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Assa Abloy outsources IT transformation to Wipro

Swedish lock maker has outsourced its IT infrastructure to Indian IT services firm

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Swedish lock manufacturer Assa Abloy is moving to a cloud-based service model under a five-year IT infrastructure outsourcing deal with India’s Wipro.

The contract will see Assa Abloy’s EMEA datacentre network consolidated with pay-as-you-go pricing.

Jens Nielsen, CIO at Assa Abloy, said the company hopes to receive innovation input from Wipro as well as cost savings. “With our datacentre infrastructure supported by Wipro, we can drive added efficiencies and, most importantly, bring about joint innovations to serve our customers better,” he said.

Assa Abloy has 44,000 employees across 70 countries and has annual sales of about SEK 57bn (£4.6bn)

Its datacentre services will be moved to a Wipro service called BoundaryLess Data Center (BLDC) with a global delivery model created through a Wipro managed service framework. 

Wipro last week announced an infrastructure-as-a-service (IaaS) deal with RSA Insurance. The mainframe, mid-range, storage, cloud and user services agreement also covered Scandinavia.

Offshoring specialist Peter Schumacher, director at business consultancy The Value Leadership Group, said that while IT spending and budgets at European firms are expected to remain flat or even fall marginally this year, organisations are shifting more work to offshore services firms.

“Offshore services firms will continue to gain market share in Europe in 2016,” he added.

Read more about Indian suppliers in Europe

Schumacher said Assa Abloy is a good example of a large European firm using the global delivery model across its business.

He added that Wipro’s deals with Assa Abloy and RSA Insurance “reflect the new dynamism that its new CEO, Abid Neemuchwala, is bringing to the business”.

According to Gartner, the global IaaS sector of the public cloud market is expected to see the fastest growth in 2016 as enterprises continue to shift their datacentre assets off-premise.

The analyst firm’s latest public cloud growth projections suggest the IaaS market is on course to account for about $22.4bn of public cloud spend in 2016, achieving growth of 38.4%.

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