International Venturing by Indian IT Firms: A Motive Analysis

Understanding the Dynamics of M&As in Indian IT Sector: An Analysis of the Trends, Patterns, and Directions

“…It has been observed that total number of domestic deals (418) is less than total number of international deals (581) and only in four particular years, domestic deals outweighed international deals. This finding is similar to Saraswathy (2010) and Varma (2009). The reasons for higher number of international deals may be traced to the following factors: (a) USA provides a big market and the companies, which got acquired there, are mostly small players.…”

“…In a different classification, developed countries captured 90 percent of the deals (523 in number) while developing countries had 10 percent of the deals (60). 9 This is similar to the results of Varma (2009) who found the share of developed countries to be 85 percent.…”

“…Finally, there was another stage of overseas deals during the post-2000 period. While analyzing the trends and patterns of Indian CBMAs, Varma (2009) found that North America followed by Europe and other developed countries led the maximum CBMA deals by Indian IT sector.…”

“…The factors contributed to increase in M&A activities in this sector were reforms process in India and globalization, availability of Internet and web-based developments in 1995–1996, entry of foreign players, and diversification of established players due to huge potential for growth (Kar, 2006). Further, the period between 2000 and 2010 witnessed an unprecedented boom in outbound FDI activity, led by overseas acquisitions of firms in the IT and pharmaceutical sectors motivated by the search for markets and strategic assets directed largely at the developed world (Varma, 2009).…”

Role of mergers and acquisitions on corporate performance: emerging perspectives from Indian IT sector

“…The factors contributed to increase in M&A activities in Indian IT sector were the reforms process and globalisation, availability of Internet and web-based developments in 1995-1996, entry of foreign players, and diversification of established players due to huge potential for growth (Kar & Soni, 2018). Further, the period between 2000 and 2010 witnessed an unprecedented boom in outbound FDI activity (Bhasin & Jain, 2015), led by overseas acquisitions of firms in the IT and pharmaceutical sectors motivated by the search for markets and strategic assets directed largely at the developed world (Varma, 2009). Thus, the Indian IT sector provides an interesting setting for enquiry as it moves from export led to FDI led internationalisation (Gaur, Kumar, & Singh, 2014) with M&As as the main mode of entry (Varma, Kar, Soni, & Suder, 2017) where M&As play an important role.…”