Wipro secures $143 mn outsourcing deal from Levi Strauss

IT services major Wipro has bagged a $143 million 5-year outsourcing deal from Levi Strauss as the US-based denim apparel maker looks to cut 500 jobs in a restructuring exercise.

The restructuring, first announced in March 2014, is expected to generate net annualised cost savings of $175-200 million for Levi Strauss once fully implemented.

"The company will pay Wipro for the services through a combination of fixed and variable charges, with the variable charges fluctuating based on the company's actual need for such services. The company expects to pay Wipro a minimum of approximately $143 million over the initial term of the agreement," Levi said in a regulatory filing to the US SEC.

Earlier this week, Levi had said that it will eliminate around 500 positions, primarily the outsourced services as well as further reduction of management layers, removal of duplicative roles and other structural changes.

In a statement, Levi said: "In this next phase of the productivity initiative, approximately 500 positions will be eliminated, primarily due to the decision to partner with Wipro."

Wipro will provide support for certain business services within information technology, finance, human resources, customer service and consumer relations, it added.

Wipro Technologies (Wipro Ltd)