Indian IT to see more acquisitions in near future
Tuesday, 07 September 2004, 19:30 IST
Printer Print Email Email
CHENNAI: The recent spate of acquisitions in the Indian IT sector is expected to gather steam in the near future with bigger companies eyeing smaller niche players, according to industry experts. The acquisitions signal the start of a consolidation phase in the sector that would result in the emergence of 10-15 global players, experts said. In the last two to three weeks alone, at least three acquisitions have been clinched - Singapore-based Flextronics acquired FutureSoft of Chennai, BPO service provider ICICI OneSource bought majority stake in Illionois-based Pipal Research and Chennai-based IT service firm Helios & Matheson acquired US-based Maruthi Info Tech and its offshore arm in Chennai Jayamurthi Software Systems. "We believe that these acquisitions are a clear indication of the coming consolidation in the sector. Over the next few years, we believe that this consolidation will gain momentum," said managing director of Nasdaq-listed Cognizant Technology Solutions, R Chandrasekaran. Cognizant alone made three acquisitions -- US-based Aces, Amsterdam-based Infopulse and Pune-based Ygyan -- in the last few quarters. "The trend is for the good as the sector is steadier and more stable now," said Bangalore-based Global Automation Pvt Ltd managing director S Gopalan.
Source: IANS
siliconindia