Advertisement

Help
You are here: Rediff Home » India » Business » Report
Search:  Rediff.com The Web
Advertisement
   Discuss   |      Email   |      Print | Get latest news on your desktop

Acquisition to bring Infy missing verticals: Experts
 
 · My Portfolio  · Live market report  · MF Selector  · Broker tips
Get Business updates:What's this?
Advertisement
August 27, 2008 13:48 IST

Infosys' [Get Quote] plan to acquire UK-based Axon Group plc would significantly enhance the Bangalore- headquartered company's high-end business consulting and global delivery capability and bring missing industry verticals to its fold, said an industry expert.

"The deal clearly marks aspirations of top Indian firms to play a big role on the global IT services scene. They are re-building themselves as their age-old selling proposition based on low-cost, quality, and process superiority gets commoditised," said IT research firm Forrester Research's Senior Analyst Sudin Apte.

"This deal is the first, yet substantial step towards building superior business transformation capability to matchtraditional back office services such as applicationdevelopment and maintenance" he added.

According to Forrester Research estimates, the deal would bring over a hundred new clients and missing industry verticals including the public sector to Infosys' fold. And through a substantial Axon employee base in Europe, Infosys is better equipped to address the much wanted European client demand of a combination of local Europe presence and offshore scale.

"Our research has constantly showed the need of 'on-shorepresence plus offshore scale' as a key imperative for European business. And with Infosys marching towards that,pressure on top Indian as well as European firms, hasincreased", Apte said.

In addition, the deal is neither too small to be inconsequential, nor mammoth in size impossible to manage. Forrester believes that the deal, involving more than 2,000 people and continuation of current Axon management, will not fall apart at least on the ground of high leveraged and client-connected staff leaving.

While Infosys has no experience in managing such a large acquisition and integrating two culturally diverse firms, given the current Axon management which will saty for a period of over two years, there is good possibility of reasonably smooth integration, Apte added.


© Copyright 2008 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 Email  |    Print   |   Get latest news on your desktop

© 2008 Rediff.com India Limited. All Rights Reserved. Disclaimer | Feedback