This acquisition gave NIIT Tech footprint in Europe @ Indian IT firms

 MrAnand Mahindra recently tweeted on his way back from Europe. “As I leave Europe I'm struck by how insecure it seems obsessed with Eurozone challenges. In other words, a perfect time to invest in it!” A good number of Indian IT firms have realised this. They have started doing this already by acquiring firms in the global markets, with a focus on the West. These buyouts are not to add just staff numbers, but to acquire high-end skilled workforce. 

Skilled workforce

“You can add hundreds here in India itself. But getting that skilled work force is very important to help move up the value chain. The IT-ITeS industry is seeking to add capabilities inorganically. Sharp increase in outbound mergers and acquisitions last year is a testimony to this trend,” MrRajendra Pawar, Chairman of National Association of Soft ware and Services Companies, told Business Line. A latest Nasscom estimate has put the outbound mergers and acquisitions size at amount $ 1,045 billion market in 2011 from amount $ 489 billion in 2010, showing a 100 per cent jump. NIIT Technologies had acquired the Spanish firm Proyecta and 100 consultants along with it who have domain knowledge in tourism, airlines, financial services and banking. This acquisition gave NIIT Tech footprint in Europe. Ybrant Digital, a digital marketing solutions firm, too is on a shopping spree. It acquired as many as eight firms by spending about $100 million in the last five years. Barring one (LGS Global), all others are global buy-outs. “Acquisitions have helped us change the business model itself. From a back-end support firm, the acquisitions help us become a front-ending firm too. The staff numbers grew to 450 (without LGS that has about 650 employees) from about 110 in 2005 when we are a $10 million firm,” Mr SureshReddy, Chief Executive Officer of Ybrant Digital, he said.