There is a lot of M&A talk in the IT Services business, so i thought to put in a set of posts to cover the topics. First lets start with Wipro's thoughts on the topic:

"We are looking at acquisitions, you know in several of the verticals where we have seen there is a gap between what we can offer our customers to complete our solution offering and rather than look at smaller acquisitions, because we are comfortable with them. We are now saying the bar is higher. We are more comfortably indicating even $100 or $200 Mn companies. So we should look at that. So this year the strategic areas of you know, say a retail vertical or manufacturing verticals, whichever verticals we have identified as key verticals or key service lines, we are looking at bigger pieces there. That is one. The second piece is that, we had earlier constrained ourselves by saying that we would only go for single vertical or single service line kind of acquisitions. We are now saying that having done several acquisitions over the last 12 months, our competence and our comfort is greater and so we can now do even multi-vertical acquisitions. That is secondary. That immediately raises the size of acquisitions you can look at. And the third area is that we have been more hesitant in doing acquisitions, which we were very high end because we were not comfortable that we will be able to get the full value in the right manner. We are now comfortable with the Enabler acquisitions that even if we have high end consulting capability in a particular vertical, we can combine that consulting and domain knowledge with the global delivery and technical competence and really make a difference to our customers. So that has given us greater confidence and the three areas put together, we are really looking at something number which are in the order of kind of bigger in the order of acquisitions. It is not really a geography we are targeting. So I cannot say that we are looking at US or Europe per se. It could be anywhere, wherever the strategic needs gets fulfilled. But suffice to say, that we are looking at vertical scale type acquisitions, industry domain type acquisition, as well as service line acquisitions."

Comment from Sudip Nandy during their last earnings call,

Source: 1

Prashanth Rai