Indian IT service providers invested $7.1 billion in acquisitions since the beginning of 2025. Spending reached $5 billion in 2025 and $2.1 billion during the first half of 2026. Consultancy UnearthInsight reported these figures as firms combat slowing growth.
Artificial intelligence adoption is driving pricing pressure and weakening organic growth. Companies are purchasing smaller firms to rapidly acquire new clients and expand geographical reach. These deals also provide specialized capabilities in cloud computing and data analytics.
Coforge purchased Encora for $2.35 billion. Tata Consultancy Services acquired Coastal Cloud for $700 million.