Wipro's stock in focus on Thursday following £500 million deal with Phoenix Group

Wipro, India’s fourth-largest software services company, will be closely watched on Thursday, March 27, 2025, following the announcement of a major 10-year contract with Phoenix Group, a leading UK-based insurer. The contract, valued at £500 million ($644.7 million), will see Wipro provide life and pension business administration services for Phoenix Group's ReAssure business.

This deal, announced in a regulatory filing on March 26, 2025, is Wipro's second large contract this fiscal year, reinforcing the company's position in the IT services sector. Earlier in June 2024, Wipro signed a similar $500 million deal with a U.S.-based communications provider.

As part of the contract, Wipro’s entity, Wipro Financial Outsourcing Services Limited (WFOSL), will handle various administrative tasks such as policy administration, claim processing, customer service, data management, reporting, and compliance. The collaboration will also see some Phoenix Group employees transition to Wipro, though the exact number was not disclosed.

Wipro will modernize Phoenix Group’s 'ALPHA' platform, utilizing AI, automation, cloud, and digital technologies to enhance customer experiences for the insurer’s policyholders. This transformation initiative aligns with Phoenix Group's strategic goal of accelerating its operational processes.

The contract is a key milestone for Wipro in its ongoing growth strategy. Omkar Nisal, CEO of Wipro’s European operations, emphasized that the deal underscores the company’s expertise in serving financial institutions and further establishes Wipro as a major player in the Life and Pension Third-Party Administration (TPA) sector in the UK.

In addition to strengthening its service offerings, Wipro will establish more technology and operational service hubs in the UK to enhance customer experience, supported by experts from both Wipro and Phoenix Group.

Wipro Stock Performance: On March 26, Wipro's stock opened at ₹272 but dropped to ₹266.65 before closing at ₹267.25, marking a 1.42% decline on the BSE. Over the past five sessions, Wipro’s share price has fallen by 2%, and it has decreased by nearly 10% in the last month. Year-to-date, the stock has shed 11%, although it has gained 12% over the past year.

Disclaimer: The information provided is based on individual analyst opinions and may not reflect all market conditions. Investors are advised to consult certified experts before making any investment decisions.