Mergers and Acquisitions Scenario in It/Ites in India
|MERGERS AND ACQUISITIONS SCENARIO IN IT/ITES |
| |
|ERNST & YOUNG |
| |
|5/27/2009 |
| |
|SHIVA KUMAR A |
Contents
GEOGRAPHICAL M&A TRANSACTIONS 5
India 5
USA 6
Europe 7
Japan 7
Other World 8
COMPANY SPECIFIC TRANSACTIONS 8
IT Companies 8
ITES 8
COMPANY SPECIFIC ACQUISITIONS 9
SIZE 10
CAPTIVES 11
Obama’s Outsourcing Policy And Its Impact On Future Of Captives 11
PE’S AND VENTURE CAPITALISTS 12
VALUATIONS 13
FUTURE TRENDS 14
Mergers and Acquisitions scenario in IT/ITES
The success story of Indian IT/BPO is attracting a lot of growth opportunities. To achieve it potential the industry is taking an inorganic route to meet its demands. The industry has been much concentrating on the fast growing US market. With the subprime crisis, and the world on the brink of recession, it remains to be seen if the industry will still sustain its rapid growth. Every bad scenario has a built in opportunity in it. Likewise here the recession may prove to be a boon for the BPO’s. The focus on cost reduction is expected to increase, keeping in mind the current recessionary environment. Hence, the mileage will shift towards outsourcing. The future outlook is positive, leading to increased momentum for global sourcing.
There is a similarity between outsourcing and M&A activity. Both have significant opportunities in recession. When the economy slows down the concept of “survival of the fittest”
| |
|ERNST & YOUNG |
| |
|5/27/2009 |
| |
|SHIVA KUMAR A |
Contents
GEOGRAPHICAL M&A TRANSACTIONS 5
India 5
USA 6
Europe 7
Japan 7
Other World 8
COMPANY SPECIFIC TRANSACTIONS 8
IT Companies 8
ITES 8
COMPANY SPECIFIC ACQUISITIONS 9
SIZE 10
CAPTIVES 11
Obama’s Outsourcing Policy And Its Impact On Future Of Captives 11
PE’S AND VENTURE CAPITALISTS 12
VALUATIONS 13
FUTURE TRENDS 14
Mergers and Acquisitions scenario in IT/ITES
The success story of Indian IT/BPO is attracting a lot of growth opportunities. To achieve it potential the industry is taking an inorganic route to meet its demands. The industry has been much concentrating on the fast growing US market. With the subprime crisis, and the world on the brink of recession, it remains to be seen if the industry will still sustain its rapid growth. Every bad scenario has a built in opportunity in it. Likewise here the recession may prove to be a boon for the BPO’s. The focus on cost reduction is expected to increase, keeping in mind the current recessionary environment. Hence, the mileage will shift towards outsourcing. The future outlook is positive, leading to increased momentum for global sourcing.
There is a similarity between outsourcing and M&A activity. Both have significant opportunities in recession. When the economy slows down the concept of “survival of the fittest”