New York, Nov 13 (IANS): Leading denim apparel maker Levi Strauss & Co has entered into an agreement with Indian software major Wipro Ltd. to outsource its IT services at a value of $143 million (Rs.880 crore) for the next five years.

"We will pay Wipro $143 million for outsourcing certain (IT) services from the first quarter of 2015 through a combination of fixed and variable charges," Levi Strauss said in a regulatory filing with the Securities Exchange Commission (SEC) here.

A Wipro spokesman in Bengaluru confirmed the development Thursday, saying the IT bellwether had secured the multi-year outsourcing deal from Levi Strauss.

The restructuring initiative is expected to result in cost savings of $175-$200 million annually for the US-based global leader in jeanswear when fully implemented.

The $4.7-billion company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Dockers, Signature and Denizen brands.

"By partnering with Wipro, we will be eliminating about 500 positions (jobs) in our operations worldwide to reduce layers of management, increase spans of control and remove duplicative roles," Levi's chief financial officer Harmit Singh said in a statement later.

As part of the agreement, Wipro will provide support for business services within IT, finance, human resources, customer service and consumer relations.

"We are on a mission to transform the global firm to deliver sustained, profitable growth and reduce cost structure in line with revenue base," Harmit Singh added.

Levi's brands and range of products are sold in 110 countries worldwide through a combination of chain retailers, department stores, online sites and a global footprint of 2,600 retail stores and shop-in-shops.