Businessweek Archives

Capgemini doubles down in India


?? 1 + 1 = a killer biz model |

Main

| Cisco's new headquarters: Bangalore ??

October 26, 2006

Capgemini doubles down in India

Steve Hamm

Capgemini's $1.25 billion acquisition of Chicago-based (but Indian-centered) Kanbay is the next step in a massive move by the large Western tech services outfits to India. With this act Capgemini doubles its Indian workforce to 12,000 in one swoop. This seems like a very smark acquisition. Kanbay is a $400 million-a-year company with a roster of large clients, deep experience in the financial services industry, and CMM Level 5 certification for its software management processes.

The move also reinforces Paris-based Capgemini's position in the North American market. Since Kanbay has a strong presence in the United States already as well as in India, this will pose less of an integration challenge than if Capgemini bought an Indian-headquartered company.

One other plus, according to Salil Parekh, CEO of the company?? North America business unit: "We will learn from them how to scale and expand offshore, and then roll the learning out across the rest of Capgemini." That's nice humility.

Something to think about: The $1.25 billion price is approximately what Lenovo paid last year for the $13 billion-a-year IBM PC Co. That shows dramatically the difference in value between a rising asset and a fading one.

06:13 PM

Off-shoring

TrackBack URL for this entry:

http://blogs.businessweek.com/mt/mt-tb.cgi/


Too Cool for Crisis Management
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus