
Buying Kanbay a clever move, say analysts
By Tim Ferguson
Published: 27 October 2006 15:10 GMT
Capgemini is buying IT services company Kanbay International, boosting its Indian presence.
The deal values Kanbay at $1.25bn, and the addition of Kanbay's India-based staff will bring Capgemini's total headcount to 12,000 in the sub-continent by the end of 2006 - an 89 per cent increase on the last quarter.
The total staff employed by the expanded company will be around 72,000.
Capgemini CEO Paul Hermelin said the acquisition supports the company's growth strategy and "significantly enhances" its banking, financial services and insurance practice particularly in India and North America.
In a research note, Ovum analysts Douglas Hayward and Dominique Raviart said the deal is a "clever move".
The note said: "Capgemini becomes a significant player in India and pulls well ahead of its European peers in offshore provision."
It added: "Kanbay shows that Cap understands that with Indian labour costs rising, as talented staff become harder to find, offshore is no magic bullet, and that suppliers combining onshore/offshore models need client-focused vertical specialism offshore as much as onshore."
OTE and Corporate Benefits COMPANY INFORMATION - $2BN T/O - 54000 employees - Established 1975 - Floated 1991 on the Nasdaq - Compete with large ...
COMPANY INFORMATION - $2BN T/O - 54000 employees - Est 1975 - Floated 1991 on the Nasdaq - Compete with large offshore players - offices in 20 ...
A member of the NASDAQ-100 Index and S&P 500 Index, is a Forbes Global 2000 company and a member of the Fortune 1000 and is ranked the top ...
Agenda Setters 2009
Welcome to the ninth annual Agenda Setters poll – silicon.com's list of the top 50 most influential individuals in the technology and IT industries, from techies and CIOs to entrepreneurs and business leaders. Find out more in our latest special report.
Stories from the web...
Copyright © 2008 CBS Interactive Limited. All rights reserved. Top of page
William Benn Future-proof your outsourcing: Stay flexible Size demands can fluctuate, scalability is key to success
Saritha Rai Why are Indian outsourcing companies such bashful suitors? No mega-mergers despite billions on hand