The company is reported to be talking to private equity firms to finance the deal, which would involve the client spinning off its IT and back-office units into a separate entity owned by the client, Wipro, and investment groups. Wipro would then use the newly formed company to win the outsourcing megadeals that Indian companies have not had the scale to compete for in the US before.
The reported size of the deal would be unprecedented for an Indian services provider, and if true, would suddenly push Wipro into the outsourcing big league.
Wipro, which is the third largest technology company in India, would not confirm or deny the reports, citing its quiet period before releasing its quarterly financial reports, but CFO Suresh Senapaty did tell ComputerWire that the company was pursuing opportunities structured in this way. We evaluate all models, he said, including the one referred to (in the reports).
Last month Wipro lost two of its senior executives. Vice chairman Vivek Paul resigned to become a partner at Texas Pacific Group, a private investment firm, and Raman Roy left his position as head of Wipro’s BPO operations and is planning to form a clinical trials BPO company.
