Meta Platforms (NASDAQ: META) has reduced its IT services outsourcing to Wipro Ltd (NYSE: WIT) by at least 25% following an artificial intelligence-driven restructuring that led to the closure of its digital marketing division.
The reduction was reported by Mint, which cited two people familiar with the matter, marking a significant shift in the commercial relationship between the two companies.
Wipro now expects to generate approximately $75 million in annual revenue from Meta, down from roughly $100 million during fiscal 2026.
That $100 million figure made Meta one of Wipro’s 20 largest customers, underlining the scale of the financial impact this decision carries for the Indian IT services provider.
The reduction stems directly from Meta’s decision to end outsourcing work related to its digital marketing operations, a division the company has since closed as part of its broader AI-led reorganisation.
Meta’s restructuring reflects a wider corporate trend among major technology companies to replace outsourced functions with internally developed artificial intelligence tools and platforms.
Wipro is not the only outsourcing provider to feel the impact of Meta’s strategic shift away from third-party digital marketing services.
Concentrix Corporation, Teleperformance SE and Accenture Plc have also seen their outsourcing engagements with Meta reduced as the social media giant continues to reshape its operations around greater AI integration.
The combined effect across multiple outsourcing providers signals that Meta’s operational transformation is broad in scope rather than a targeted reduction with any single vendor.
For the IT services sector more widely, the development raises questions about how quickly artificial intelligence adoption by major technology clients could erode traditional outsourcing revenue streams.
Wipro faces the challenge of replacing lost revenue from one of its most significant client relationships at a time when AI-driven insourcing is becoming an increasingly common strategy among large technology companies.
The full financial consequences for Wipro and the other affected providers will likely become clearer as companies report results in the coming quarters.
