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Abhrajit Gangopadhyay

Bangalore , Dec. 8

WIPRO Ltd has signed a master service agreement with its client, General Motors (GM). This umbrella contract encompasses all of Wipro's existing efforts with GM and gives licence to all its divisions to bid for the latter's projects independently, company sources said.

However, the company declined to comment. The agreement broadly outlines the pricing, delivery and penalties of GM projects with its vendors.

GM, which outsources its software needs to local vendors like Wipro, TCS, HCL and global players like Accenture and EDS, expects to outsource close to $400 million annually from the Indian vendors. It is understood that GM is "on the higher gradient to outsource more work to Indian vendors", a technology analyst of a foreign brokerage said.

"The agreement with Wipro is likely to be taken forward with similar agreements with HCL and TCS," the analyst said. According to analysts, the agreement is seen to boost Wipro's relationship with its long-term client, as more work is likely to flow in.

It can be recalled that GM had recently set up a technology development centre in Bangalore and earmarked $21 million annual investments over next three years to expand such operation. The technical centre supplements GM's global portfolio and supply engineering services and undertakes high value research and development initiatives for its centres worldwide. Under engineering services, CAD/Cam projects for the automobile major are undertaken and work on embedded software, real time system are also done here.

GM also has a technology tie-up with the Bangalore-based Indian Institute of Science to jointly conduct research in automotive structural materials and manufacturing process. Moreover, the GM's subsidiary, Delphi Automotive Systems, has a global technical centre in Bangalore.

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