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StorageTek in outsourcing deal with Wipro

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CIOL Bureau
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BANGALORE: Wipro Limited has signed an agreement with computer tape and disk storage maker Storage Technology Corp to develop software related to a key product. The tie-up with Wipro is part of a process under which StorageTek has decided to outsource both manufacturing and development activities related to the SN6000, which it has so far done in Minneapolis in the United States and Toulouse in France.



StorageTek said the outsourcing programme would affect around 200 workers in the two cities between now and March 2004, without giving further details. The outsourcing work in manufacturing will be transferred to Canadian contract electronics manufacturer Celestica Inc, StorageTek said.



"As part of this deal, we would be carrying out embedded software work for StorageTek at our centers in India and at its facilities overseas," a senior official from Wipro told Reuters. The company does similar product work with some of its telecom and computer makers.



Wipro's shares closed flat at Rs 1,326.75 at the BSE on Friday. On Monday, Wipro announced plans to acquire the research and development (R&D) staff and assets from Ericsson's local unit and use them to supply software R&D services to the Swedish firm, in its first total outsourcing deal in this area.



© Reuters Ltd.

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