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Indian Outsourcing Giants on Acquisition Spree in China

Indian software outsourcing companies are going on an acquisition spree in China, taking advantage of the country’s huge domestic market and the thriving software industry to beef up their presence.

Indian software outsourcing firms have recently acquired “a considerable number” of small and medium-sized Chinese counterparts, swallowing up more than 40 local firms in Shanghai alone, reported China Business News.

Tata Consultancy Services (TCS), India’s largest IT and business process outsourcing provider, launched another global off-shoring center in North China’s port city of Tianjin last month, its fourth such facility in China.

Emerging markets like China make up 20 percent of Tata’s orders, while those from the US have fallen below 50 percent due to the financial crisis, Girija Pande, head of TCS Asia Pacific, told China Business News.

Pande predicted an annual growth of 45-50 percent in the Asia Pacific region.

Wipro, another major Indian outsourcing player, expected a 10 percent turnover from Asia Pacific, said Rajiv Shah, vice president of the company.

China’s supportive policies on the outsourcing industry, its geographic advantage, talent pool and infrastructure appeal to Indian firms. And the financial crisis has also driven some Indian companies to emerging markets like China to spread risks, according to Pande.