The Indian tech industry is headed to a big shakeout with a couple of major mergers and acquisitions expected in 18-36 months. It could mean tier 2, 3, 4 or 5 firms exploring merger with peer or giving in to M&A invitations from external player.
Thus the leader board of Indian IT may look different in the near future as the next couple of years will flesh out a new set of league players in the business, say global analysts who track the space.
Few M&As are likely as domestic tech players are constantly forced to evaluate the size and scale needed to compete in new markets and in new technologies. The dual forces of industry consolidation and new emerging digital market will end status quo and remake the industry. Thus, the entire pecking order of IT Indian may change, they say.
According to Peter Bendor-Samuel, CEO of US-based Everest Group, clear signs of consolidation are discernible in the global markets. The latest example of it is Atos acquisition of Syntel.