Infosys exploring prospects for new acquisitions in Europe
Infosys Technologies, India’s second largest IT and BPO service provider in terms of revenues, has announced that it is exploring prospects for new acquisitions in Europe. At the same time, the leading IT firm has pointed out that compared to the European technology companies; it is better positioned to expand operations in Europe by virtue of its right to use the vast talent resources back in India.
Quoting B. G. Srinivas, Infosys Technologies senior vice-president for marketing, product lifecycle, and product engineering and engineering solutions, a business website reports that the firm is considering acquiring small IT/ BPO companies in definite segments. Elaborating, Srinivas said that they were eyeing to acquire tech firms worth in the range of $100 million to $300 million in the UK, Germany and France.
Infosys Technologies plans to acquire verticals or in the field of platform and IP in the United Kingdom, while its looks for making further inroads in France and Germany and also acquire firms in the space of package implementation as well as consulting in these two European nations. Srinivas further said that they have an edge over the European players, as when the markets in France and Germany begins to mature, Infosys will be well positioned to augment its operations in those countries as it has access to India’s vast faculty resources.
The Infosys senior executive observed that the Europe would eventually witness a talent scarcity since the countries there do not produce sufficient number of faculty, especially technology talents, to meet their business requirements. He further said that the European players usually rely on their associates, but if they were to obtain their own talents, they will surely find it difficult to run their businesses.
Srinivas pointed out that only competitive pricing was not responsible for Infosys Technologies’ success in the European market. Instead, the firm’s aptitude to endow in the European markets, to propel a superior delivery system as well as obtain customer references have all combined to enable the IT major to get winning contracts there. At the same time, the Infosys executive pointed out that the market in the UK was highly established and contributes over 50 per cent of its business outside Europe. Stating that the largest European markets include France and Germany that keep on exploring changing their primacies and stratagem with regard to espousal of outsourcing and offshoring, Srinivas asserted that Infosys Technologies will certainly make new outlays in Europe.