It's not $300 million, it's just $27 million deal from GM: Wipro

BANGALORE: Wipro Ltd. said that a 5-year computer services deal with General Motors Corp. was far less than the $300 million reported a day earlier.

In its statement, Bangalore based company that the $300 million number, which has been reported as the value of the Wipro/GM IT re-sourcing announcement of February 2, 2006, is not accurate.

Wipro has won in direct bid, the Middleware Systems and IS&S tools worth $27 million over five years, said company, less than one tenth the original figure.

“Our current contracts with GM are expected to yield revenue of approximately $40 million this fiscal year ending March, 2006. The numbers reported as the value of this contract yesterday were purely estimates of future business we hope to attain with GM and other IT suppliers supporting GM's business,” said company in its statement.

Wipro on Thursday had said its share of the GM contract was estimated at $300 million over 5 years in a press conference. GM awarded computer services contracts totaling about $15 billion over five years to EDS, IBM, Capgemini, Compuware Covisint and Wipro Ltd.

Sudip Banerjee, President of enterprise solution group of Wipro had said that the revenue from the contract would start flowing from the second quarter of Wipro's next fiscal year, which ends in March, 2007.