Among countries, the majority of these new information technology “mega-deals”, the report said, took place in Germany.
The European market, usually kept away from outsourcing, has become a new market for Indian information technology companies amid the coronavirus pandemic.
Big Indian IT companies such as Wipro, Tata Consultancy Services (TCS) and Infosys have won large deals or acquired units in the region as local businesses looked to “quickly transform” to adjust to the pandemic situation, The Economic Times reported.
Among countries, the majority of these new “mega-deals”, the report said, took place in Germany – this is in large part because companies in the country have never outsourced to this extent before and the current situation has made it “lucrative to gain a foothold in the German market” for Indian IT companies, HfS Research CEO Phil Fersht said.
Analysts in general told the paper that similar deals and acquisitions are likely to continue and there may be bigger moves in the region.
Moneycontrol could not independently verify this report.
NG Subramaniam, COO of TCS called the region a “growth market” and noted that it “continues to grow at over 20 percent year-on-year” for the company.
Analysts point out the likelihood of “more acquisitions in the region” to improve “local resource strength.” TCS bought Postbank Systems AG from Deutsche Bank and Pramerica Systems Ireland from Prudential Finance Plc – both in November 2020.
