Calgary utility outsources IT services to India’s Wipro

Calgary’s ATCO Group, a utilities and manufacturing company, has struck a 10-year multi-million deal to outsource its IT services to India’s Wipro Ltd. The deal includes Wipro buying ATCO’s I-Tek IT services division for $195 million.

“This alliance ensures ATCO can focus on growing our core businesses of structures and logistics, utilities, and energy while partnering with Wipro for strategic, innovative IT solutions required to support our global operations,” Brian Bale, ATCO’s senior vice-president and CFO said in a statement Friday. “Wipro’s deep domain capability and technology-leadership will also ensure we continue to deliver cost-effective services to our customers.”

The decision to outsource IT services was due in part to increasing regulatory challenges faced by ATCO’s utility companies when applying to the Alberta Utilities Commission to include IT costs, provided by ATCO I-Tek, for recovery in customer rates, the company said in the statement. By competitively outsourcing its IT services, ATCO is addressing the concerns expressed by the commission, it said.

ATCO is a conglomerate in a number of fields including manufacturing portable buildings used on construction sites, natural gas gathering and processing facilities, power generator plants and — until the sale — an IT solutions division.

Under the deal, Wipro — one of India’s largest IT outsourcing companies — and ATCO signed a series of master services agreements under which Wipro will provide the complete suite of IT services to ATCO, which could result in Wipro getting over $120 million a year for the next decade.

“We have traditionally had a strong position in the utilities space in Europe, and this engagement provides momentum to our business in Canada and Australia,” Anand Padmanabhan, who heads Wipro’s energy, natural resources and utilities division, said in a statement. “The alliance with ATCO enhances our capability to create, nurture and tap local talent to power our growth journey in Canada.”


Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Howard Solomon
Howard Solomon
Currently a freelance writer, I'm the former editor of and Computing Canada. An IT journalist since 1997, I've written for several of ITWC's sister publications including and Computer Dealer News. Before that I was a staff reporter at the Calgary Herald and the Brampton (Ont.) Daily Times. I can be reached at hsolomon [@]

Featured Articles

ADaPT connects employers with highly skilled young workers

Help wanted. That’s what many tech companies across Canada are saying, and research shows...

Unlocking Transformation: IoT and Generative AI Powered by Cloud

Amidst economic fluctuations and disruptive forces, Canadian businesses are steering through uncharted waters. To...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now