|
With GDP growth of about 9% and wider expectations from analysts that in near future Indian economy can rule the globe, Indian business is on roller coaster ride.
Indian business, especially IT and ITeS segment is the backbone of this worth appreciating GDP growth. IT sector is just on its boom (seems retrenchment has hit India also); with appreciation of Indian workforce and accounting the milestones which Indian IT industry has touched in recent years, domestic market has eyed global expansion.
“Sky is the limit,” when you know where you are heading to. Correlating these words with success of Indian IT, the article entails the key acquisitions made by Indian IT:
1. Infosys, the leading IT giant of India, recently announced its plans to acquire UK based consultancy, Axon Group plc. The deal will be an all cash deal and company will purchase SAP consultant Axon for $753 million. The deal will be a landmark in Infy’s history as will give a ready made access to existing market of Axon in Europe. Also, Infosys can leverage Axon’s strength and consultation expertise to win big transformation deals in US and Europe, where Axon has a strong foothold. Last year, the Indian software giant announced its plans to acquire Philips Global’s finance and accounts BPO for assured revenue of $200 million.
2. The second big acquisition is made by outsourcing giant, Wipro Technologies. The outbound deal by Wipro purchasing US based InfoCrossing for price $600 million. It is a mega deal. Such acquisitions are key propellers for Indian IT firms as they help companies to enhance their foothold in domestic market along with the added advantage of resourcing. The biggest advantage of this acquisition is the direct entry to US markets where Infocrossing has strong foothold. Also, the company can leverage its hosted and managed services to provide IT outsourcing solutions.
3. The biggest IT deal has come neither from Infosys nor Wipro but has come out from a Bangalore based company, Subex Systems. Subex Systems is a leading telecom software product company and showed interest in purchasing UK-based telecom products company, Azure Solutions. The company planned to acquire Azure Solutions for $140 million and the deal was cash-cum-stock deal. The merger made the companies, world’s leading vendor of Telecom Revenue Assurance Systems. This was the biggest deal ever made by the Indian IT company so far. Just after the seven months of complete integration of both the companies, Subex-Azure announced the buy out of another company Syndesis Limited. It was an all cash deal.
4. The another key acquisition was made in BPO segment. In July, this year WNS Holdings Ltd. announced its plans to acquire BPO business of UK based insurance major, Aviva. WNS acquired Aviva’s BPO business Aviva Global Services for $228 million. Under the purchase agreement, company took over all shares of AGS and took complete control over operations in Bangalore, Colombo, Pune and Chennai. Beside these captive operations, the WNS will offer BPO services to Aviva’s UK and Canadian operations.
These were the acquisitions that transformed the Indian IT scenario and made Indian companies to unfurl their flag of expansion on foreign lands. Such acquisitions offer not only a strong presence in domestic markets but also provide them chance to be renowned as global brand.
www.itvoir.com/portal
www.itvoir.com/portal/boxx/knowledgebase.asp?iid=1176&Cat=23
|
|
SIGN
UP FOR FREE
