Indian IT services supplier Wipro Technologies has acquired a business unit from Science Applications International Corporation (SAIC) for $150m to strengthen its services offering in the oil and gas industry.
India's third biggest IT supplier has acquired the Global Oil and Gas Information Technology practice of the Commercial Business Services business unit of SAIC, which supplies consulting, system integration and outsourcing services to major energy companies.
About 1,450 employees are expected to tranfer to Wipro.
IT spending in this sector is set to increase and Wipro's Energy, Natural Resources and Utilities unit is already one of its high growth operations.
"Oil & Gas companies are investing in the upstream business while looking at rationalising cost through IT. The acquisition of SAIC's Global Oil & Gas Information Technology practice will strengthen Wipro's existing Energy business unit in becoming a long term strategic partner in our customer's transformation journey," said Anand Padmanabhan, senior vice-president, Energy, Natural Resources and Utilities.
A report on the BP well blow out in the Gulf of Mexico last year, carried out by the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling on President Barack Obama's orders, revealed that Oil company's required more investment in IT systems to provide early warnings of problems. It also showed that algorithmic software has a place in preventing a repetition of the disaster.