The Economic Times
English EditionEnglish Editionहिन्दी
| E-Paper
Search
+

    Wipro loses Nike’s SAP maintenance project due to delays

    Synopsis

    This development comes at a time when IT services firms are increasingly pushing for annuity contracts from clients amid growth challenges.

    Agencies
    Clients have been pushing software services providers to cut costs on maintenance projects, often expecting vendors to use automation tools to improve productivity.
    Wipro has lost a SAP maintenance project from Nike after it delayed implementing the business software for the sports shoe and apparel maker, two people familiar with the matter said, with one analyst pegging the deal size at between “$10 million and $40 million”.

    This development comes at a time when IT services firms are increasingly pushing for annuity contracts from clients amid growth challenges in the traditional services business. “There has been almost a year’s delay in implementation of SAP software for Nike and post completion, the company (Wipro) has lost the maintenance part for the same software to a rival,” one of the persons cited above told ET. “Nike decided to discontinue the SAP maintenance work a few months ago,” he said, adding that the software services major will, however, continue servicing other technology projects for Nike. “Wipro does not comment on specific client engagements,” said the company in response to a detailed email sent by ET. An email to Nike seeking details went unanswered.

    Clients have been pushing software services providers to cut costs on maintenance projects, often expecting vendors to use automation tools to improve productivity. SAP or Oracle implementation projects, at times, see changes in business requirement from clients that could result in different scope of work, analysts said.
    Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.

    5 Comments on this Story

    Aaaa Bbbb663 days ago
    Wipro lost DB maintenance project from Nike in 2010. Sap was with them, now it is also gone.
    Amitava Sanyal663 days ago
    Delay in implementation happens, but service providers character comes into picture to maintain a project. My experience with Wipro says the bosses in Wipro don''t listen to employees they only know to show bossism. Hope this would be a eye opener that those days are gone where you put employees in jail and ask them to work. They will work but out put will be ZERO. Remove all those who completed more than 10 years in mid level management. You will see results.
    Somasundar663 days ago
    I have never seen any IT Services company implementing ERPs without any delay. It''s unfair to blame the service providers without understanding the challenges faced by both the organizations.
    The Economic Times