Tuesday, June 7, 2005

Wipro on the acquisition trail?

Is it just me or are the moves and counter-moves of US / European consulting firms and their Indian counterparts starting to look like mirror-images of one-another?

Both seem to be positioning themselves so as to have a strong go-to-market presence in the richer developed countries, whilst being able to resource sizeable chunks of the assignments won in operations based in the lesser developed nations. The outsourcing of consulting service provision to cheaper parts of the world if you like.

The likes of Infosys, Tata Consultancy Services and Wipro are all trying to grow their presence in the mature markets of Europe and the US to leverage off their Indian operations. An article on Wipro earlier this year in the Economic Times (see here) claimed Wipro boss Azim Premji had plans to acquire businesses in European markets such as France, Germany and the UK. Whilst in the FT this week there's an article (see here) in which Premji highlights US and Indian acquisitions as being potentially imminent, with European deals still of interest but less well progressed.

The major US and European consultancies, meanwhile, are busy building operations out in the likes of India and China - so the footprints of all look pretty similar.

Consulting is certainly looking like a more and more homogenous service offering. Where's the differentiation in the market?!


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