Meta reduces Wipro IT contract by 25% amid AI overhaul

Meta Platforms has reportedly reduced the volume of IT work outsourced to Wipro by at least 25%, following an artificial intelligence-led restructuring that included the closure of its digital marketing division.

According to a report by Mint, the decision is expected to lower Wipro's annual revenue from Meta to around US$75 million, down from approximately US$100 million in fiscal year 2026. The publication cited two people familiar with the matter.

The reported reduction reflects how AI-led operational changes are beginning to reshape long-standing outsourcing relationships between global technology companies and IT service providers.

Digital marketing work brought back

The reported contract reduction follows Meta's decision to stop outsourcing its digital marketing work, reducing the scope of services handled by Wipro.

According to Mint, the change forms part of a broader AI-driven restructuring within Meta that resulted in the closure of the company's digital marketing division.

Wipro has worked with Meta for several years, with the social media company ranking among the Indian IT firm's top 20 clients.

Key reported developments

• Contract reduction: At least 25%
• Estimated annual revenue from Meta: Around US$75 million
• Previous annual revenue: Approximately US$100 million in FY2026
• Reason cited: AI-driven restructuring and closure of Meta's digital marketing division

Other outsourcing partners also affected

According to the Mint report, Wipro was not the only outsourcing partner impacted by Meta's decision.

The publication reported that Concentrix Corporation, Teleperformance SE and Accenture Plc also experienced reductions after Meta scaled back outsourced digital marketing work.

The reported changes suggest the restructuring affected multiple service providers supporting Meta's marketing operations.

AI continues to reshape outsourcing strategies

The reported development highlights a broader shift across the technology industry as companies increasingly use artificial intelligence to redesign business processes and reassess external service contracts.

Rather than simply introducing new AI tools, organisations are reviewing which activities continue to require external partners and which can be streamlined through automation or organisational restructuring.

For IT service providers, the trend reinforces the growing importance of expanding capabilities in AI, cloud, consulting and enterprise transformation as traditional outsourcing engagements evolve.