Wipro and METRO sign $700 million Digital Transformation deal

Wipro has now signed a 5-year digital transformation deal with the German wholesaler, METRO for $700 million.

The company revealed that it will take over IT units METRO-NOM in Germany and METRO Systems in Romania. The announcement noted that around 1300 employees from these units will be transferred to Wipro.

Timo Salzsieder, CIO, METRO AG, said, "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."

Thierry Delaporte, Chief Executive Officer, and Managing Director, Wipro Limited, 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. 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 the METRO is a significant and strategic partnership."

The agreement is expected to extend for around 4 additional years and can incur a potential spend of $1 billion. Wipro said that it will deliver the latest technology, engineering, and custom transformation program for METRO. 

The transformation program will encompass cloud, workplace, data center, and networking services. It will also include the application development and operations to provide an integrated, robust, and flexible digital infrastructure.

METRO seeks technological support of a robust digital infrastructure at a stage where it says it is ready to focus on the activities that are going to provide the strongest possible competitive advantage.