Aircel Renews Rs 500 Crore Technology Outsourcing Deal with Wipro
Telecom operator Aircel has renewed its technology outsourcing contract with Wipro, estimated to be worth about Rs 500 crore and spread over five years. Both Wipro and Aircel confirmed the deal has been renewed but declined to comment on the value.
Aircel’s contract with Wipro, which was first given out in 2008, was for a period of nine years but the carrier is learnt to be refocusing its business and cutting costs. The new terms of Aircel’s contract with Wipro is more focused on voice and basic data and not so much on content and applications, which was an area of focus for Aircel earlier.
Last December, Idea Cellular had renewed its outsourcing contract with IBM. These outsourcing deals represent the second generation of IT contracts from telecom players that are coming up for renewal or being extended before the contract expires as IT vendors seek to retain clients.
“Telecom is moving from a growing-to-mature industry, so players will have to start making these investments. Voice will continue to be a growth engine but data will be an equally important growth engine,” said Prashant Singhal, global telecommunications markets leader, EY.
Largest operator Bharti Airtel’s outsourcing contract with IBM is expected to see fierce competition from Tech Mahindra and Wipro when it comes up for renewal in April 2014.
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