India's biggest outsourcing deal - Bowen Preview

Indian outsourcing biggest M & A April 5, 2009

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2009 年 4 月 5 日 \

(Indian IT services companies are seizing the opportunity the market downturn, large-scale acquisition of IT consulting and services companies in Europe and America access to high-end market.)

of: Ji Yongqing

\revenue perspective, we have India's third largest IT services company has. \

December 15 last year, beat another Indian IT services giant Infosys, India HCL Technology Co., Ltd. with 440 million pounds the final all-cash bid for British consulting firm Axon, which is the Indian IT services company's largest deal in history.

Axon first by the German company SAP,zero skateboards, a senior manager in the United Kingdom founded in the SAP software, consulting, implementation and services, has a very strong strength. After completion of the acquisition, Axon Rengran will remain independently operated, HCL Technology Co., Ltd. in charge of SAP services to more than 1,800 Zixunguwen Yekuaijiaru Zhegebumen, making Zhengge SAP Yewutuandui the number of people Da Dao 4500, the first place worldwide, Zhe also a serious threat to the UK Logica, Deloitte & Touche USA, France, Capgemini and other SAP software consulting services company veteran status.

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This is a big business: the industry estimates, the size of the global SAP implementation market, there are 27 billion U.S. dollars of giant, which for the size of outsourcing at least 73 billion dollars. This is a lucrative business: the developed countries in Europe and America before, the implementation of one U.S. dollar per SAP software, users need to pay for consulting services is as high as 5 dollars.

Now, Indians have begun to enter the high-margin consulting services outsourcing, they will not only bring down the level of profits of these businesses will also be eaten after Xiao Rizi has been doing well in Europe and the United States consulting firm order. Compared with European and American counterparts, they obviously also have the ability to deliver low cost. For example, in 4500 HCL Axon company behind the SAP implementation consultants, there are more than 6 million people in the service delivery team located in India, Malaysia and other low-cost regions.

financial crisis has given to outsourcing IT services company based in India dealt a heavy blow, the fourth largest IT services company Satyam's fraudulent financial turmoil is the whole cast a shadow over India's outsourcing industry. At the same time, the financial crisis has also given them a good chance: they can also struggled through the acquisition of European and American counterparts to enter more profitable high-end market. Just last July, HCL BPO outsourcing is also engaged in the acquisition of Liberata UK life companies and insurance businesses. By the British at the door and the whole high-end European IT services market has been open to the HCL, had been living in India's HCL also received second-line with TCS, Infosys and other front-line big brothers equal opportunities. More importantly, these have been door and entering the Indian companies will be collectively, Accenture, Deloitte and other European and American veteran of the consulting services company to launch new challenges.

\Outsourcing the number of suppliers will continue to shrink.

Therefore, in this competition for the future occupy a more favorable position, the acquisition may be a good choice, now is a good time: As the financial crisis, Europe and the United States capital markets in general depression, the When the seller's asking price will not be too high. Last year in October, another Indian IT services company TCS to 505 million U.S. dollars on a \

company through the acquisition of Axon, HCL has India's top four IT services to further the company's footsteps into the Chinese market. HCL Axon General Manager of Greater China, Gu Xuan is a Chinese born in the Mainland, he Axon American jobs, the company acquired by HCL. Axon second half of 2007 the company entered the Chinese market is through the acquisition of a company called JSPC (Jazz telecommunications software) company's SAP software implementation services only to achieve. The foreseeable future China will become an important market for HCL Axon and delivery base.

Today, HCL Axon has been the development of China's aviation maintenance industry has several large customers. He is also preparing to expand to other more customers into the industry, when I heard Lenovo is spending billions of dollars in the global implementation of SAP ERP systems, when Gu Xuan laughing can help Lenovo to effectively implement cost savings. Of course, he also hopes to cooperate with Chinese local companies, work together to develop the Japanese market.

his Chinese counterparts are eager to expand overseas markets. Over the past few years, the soft international, Worksoft,indian curry recipes, iSoftStone, Beyondsoft other leading outsourcing companies have adopted small-scale overseas mergers and acquisitions, in the foreign market foothold. The future, they may also become more frequent use of such means. When more bad situation, and perhaps more need to implement a bold offensive Strategy.