IT big caps are back on the acquisition route to increase footprint and talents.
India’s top IT service providers have stepped up their acquisition efforts after a subdued two-year period. As per data from Tracxn, major players such as Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, and Tech Mahindra have completed seven acquisitions in 2025, compared to five in 2024 and only two in 2023.
Among the notable deals are TCS’ purchase of ListEngage for $72.8 million, and three acquisitions by Infosys — a 75% stake in Verset for $153 million, the acquisition of The Missing Link for $98 million, and MRE Consulting for $36 million. HCLTech also acquired Nuance for $15.6 million, while the biggest deal of the year so far is Wipro’s $375 million purchase of Harman’s Digital Transformation Solutions (DTS) business.
Industry analysts say most of these buyouts focus on building capabilities in fast-growing areas such as artificial intelligence, software products, engineering services, and geographic expansion. Engineering-related acquisitions, in particular, have gained momentum over the past two years. Examples include Infosys’ 2024 acquisitions of in-tech (automotive engineering) and InSemi (semiconductor engineering), Wipro’s 2025 acquisition of Harman’s DTS unit, and HCLTech’s 2023 takeover of ASAP Group.
“Engineering was one domain where companies needed stronger capabilities, so we’ve seen multiple acquisitions there. It’s clearly a growing market,” said Pareekh Jain, founder and CEO of EIIR Trend. He added that firms pursue acquisitions either to boost their expertise or to strengthen their presence in new markets.
Yugal Joshi, partner at Everest Group, observed that current macroeconomic conditions make asset acquisitions more attractive and financially feasible.
Despite the recent uptick, the acquisition count still lags far behind the levels seen during the pandemic years. In 2021 and 2020, the five major IT firms collectively acquired 17 and 16 companies respectively. Tech Mahindra, Wipro, and HCLTech were especially active then — Tech Mahindra alone completed 11 buyouts in 2021, while Wipro and HCLTech made four acquisitions each in 2021 and 2022.
Analysts highlight a shift in strategy as large Indian IT firms now prefer smaller, capability-focused “tuck-in” acquisitions, especially in engineering research and development (ER&D). “Large caps are increasingly picking up ER&D players,” said Karan Uppal, Vice President and Lead Analyst for IT Services at Phillip Capital.
These smaller deals also help companies gain both competencies and established client relationships. For example, in-tech — acquired by Infosys — already provided services to major German automakers including Daimler.
However, experts believe Indian IT firms are unlikely to pursue long-term bets such as quantum computing. “I don’t think Indian providers have the appetite for such long-gestation investments. They prefer deals that deliver immediate results,” Joshi added.
