Wal-Mart Stores Inc, the world's largest retailer, has picked three IT vendors including India's Infosys Technologies for multi-year contracts worth over $600 million, the Business Standard reported on Friday quoting unidentified sources.
The other vendors are Cognizant Solutions and UST Global, the newspaper said. Initially the three vendors are expected to earn Rs250-300 crore each annually, which will rise as Wal-Mart increases outsourcing more work.
The amount is roughly equivalent to the value of goods - textiles, handicrafts and other products - that the world's largest retailer sources from India every year.
Infosys and Cognizant, which will provide application development and support, are expected to get a larger share of the contract, while UST will be responsible for testing these applications, the paper said.
"What is more important is that these three vendors have now got a ticket to be in the club of Wal-Mart's list of preferred vendors which will help them in growing this account in the long run," the paper quoted the source as saying.
All the companies involved refused to confirm the development. "We do not comment on market speculation," a spokeswoman for Infosys said. A Cognizant spokesman also declined to comment.