US-based cloud-based human resources and benefits administration services provider, Alight, will pay $965 million to Wipro over a five-year period till 2028.
In a regulatory filing, Alight said its “expected cash outflow for non-cancellable service obligations related to its strategic partnership with Wipro is $147 million, $154 million, $162 million, $170 million and $332 million for the years ending 2023, 2024, 2025, 2026 and thereafter, respectively”.
In 2018, Wipro and Alight entered into an agreement to form a strategic partnership that would continue till 2028. In the 12 month-period ending December 31, 2023, Alight is expected to pay $147 million to Wipro. There is also a clause that says Alight would have been required to pay $316 million, if the company had terminated the Wipro agreement on December 31, 2022.
In September 2018, Alight made an agreement with Wipro, to transition its India operations to the Indian tech major. As part of the agreement, about 9,000 of Alight’s employees were transferred to Wipro. Alight agreed to purchase a minimum of $1.53 billion in services from Wipro over the course of 10 years till 2028. Wipro in 2018 in a statement had stated that this was its largest win to date.
