UBS India: IT firms to seek M&A for AI skills
Indian IT companies are gearing up for more mergers and acquisitions to sharpen their AI skills, according to UBS India.
As AI projects shift from small pilot runs to full-scale rollouts, even old-school firms that usually avoid buying other companies are jumping in.
Aditya Chandrasekhar, India IT Services & Internet Analyst at UBS India, notes this is all about staying competitive as businesses demand smarter tech.
IT firms eye AI-native startups, datacenters
AI projects are getting trickier and need more support, so IT firms are looking at smaller AI-native startups and data center businesses to fill the gaps.
These deals could help them keep pace with rising demand for AI.
UBS India cautious on IT sector
UBS is still cautious about the broader IT sector because of challenges like higher oil prices, interest-rate concerns, and geopolitical uncertainty.
They're keeping an eye on companies that show strong growth and resilience, focusing on companies and segments where it sees stronger growth opportunities or greater resilience.