Shares of Wipro Limited edged up about 1% on Monday after the company announced an 8-year, AI-led transformation deal with Olam Group. The total contract value is expected to exceed $1 billion (over Rs 9,000 crore), making it one of Wipro’s largest deals in recent years.
The agreement comes at a time when India’s IT sector faces slowing discretionary spending and cautious client budgets.
Wipro will deploy its AI-powered platforms to modernize Olam’s operations across the entire agri value chain. The scope includes farm-level insights, supply chain optimization, trading systems, and customer engagement.
The company will also acquire Olam’s technology services arm, Mindsprint, in a deal valued at around $375 million. This acquisition is expected to strengthen Wipro’s domain capabilities while ensuring long-term engagement with the client.
The markets responded favorably because it brings revenue visibility, especially at a time when demand is uncertain. With multi-year contracts, earnings predictability increases, and the client's trust is reinforced. Furthermore, the deal shows Wipro’s focus on becoming an AI leader in delivering transformation services, something that IT firms have started banking upon.
This is indicative of Wipro moving its strategy away from being a mere IT outsourcing firm to providing complete solutions. This will help position Wipro strategically in industries like agri-tech and digital supply chain, which need comprehensive transformation services.
Though the market response hasn’t been great yet, the success of Wipro lies in its ability to close deals in the coming quarters. If not, then it would be difficult to reverse its fortunes.