India's third-biggest software exporter Wipro has been empanelled by General Electric as one of the outsourcing vendors as part of a master services agreement (MSA) signed between the companies recently, at least three persons familiar with the transaction told ET last week.
The agreement with GE will allow Wipro to bid for nearly $1 billion worth of outsourcing projects fleshed out by different business units of GE every year, against rivals Tata Consultancy Services (TCS) and Genpact.
"While it does not in any way guarantee assured contracts, GE is a good account to have for long-term, annuity-based revenues because even if the micro environment is bad, one of the GE units would have something to outsource, offshore," said a senior executive at one of the tech firms currently serving GE. He requested anonymity because he is not authorised to comment about his company's customers.
Outsourcing experts and officials familiar with GE's offshoring to Indian vendors said while TCS does nearly $150-200 million worth of projects for GE annually, Genpact and others could together account for over $700 million offshoring. When contacted by ET, a Wipro spokeswoman declined to offer any comments. A GE spokeswoman, too, did not respond to an ET query sent last week.
For Wipro, GE is not entirely a new customer. In fact, when Jack Welch visited India around two decades ago scouting for partners to sell his company's healthcare products, Wipro's Azim Premji was one of the first partners for Mr Welch. "They did start healthcare business and an outsourcing alliance later, however, since 2000 Wipro has not been doing any significant outsourcing work for GE - in many ways, this is a great comeback," said another person familiar with the agreement.
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