Wipro clarifies General Motors deal

Wipro clarifies General Motors deal

Indian IT firm Wipro has clarified that their recently signed on deal with the world’s largest automaker General Motors is for far less than the $300 million reported in the media. This contract is being seen as a major win for an Indian IT company.

The company claimed that the deal is instead worth just around $27 million and it is spread over a period of 5 years. The media reports claimed that the deal was worth $300 million. This led to the company clearing up the whole issue for the media and the investors alike.

Wipro said in a statement released to the media: “The numbers reported as the value of this contract yesterday were purely estimates of future business we hope to attain with GM and other IT (information technology) suppliers supporting GM’s business.”

GM in addition awarded more contractual work to other companies like Electronic Data Systems, International Business Machines Corp., Hewlett-Packard Co., France’s Cap Gemini, and the Compuware Covisint unit of Compuware Corp.