Bangalore: Netherlands-based electronics giant Royal Philips Electronics has signed multi-year contract with software firms Wipro and Cognizant, estimated to be around USD 250-million.
While the companies declined to comment on the size of the deal, sources said it could be close to USD 250 million.
"Both Wipro and Cognizant would help us to simplify the IT platforms of Philips and support in our business transformation programme.
"With the help of these partnerships, we intend to drive transformation without structurally increasing overall investment," Royal Philips Electronics CIO (Markets) Unnikrishnan Nair said in an emailed statement.
When asked about the share of the contracts between the two vendors, Nair said the focus was on "working together as partners rather than drawing borders and discussing SLA (service-level agreement) between partners".
Wipro said in a statement it will work with Philips on their transformational roadmap towards optimising and enhancing business processes of "Idea to Market, Market to Order and Order to Cash".
It will also be the system integrator for key initiatives across these businesses and platforms.
"Wipro will leverage its strong understanding of the business domain and capability in new and emerging technologies to enable Philips become more agile, deliver innovative products and solutions to its customers, faster and strengthen their leadership position in the market place," Wipro Technologies Senior VP and Global Head (Manufacturing and High-tech) N S Bala said.
Cognizant, on the other hand, will provide a range of consulting and application services globally to help Philips consolidate, rationalise and enhance its IT landscape.
"This engagement underscores Cognizant's expanding footprint in Continental Europe, which is a result of our strategic focus on the region as an important market looking to drive cost-savings and innovation on one integrated platform," Cognizant Head of Continental Europe Santosh Thomas said.
Both Cognizant and Wipro had small engagements with Philips earlier, Nair said.
First Published: Tuesday, July 24, 2012, 09:37