TCS Generates 20% Growth In Germany As Europe Emerges As New Hub For Indian IT Firms; Wipro, Infosys Aim Europe
Indian IT firms are now looking to focus their operations on Europe as the region looks forward to being familiar with outsourcing.
Big IT providers of India, including TCS, Infosys, have reportedly made acquisitions or won some large deals in Europe in the last few months.
Read on to find out all the details!
IT Companies In India All Set To Tap Europian Market As Region Looks to Outsource
Europe is a market which has not opted for outsourcing as a tradition, but now, the region seems to be warming up to the idea. This is obviously a great news and a huge opportunity for Indian IT companies to tap the market.
Tata Consultancy Services (TCS), Infosys, and Wipro have already made multiple acquisitions and won huge deals in the region in the past few months as the time was impacted by the COVID-19 pandemic and the companies were forced to modify their businesses swiftly.
Analysts have said that these firms will be targetting more acquisitions and bigger deals in the region.
Phil Fersht, CEO, HfS Research said, “Germany is where the recent ‘mega-deals’ have taken place (in Europe) because most large German firms have never outsourced at scale before, and the current market made it appealing for the likes of Infosys, TCS and Wipro to secure a foothold in the lucrative German market.”
TCS Has Increased Interest In Europe; Will Make Some More Acquisitions
Analysts have also said that TCS already has an increased interest in Europe and will probably be making some more acquisitions in the region. The company’s chief, NG Subramaniam has stated that the region is growing at more than 20% year-on-year for the company.
Subramaniam said, “It (Europe) is a growth market. In all the places where there is a constraint in quickly getting visas… (both in case of Postbank Systems and Pramerica) we now have access to about 2,500 people who are highly talented with the latest skill sets whom we can quickly deploy.”
November saw TCS acquire Postbank Systems AG from Deutsche Bank in a deal that also involved the takeover of 1500 employees that were based out of Germany. TCS has also acquired the IT assets of Pramerica Systems Ireland from insurance firm Prudential Financial Plc in the same month.