Wipro extends gains on extending multi-year deal with UK insurer

Shares of Wipro Limited traded 0.5 percent higher at Rs 424.30, extending gains to the second session on December 13 after it announced an agreement with a UK-based insurance firm to help accelerate its migration to cloud.

In the previous session, the stock climbed 0.4 percent to end the day at Rs 422.20 on the NSE.

RSA, a London-headquartered insurance company, has been a customer of the Indian IT services firm since 2016. As per the new agreement, the IT major will assist in providing a variety of operational services, Wipro said in an exchange filing on December 12. The scope of work also includes enhancing the customer and employee experience at RSA through automation.

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“Under our enhanced scope, we will accompany them on their modernisation journey by addressing their technology and regulatory needs”, Wipro’s UK, and Ireland MD Omkar Nisal said. “Through cloud technology and industry-leading cybersecurity frameworks, we will further strengthen and scale RSA’s business,” he added

The agreement comes at a time when the firm is seeing a churn in senior management ranks. The IT services player recently announced the resignation of chief growth officer (CGO) Stephanie Trautman, the latest in a string of top level exits at the company.

Global brokerage Morgan Stanley stuck to its “underweight” call on Wipro, with a share price target of Rs 370 following Trautman’s resignation.

The senior management exits over the past 12 months were a great cause of concern for investors, Morgan Stanley said. The chief growth officer had a pivotal role in managing the large-deal team. The team’s primary focus was on scouring large deals for the company via market advisers and consulting various channels, it said.

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