Mergers and Acquisitions (M&A) in IT Outsourcing - "Deals are Back"

11 Mar 2011
by Chirajeet Sengupta, Yugal Joshi



Service providers have leveraged the inorganic growth route for long to serve various strategic objectives. MNC providers have largely used them to either expand into low cost delivery locations or augment their technology business. Offshore providers have focused more on augmenting their consulting and BPO capabilities.

Everest performed a comprehensive analysis on various M&A transactions in the last five years to understand the patterns and trends in terms of which acquisition theme is getting the most valuation from the buyer, geographical trends in acquisitions, acquiring behavior and inclination of MNCs and offshore providers.

Yearly distribution of range of average value of M&A deals 


  • Overview of M&A deals in ITO and BPO segment in the last five years
  • Analysis of M&A deals including
    • Share of different acquisition topics in all M&A transactions
    • Acquisition pattern of MNCs and offshore providers
    • Trends in acquisitions in terms of acquirer and target company geography
    • Distribution of various acquisition themes in all M&A transactions
  • Financial analysis of M&A deals

Last five years’ aggregate M&A deals distribution for MNCs and offshore service providers 


This research focuses on giving an insight into the M&A transactions done by the service providers. The analysis focuses on key acquisition themes, geographic inclination of acquirers, acquisition interest in terms of the service line of target companies, and valuations. The report highlights the acquisition pattern for MNCs and offshore providers as well. For example the second section on acquisition trends analyzes different perspective in an M&A such as

  • Interest of acquirers in terms of focus on specific acquisition topic or theme
  • Analysis of MNC and offshore provider’s M&A transactions
  • Leading geography of interest to acquire a target
  • Geographical analysis of acquirers
  • Deal size distribution in terms of acquisition themes and type of acquirer

Page Count: 45