Wipro Ltd will acquire certain contracts from an IT company in California for $71 million, bringing its total acquisition spending in the first month of the fiscal year to almost half a billion dollars as it chases growth in an uncertain macroeconomic environment.
The country’s fourth-largest tech services firm said on Wednesday it would acquire select contracts from Alpha Net Group, which specializes in enterprise software development, data engineering and managed services. These contracts fetched Santa Clara-based Alpha Net $37.3 million in revenue last calendar year.
“The business acquisition will enable Wipro’s access to certain key clientele, their customer contracts as well as the related workforce, which will augment Wipro’s existing AI-powered and consulting-led application services capabilities, thus helping drive new growth opportunities,” Wipro said in a filing with the stock exchanges.
The acquisition is expected to be completed by June. While Wipro is expected to pay up to $70.8 million for these contracts, a portion of the amount will be held back and paid only after Alpha Net meets certain performance goals and conditions.
This is Wipro’s second acquisition in less than as many weeks. On 6 April, Wipro acquired Mindsprint, the IT arm of Singapore-based food company Olam Group, for $375 million. It also won an IT transformation deal from the same client.
Both acquisitions bring Wipro’s total acquisition spending in the first month of the fiscal to $446 million, more than what it spent in the previous fiscal when it bought Harman Digital Transformation Services (DTS) in August for $375 million.
Wipro is expected to get at least $173.3 million in annual revenue from these two companies in the current fiscal – $37.3 million from Alpha Net’s clients and $136 million from Mindsprint. The incremental revenue is equivalent to 1.65% of Wipro’s annual revenue of $10.5 billion in FY25. The company is scheduled to announce its FY26 results on 16 April.
Revenue decline
Both acquisitions come as the company stares at the possibility of a third full-year revenue decline. In January, the company’s management expected fourth-quarter revenue of $2.64 billion-$2.69 billion, which implies a full-year revenue decline at the lower end of the range.
Macroeconomic uncertainties fuelled by the West Asia war could further dampen growth for the country’s IT services companies as their clients might pause spending on large IT contracts.
Alpha Net services will “augment Wipro’s existing AI-powered and consulting-led application services capabilities with focus on hi-tech (16% of Wipro’s revenue) and consumer (18.2%) verticals,” said Sushovon Nayak, lead IT analyst at Anand Rathi Institutional Equities.
He expects Wipro’s Alpha Net, Mindsprint and Harman DTS acquisitions to contribute 320 basis points (3.2%) to its IT services revenue growth in the current fiscal.
However, a second expert said this move was not aimed at buying growth but to “repair momentum.”
“It is a pragmatic move to plug gaps in vertical depth and accelerate near-term revenue, but it does not yet constitute a full pivot to inorganic-led growth. The real test is whether Wipro can convert these assets into scalable, AI-enabled offerings rather than just absorbing revenue,” said Phil Fersht, chief executive of HFS Research.
Acquisition spree
Wipro’s focus might be on smaller acquisitions in the future.
“They (Wipro) are likely to pursue more acquisitions but expect them to stay disciplined and selective. Wipro does not have the balance sheet appetite or integration track record to go on a large buying spree, so the focus will be smaller, capability-led deals that strengthen industry IP (intellectual property), data assets and AI execution,” added Fersht.
Wipro is not the only IT outsourcer on a spending spree.
On 26 March, Infosys Ltd said it plans to buy US tech services companies Optimum Healthcare IT and Stratus for a total of $560 million, taking its acquisition spending in a fiscal to an all-time high of $808 million.
Mint reported on 29 December 2025 that the country’s 10 largest IT services companies embarked on their largest shopping spree since the turn of the century, having announced $4.3 billion in acquisitions in FY26.
Wipro under chief executive officer and managing director Srini Pallia is looking at acquisitions to turn around the company’s fortunes. Pallia, who took over in the summer of 2025, faces a tough task.
For now, though, investors gave thumbs up as shares rose 3% as of 12:48 pm on Wednesday.
