iGate-Patni Deal May Trigger Consolidation Wave: Analysts
The much-touted iGate-Patni deal has finally seen light of day. Will the deal spur a wave of consolidation in Indian IT services firm? Will both entities face integration challenges?
January 12, 2011 / 10:10 IST
The much-touted iGate-Patni deal has finally seen light of day. Will the deal spur a wave of consolidation in Indian IT services firm? Will both entities face integration challenges? Was the deal in line with industry expectations. VCCircle picked some thoughts of industry leaders on how they assess the deal. Excerpts:-
The deal will spark off consolidation of mid-sized players Abhijit Ranade, Associate Director, PwC: In the next 12-24 months, we will see more discussions, action happening. We will see more small and medium enterprises talking to each other, PEs pulling them together. In a commotidised market, scale becomes of prime importance. Pradeep Udhas, Executive Director and Head of IT/ITeS Sector, KPMG: I think consolidations will happen only in 2012. This year, people will observe and see how the Patni merger goes, when they make a success out of it. Resistance to consolidations will break next year. Without consolidation, any two IT generic services players in the industry would fizzle out in face of competition from the big five - TCS, Wipro, Infosys, Cognizant and IBM who are in the $4 billion range, followed by Satyam and Tech Mahindra in the $2 billion range and L&T.Ramchandra Naik
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