Indian IT firms, especially in the mid-tier segment, have seen a rise of private equity firms placing stakes on them. While faster technology at mid-size IT services companies have attracted PE firms such as Blackstone, Carlyle, ChrysCap, Bain Capital, The Baring Asia and others to invest in the sector; PE-backed companies have seen faster growth at a time when their large listed peers slowed down due to uncertain market.
“With deal size and terms squeezing dramatically in IT services, the way of doing business is changing, starting from technology to people and geographies. That jump (of transformation) takes 36-48 months. In that time frame, companies have to invest a lot of money and PEs see that as a great opportunity of business transition,” said Sanchit Vir Gogia, Chief Analyst, Founder & CEO of Greyhound. He adds that large listed firms have a commitment to deliver quarterly numbers while driving change, unlike PE-led companies.
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Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Knowledge Group, a Global Strategy & Transformation Research, Advisory & Consulting Firm. To read more about him, click here.
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