A couple of months back I wrote about how cash rich Indian software companies are. I have also extensively covered the mergers and acquisition scenario in India which is making waves globally. Indian biggies seem to be acquiring global companies as if there is no tomorrow.
One of the major outbound deals announced recently was by Wipro. They bought US based InfoCrossing for a sum of nearly $600 million (close to INR 2400 crores). This is a mega deal, but still not the biggest deal that Indian companies have carried out this year.
Being in I.T Industry, I do understand the importance of these kinds of deal by Indian companies. It not only helps the Indian software firm to gain a strong foothold with local presence, but it provides with an added advantage of resourcing. As all of you know, the US government has a cap of 65000 H1B visas, which unfortunately will not be increased in near future. With such small number of visas available, it is extremely difficult for Indian software houses to expand aggressively. So the route of these acquisitions gives Indian companies added advantage of securing existing people from acquired company and also providing Indian people as part of Intra company transfers, which circumvent the requirement of getting the H1B visa for the person traveling to US.
According to this report in Information Week, there are lot more deals in pipeline currently, and we should see more acquisitions done by Indian outsourcing companies.
Here is an excerpt from that report:
“Indian companies are sitting on a lot of cash, $500 million to $1 billion,” said Ameet Nivsarkar, VP of research at Nasscom in an interview. Plus, “the valuation of Indian IT companies is high” compared with U.S. companies right now. “This is the right time” to do these large deals,” he said.
While big, the Wipro-InfoCrossing deal isn’t even the largest cross-border outsourcing acquisition this year. In June, Caritor — an application developer based in California, but whose 3,900 employees are predominately in India and whose founder is Indian — acquired U.S. IT services provider Keane in an $854 million deal backed by Citigroup Venture Capital.“It’s definitely possible” that there will be more of these bigger deals, Nivsarkar said.
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sir my self ravi i m doing engineering in electronics and communication i want to connect with u r company plz give me one chance for increase u r company trp plz sir if u need any type of servic from then i have no objection plz contect with me
Hi,
I want to share sumthng their is a company in NOIDA named FCS software solution LTD. in sec 57 and brance in noida phase – 2 in nepz. Its worst company i ever seen in my 4 yr career. i just join the comapny and on half day leave at 2 oclok hr calld me up told me u’ve to come offc whr r u. i told her i m nt feeling well so i can nt come today she told me u’ve to informe PM. i said plz gimme his no. so i talk him. she said ok and did’nt give me the no after 5 mint PM calld me up told me u’ve to come offc rite now other wise u’ll be punished. i nvr heared like this in my whole carrer i said sir im nt well feeling cold so i’ll cum tommrow. he is nt ready for that he said if u’ll nt come rite nw dont come tommarow. this is the menatlity of the PM he treated proggrammer as a Bandua Mazdoor all the team member come at 9 ant leave the offc at nite 3 or 4. i dont think so any body join this type of company so Beware about this….
Hi
I m anil presently doing MBA in Noida. it is a very horrible scenario if a company treats its employee in such way.u should fight along with yor colleagues against such autocracy.it should be the fight ofevery employee.
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