Wipro Wins IT Contract worth US$1 Billion in Germany

Wipro Technologies has landed an IT servicing contract worth US$1 billion with German retail giant Metro AG.

As per the agreement, more than 1,300 IT employees of Metro will work as part of Wipro in countries including Germany, Romania, and India.

The news comes three months after the Indian IT firm established an innovation center in the German city of Düsseldorf, offering to help local businesses streamline their operations with the help of new technology solutions.

The contract will last for 5 years, and the companies can extend it to another four years.

Under the deal, Wipro will build and manage a robust IT infrastructure for the wholesaler, in addition to developing new applications.

“Partnering with Wipro allows us to simplify and streamline our IT landscape, and critically gives us access to innovation and the best digital practices,” said Timo Salzsieder, CIO, Metro.

The deal would not only help Metro optimize its business operations with new technology solutions but also cut costs and focus on its core business, say analysts.

The contract is yet another example of German firms protecting jobs at a time their economy is struggling to recover from the devastating blow dealt by the COVID-19 pandemic. A month ago, Deutsche Bank sold off its IT business to TCS, a move that analysts said was aimed at protecting 2,500 jobs.   

With more than 95,000 employees, Metro has operations in 34 countries across the world. The wholesaler generated US$31 billion in sales in the last financial year.