AI impact on revenue triggers M&A frenzy in Indian IT
India's nearly $300 billion tech services industry is on a mergers and acquisitions spree as companies brace for a 2% to 4% revenue dip from the rise of AI.
Infosys just dropped $560 million to buy Optimum Healthcare IT and Stratus; the Optimum transaction is focused on healthcare and life sciences.
TCS spent $700 million on Coastal Cloud for Salesforce consulting, while Coforge picked up Encora for $2.35 billion to strengthen its digital offerings.
Analysts say it is smart timing
Analysts say it is smart timing: Infosys snagged Optimum at a 1.5-to-1 price-to-sales ratio, which is considered a good deal as AI makes acquisitions pricier.
With AI shaking up how tech firms make money, these companies are buying specialized skills and new revenue streams to stay ahead in the game.