Wipro's big deal boosts confidence

Gaining pace The Wipro stock has marginally outperformed the Nifty IT index in the last one year.

- Harsha Jethmalani

Top-tier IT services provider Wipro Ltd bagged a mega deal worth £500 million from Phoenix Group—the UK's largest long-term savings and retirement business. The 10-year strategic project is designed to deliver life and pension business administration for the Re Assure business and accelerate Phoenix Group's operational transformation.

In the IT sector, mega deals are high-value contracts, typically with a total contract value (TCV) of $500 million or more. Such deals are a significant driver of revenue growth trajectory. This is Wipro's second mega-deal over the past four quarters and marks its entry into an account that has been a stronghold for peer Tata Consultancy Services Ltd, said a Kotak Institutional Equities report dated 27 March. In June, Wipro had announced a $500-million mega deal with a US-based communications service provider for five years.