India’s cash-rich IT firms look to acquire deals for steady revenue flow

India’s cash-rich IT services providers are eyeing deals involving the acquisition of subsidiaries of global companies along with their employees, to ensure a pipeline of large multi-year contracts and steady revenue flow at a time when long-term services contracts are drying up amid the Covid-19 pandemic, analysts said.

India’s largest technology services exporter Tata Consultancy Services recently said it would acquire 100% stake in Deutsche Bank AG’s unit Postbank Systems AG, including its 1,500 employees, to expand its presence in Germany.