A major change in the global IT outsourcing landscape may affect Wipro after Accenture won a large technology services contract from The Estée Lauder Companies.
According to people familiar with the matter, Estée Lauder has shifted part of its IT operations from Wipro to Accenture. The move could cost Wipro nearly $100 million in annual revenue.
The work now being transferred was earlier part of a $500 million contract that Wipro secured in 2021. The agreement was structured for 5 years, which translated to around $100 million in yearly revenue for the Bengaluru-based IT services company.
Sources said the transition of technology services from Wipro to Accenture is currently in progress and may continue until July. Under the new arrangement, Accenture will manage several important IT operations for the cosmetics company. These include finance systems, database management, and backend technology services.
During a recent earnings call, Stéphane de la Faverie confirmed the collaboration with Accenture. He emphasised that the company selected Accenture “to transform how we deliver shared services globally as we accelerate the deployment of AI throughout the organization.”
Industry analysts say the development reflects rising competition in the global IT outsourcing sector, particularly as enterprises increase investments in artificial intelligence and digital transformation.
Some experts believe Accenture’s strong focus on AI transformation and integrated service delivery has helped it secure large enterprise contracts.
The shift also puts attention on Wipro’s growth strategy under Srini Pallia, who assumed leadership in April 2024 with the objective of strengthening deal flow and improving overall performance.
If the transition is completed, the Estée Lauder contract loss would represent roughly 1% of Wipro’s total revenue. This comes at a time when the company has already faced slower growth compared with some of its larger industry peers.
Despite this setback, Wipro has recently signed several large deals. These include a $650 million contract over 10 years with Phoenix Group in 2025 and a $500 million agreement with a US communications company in 2024.
The latest shift also reflects Estée Lauder’s ongoing restructuring of its technology operations. The company is working with fewer managed service providers while increasing the use of artificial intelligence across its global business.
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