions transformation program for METRO
  • Wipro plans to introduce a Digital Innovation Hub in Düsseldorf, Germany, to support and cater to METRO and other customers in the region
  • The takeover is anticipated to be done on or before April 30, 2021

Wipro Limited, an Indian multinational corporation involved in delivering information technology and consulting services, on December 22, 2020, broke the news of its strategic digital and IT partnership deal with METRO AG, a German wholesaler.

The deal is expected to generate more than INR 1,000 crore per year for Wipro.

The takeover is expected to be complete on or before April 30, 2021.

The estimated value of the deal for the first five years is calculated to be approximately USD 700 million. With the intention to extend the deal for an additional 4-year period, the potential spend is estimated to reach an impressive USD 1 billion, said Wipro.

As a part of the deal, over 1,300 employees across the IT units of METRO AG from Germany, Romania, and India will transfer to Wipro.

Wipro added by saying that it will provide the workforce with new opportunities to grow their careers, access innovation, work with leading digital technologies, and embrace new ways of working to improve flexibility, pace, and scale engineering.

Purpose of the deal

As mentioned in the deal, Wipro will deliver end-to-end technology, engineering, and solutions transformation program for METRO as it places itself as a 360-degree vendor in the hospitality and food catering business driven by quality, focus, and agility.

Wipro’s transformation program will comprise data center services, cloud, workplace, and network services, along with app development and operations to deliver a cohesive, agile, and robust digital infrastructure to help drive METRO’s transformation agenda.

The road ahead

Wipro also plans to introduce a Digital Innovation Hub in Düsseldorf, Germany, in order to support METRO and other customers in the region. As per the plan, the Digital Innovation Hub will operate as Wipro’s leading center in Europe and facilitate enterprises to cross skill, upskill, and support talent development in local communities.

Wipro states, “The Digital Innovation Hub will aim to galvanise adoption of new skills and technologies by companies to innovate and re-imagine their products and services, improve operational efficiencies, and drive customer and employee delight, thereby transforming their ability to compete and thrive in the market.”

CIO, METRO AG, Timo Salzsieder’s take on the deal

“We are at a stage where we want to focus on the activities that are going to give us the strongest possible competitive advantage and to do that, we need to be confident in the digital infrastructure that underpins our growth. Partnering with Wipro allows us to simplify and streamline our IT landscape, and critically gives us access to innovation and the best digital practices.”

He added, “At the heart of the partnership is the formation of a joint Transformation Office and Innovation Council that will guide the businesses through the transformation and ensure collaborative innovation throughout the partnership.”

Thierry Delaporte, CEO and MD, Wipro, said, “Like us, METRO AG is focused on leveraging digital transformation for competitive advantage. Wipro’s role is to make that transformation efficient and effective.”