Wipro to Acquire Harman Connected Services for $375 Million in AI-Focused Bet

Indian IT major Wipro Ltd. has announced plans to acquire Harman Connected Services (HCS), the digital transformation solutions arm of Samsung-owned Harman International, in a deal valued at $375 million. The move underscores Wipro’s growing emphasis on AI-driven engineering and product development services, a space where demand is accelerating globally.

The agreement will bring more than 5,600 employees from Harman Connected Services across the Americas, Europe, and Asia into Wipro’s workforce. The acquisition is expected to close by the end of this year, pending regulatory approvals.

For Wipro, the deal is positioned as a strategic step to bolster its AI-led engineering services and digital transformation capabilities, areas where global enterprises are ramping up investments to stay competitive. Harman Connected Services, which also operates R&D centers in India, has long supported clients in automotive, cloud, and IoT-driven businesses—sectors now converging with AI adoption at scale.

Strategic Industry Implications

The acquisition signals a broader industry trend of IT services companies strengthening engineering R&D portfolios to meet rising enterprise demand for AI, connected technologies, and digital platforms. With HCS under its umbrella, Wipro gains not just technical expertise but also access to a well-established client base spanning high-growth sectors.

For Samsung’s Harman International, best known for consumer audio brands like JBL and Harman Kardon, the sale allows it to sharpen focus on its core businesses while ensuring continuity for HCS employees and clients under Wipro.

Business Impact

This transaction highlights how Indian IT firms are competing on the global stage by pursuing value-accretive acquisitions rather than relying solely on organic growth. Analysts say such moves could help Wipro close the capability gap with peers in AI-powered engineering and drive long-term growth in its digital business.

Summary 

Wipro’s $375 million acquisition of Harman Connected Services strengthens its position in AI-led engineering and digital transformation, adds a global workforce of 5,600, and aligns with the industry shift toward advanced R&D-driven services. The deal also signals increasing consolidation in the IT services sector as companies chase high-value, AI-centric growth opportunities.

Frequently Asked Questions (FAQs)

1. What is Wipro acquiring in this deal?

Wipro is acquiring Harman Connected Services (HCS), the digital transformation solutions arm of Samsung’s Harman International, for $375 million.

2. Why is this acquisition important for Wipro?

The deal strengthens Wipro’s AI-led engineering services and digital transformation portfolio, helping it compete with global peers in next-generation technology services.

3. How many employees will transition to Wipro?

More than 5,600 HCS employees across the Americas, Europe, and Asia will become part of Wipro’s workforce after the acquisition closes.

4. When will the transaction be completed?

The acquisition is expected to close by the end of 2025, subject to necessary regulatory approvals.

5. What industries does Harman Connected Services serve?

HCS supports clients in automotive, cloud, IoT, and AI-driven businesses, with strong R&D operations in India.

6. How does this deal benefit Samsung’s Harman International?

By selling HCS, Harman International can sharpen its focus on its core audio and consumer technology businesses such as JBL and Harman Kardon.

7. What does this mean for the IT services industry?

The acquisition highlights a broader trend of IT firms investing in engineering R&D and AI, signaling consolidation in the sector as companies chase advanced digital transformation opportunities.

8. How will clients benefit from this deal?

Clients of HCS are expected to gain access to Wipro’s broader global resources, AI expertise, and digital platforms, ensuring continued innovation and service delivery.