CIOReviewIndia Team | Tuesday, 22 December 2020, 15:23 IST
One of the leading global information technology, consulting and business process services company, Wipro Limited today announced a significant strategic digital and IT partnership deal with METRO AG, the leading global wholesale company, which is redefining the food service distribution industry.
Wipro will take over the IT units of METRO AG - METRO-NOM GMBH in Germany and METRO Systems Romania S.R.L. Under this partnership, 1,300 employees in Germany, Romania and India will transfer to Wipro, and provide them with new opportunities for advancing their careers, access innovation, work with leading digital technologies, and adopt new ways of working for enabling agility, speed, and scale in engineering.
The deal value estimates for the duration of the first five years is around $700 million. It intends to extend up to 4 additional years, it can be a potential spend of almost $1 billion. Wipro will be delivering a complete technology, engineering, and solutions for transformation programme for METRO as it positions itself as a Wholesale 360-degree provider in the hotel, restaurant and catering food industry fuelled by quality, focus and flexibility.
Wipro’s transformation programme will be encompassing cloud data center services workplace, and network services, along with application development and operations for providing an integrated, flexible and robust digital infrastructure for helping to drive METRO’s transformation agenda.
“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. The Metronomians who are transferring across to Wipro are going to have access to leading edge innovations that will accelerate their careers. I look forward to the continued close collaboration and partnership with the Metronomians who will continue to support our IT needs in 25 METRO countries,” said Timo Salzsieder, CIO, METRO AG.
At the centre of the partnership is the formation of a joint Transformation Office and Innovation Council which will be guiding the business through the transformation and ensure collaborative innovation throughout the partnership.
“Like us, METRO AG is focused on leveraging digital transformation for competitive advantage. Wipro’s role is to make that transformation efficient and effective. Equally important for us is welcoming 1,300 new colleagues to Wipro and ensuring this move is positive and empowering for each of them. Wipro and METRO share a great deal in terms of culture and values, which has guided our discussions throughout, and led to the formation of the joint Transformation and Co-Innovation Council. Our relationship with METRO is a significant and strategic partnership,” said Thierry Delaporte, Chief Executive Officer and Managing Director, Wipro Limited.
Announced previously, Wipro also plans for launching a Digital Innovation Hub in Dusseldorf, Germany for supporting METRO and other clients in the region. The upcoming Digital Innovation Hub will be serving as Wipro’s flagship centre in Europe and enable organizations for cross skill and upskill, besides supporting talent development in local communities. The Digital Innovation Hub aims for galvanizing adoption of new skills and technologies by companies for innovating and re-imagining their products, services, and improvement of operational efficiency. It will drive customer and employee delight, thereby transforming their ability for competing and market thriving.
The takeover is subject to customary closing conditions and regulation approvals, which is expected to close on or before April 30, 2021.
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