NEW DELHI, India-Ericsson has decided to sell its three research and development (R&D) centers located in Bangalore, Hyderabad and New Delhi to Wipro Limited, a leading Indian information technology (IT) solutions and services company based in Bangalore.
Wipro announced in Bangalore it has signed a letter of intent with Ericsson to acquire all the software development resources, including the software professionals in relation to the three centers. Concurrently, Ericsson signed another letter of intent to outsource consultancy services for Wipro.
Completion of the transaction is subject to the completion of due diligence, negotiation and execution of definitive agreements and necessary government approvals, a statement from Wipro said.
“Ericsson has identified India as an important outsourcing location. Wipro’s technical depth and quality leadership make it an ideal long-time partner for software development for us,” commented Jam Campbell, managing director, Ericsson India.
The sale follows a similar sale last week of Ericsson’s R&D unit in Sweden. It also closed its Australian R&D lab this week as part of cost-cutting measures.
