Legacy IT outsourcing companies in India continued acquiring aggressively in 2015. Most of the acquisitions were made in areas such as design and automation to help the companies cut costs, and stay ahead of the innovation curve.
“IT services companies have realised that it is not possible to adapt to new demands from clients organically, so they are basically sourcing innovation through these acquisitions,” Sanchit Vir Gogia, chief analyst and CEO of advisory firm Greyhound Research, told Quartz.
“The year 2016 will be much bigger in terms of inorganic growth for IT services companies,” Gogia of Greyhound Research explained, “because there’s a lot more capabilities that they need to have before becoming a serious player in new tech areas.”
Source: Quartz