Wipro has lost an SAP maintenance project from Nike after it delayed implementing the business software for the sports shoe and apparel maker, two people familiar with the matter said. This development comes at a time when IT services companies are increasingly pushing for annuity contracts from clients amid growth challenges in the traditional services business.
SAP or Oracle implementation projects at times see changes in business requirement from clients that could result in different scope of work, analysts said.
“That change does not go through negotiations between both the parties and that typically causes a time lag,” said Sanchit Vir Gogia, chief executive, Greyhound Research.
Analysts said there could be several reasons for discontinuation of the maintenance work — from quality of implementation to change of scope resulting in a time lag.
Analyst:
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.
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