Wipro acquiring SAIC's oil and gas IT practice

About 1,450 staff will move from SAIC to Wipro as a result of the acquisition

Indian outsourcer Wipro is acquiring the oil and gas IT services practice of the Commercial Business Services business unit of Science Applications International Corporation (SAIC).

Wipro said on Friday that it is acquiring the business for an all cash consideration of about US$150 million, subject to unspecified adjustments.

Indian outsourcers are looking for acquisitions that will either bring them horizontal expertise, or deep domain expertise and clients in the industry verticals that they are focusing on, said Sudin Apte, principal analyst and CEO of Offshore Insights, a research and advisory firm in Pune, India.

The acquisition of SAIC’s oil and gas practice will give Wipro access to customers in government and the public sector, Apte said. SAIC also bundles its services with high-quality intellectual property, which will now be available to Wipro as it addresses the oil and gas sector, he added.

SAIC is selling to Wipro its U.S. oil and gas IT services business along with subsidiaries located in the U.K., France, India, and the Middle East that are predominantly focused on the oil and gas market. These operations employ about 1,450 persons who will move to Wipro.

The sale of these operations will enable SAIC to better focus on its strategic growth areas, including market segments in the energy sector, such as smart grid, renewable energy implementation, and energy efficiency, where it has built its business through organic growth and acquisitions, SAIC said.

To grow its oil and gas IT services business would have required investments in areas outside SAIC’s strategic focus, including increasing its off-shore capabilities, the company said.

Wipro is India’s third largest outsourcer. For the quarter ended Dec. 31, Wipro reported revenue growth in its IT services business that was lower than that of its peers in the Indian outsourcing industry like Infosys Technologies and Tata Consultancy Services. Following the lackluster results, the company said in January that it would replace the joint CEOs of its IT business with a single chief executive.

The completion of the acquisition of SAIC’s oil and gas IT practice is subject to customary closing conditions and regulatory approvals, Wipro said. A Wipro spokesman said it hopes to complete the acquisition in the current April-June quarter.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesservicesoffshoringMergers / acquisitionsoutsourcingwiproSAIC

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?