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Infosys to buy Capgemini?
"It's what the industry has been waiting for"...

By Tim Ferguson

Published: Friday 29 June 2007

Infosys is reported to be considering a move to buy French tech consultancy Capgemini.

Capgemini's shares rose yesterday as rumours circulated suggesting the Indian offshore tech giant was considering a move for the company.

Mark Kobayashi-Hillary, director of the National Outsourcing Association, told silicon.com such a move would be long overdue.

He said: "It's about time this happened.

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"I know several of the Indian majors have run a slide rule over European IT companies in the past but have always shied away. However, this shows Infosys is maturing and indicating that it wants to behave as a true global services company."

Kobayashi-Hillary added: "Expect more mergers-and-acquisition activity in this sector over the next year or two."

Phil Morris, CEO of consultancy Morgan Chambers, said: "I think Capgemini is a great target. The whole of the industry has been waiting for a play like this.

"I think it's going to change the game completely. Something from the east buying a European player is a quite a turn about."

But Morris added integration issues could prove a potential barrier to any deal.

Both Infosys and Capgemini refused to comment on speculation.