Wipro Aims to Reduce Headcount by 30% through Automation

T K Kurien, CEO of Wipro, has announced that he expects his company’s recent investments in automation and artificial intelligence to bring about a 30 per cent reduction in headcount over the next three years.

He added that this will not lead to employees being laid off; rather attrition will be balanced with redeployment to new, high growth revenue streams.

Kurien believes that Wipro’s main future focus will be digital technology. “We expect digital to be among the top three service lines in the next three years,” Kurien revealed, speaking at Wipro’s analyst day.

TCS and IBM lead race for Volvo’s $500 million IT contract

Tata Consultancy Services and International Business Machines have emerged as frontrunners in the race to win Swedish truckmaker AB Volvo’s IT outsourcing contract, worth about $500 million, according to people familiar with the matter.

As part of the deal, which is expected to stretch over three to five years, Volvo will outsource its IT business unit, they said, adding that HP and Infosys are among the other firms being evaluated. Volvo may give out business worth at least $100 million a year as part of this deal, they said, requesting anonymity.

“The deal should be finalised within a month—at the moment Volvo is facing a lot of heat to cut costs and any business which is non-core and not making money for the company is under the pump right now,” one of the persons quoted earlier said. “Volvo IT is more of a cost centre for the company, and for them it makes sense to hand it out to professional outsourcing firms.”

Volvo confirmed that the company is evaluating external service providers for the contract, but declined to give the names of vendors being evaluated. Volvo said the initiative would help reduce costs.

“For the external business and the operation of our IT infrastructure we have initiated a process to find an external partner. Our assessment is that this will be more cost-effective for the group.

We will keep application development and maintenance of business critical systems and accelerate efficiency improvements in this part of the operation,” a spokeswoman for Volvo said in an email response to ET’s query.

“This is an ongoing process and we do not intend to leave any comments until we have finalised an agreement with an external partner,” she added. An email query sent to IBM in this regard remained unanswered till as of press time. TCS declined to comment.

Volvo’s decision to outsource comes at a time when the company is facing enormous pressure from shareholders to boost profit margins. The Swedish firm’s move to overhaul in the face of stiff competition from rivals such as Scania AB saw the exit of Olof Persson as CEO earlier this year.

Source: TCS and IBM lead race for Volvo’s $500 million IT contract

Capgemini Wins Multi-Million Pound Contract with Nokia, Extending Deal to 2020

Capgemini has secured a multi-million pound contract extension with Nokia, meaning the global BPO company will continue to provide Nokia with worldwide order management operation services until at least 2020.

The original contract, which involved preparation for delivery, distribution and customer invoicing, was due to expire in 2017. It is now confirmed that Capgemini will continue to provide all of these services for Nokia.

C-level representatives from both sides have expressed their delight with the contract renewal.

“We are very pleased to continue and deepen our relationship with Capgemini building on a successful Supply Chain transformation partnership initiated in 2010, which has resulted in cost optimization, quality enhancement and global process harmonization,” said Johannes Giloth, Senior Vice President Global Operations at Nokia Networks.

“We recognize Capgemini as Supply Chain experts and look forward to developing our relationship into new areas to support our business growth.”

Source: SourcingFocus-Capgemini Wins Multi-Million Pound Contract with Nokia, Extending Deal to 2020

Accenture Buys Salesforce Consultant Tquila

Accenture has acquired the independent Salesforce implementation partner Tquila. The acquisition means significant growth for Accenture’s Emerging Platforms business, increasing Accenture’s presence as a Salesforce services provider.

The merger will make Accenture one the UK’s biggest Salesforce providers, with a total of 185 consultants.

Emma McGuigan, Accenture Technology’s managing director for the UK and Ireland, explained the thinking behind the merger: “We have seen significant growth in SaaS as more companies adopt the cloud and digital strategies to collaborate better, drive greater operational efficiencies and accelerate the development of new products and services.”

The acquisition comes at a time when Salesforce itself may be up for sale. The CRM software market leader has recently been courted by the likes of IBM and Oracle; it is thought that only SAP, Apple, Microsoft, IBM and Oracle could actually afford the takeover.

FBI to Outsource $100 Million of Services

The Federal Bureau of Investigation (FBI) is requesting proposals from external suppliers for professional, management and support services for up to $100 million.

The provider will be expected to offer a wide range of support services, including “providing consultation, data collection and analysis, intelligence interviewing, training, and assisting with project implementation and management, and policy and program development”.

The request for proposals is expected to be released by 6th May, with the contract to be awarded by September.

Mastercard offshores payment technology development

Finance firm Mastercard has committed to growing its India-based workforce with its latest technology hub in Pune.

The centre is Mastercard’s largest outside the US and will focus on developing payment technologies.

Mastercard hopes to dip into the IT skills in India and the current trends seeing successful startups coming out of the country.

“India is renowned for its technology leadership, focus on innovation and entrepreneurial spirit,” said Rob Reeg, president for operations and technology at Mastercard. “The tech hub gives Mastercard the opportunity to bring in talented technologists and a wealth of creative new ideas that will help shape the future of payments.”

Read more at: Mastercard offshores payment technology development by Karl Flinders

Deutsche Bank and HP ink multi-billion dollar IT outsourcing pact

Deutsche Bank has signed a ten-year, multi-billion dollar deal to outsource a large chunk of its wholesale IT infrastructure to HP.

Under the terms of the agreement, HP will provide dedicated data centre services on demand including storage, platform and hosting.

Deutsche Bank will retain activities such as IT architecture, application development and information security.

As part of a wider IT transformation programme, Deutsche Bank says it will upgrade and reduce the number of its IT applications, move them on to the HP platform and enhance its own processes for providing technology support to its operations.

Henry Ritchotte, chief operating officer of Deutsche Bank, says: “This agreement enables Deutsche Bank to secure standardised, world-class IT infrastructure while lowering costs. Having a more modern and agile technology platform will further improve the Bank’s ability to launch new products and services and lay the foundation for the next phase of its digital strategy.”