Japanese IT's looking at Indian acquisitions?

India is increasingly becoming a hotspot for Japanese IT companies, where they are showing keen interest to acquire Indian IT’s, sources reported. 3 Japanese IT’s bid for Patni Computers though eventually they shelved the plan.

But some acquisitions have been successful too where NTT Data acquired IT services firms Keane International and Intelligroup both of which are based in US, but these companies have three fourths of their employees based in India, sources noted.

Research analysts believe that in the coming year, such acquisitions may become more aggressive from Japanese firms. The Japanese IT market is world’s 2nd largest after the US and it is valued at $108 billion.

Japanese firms are beginning to look beyond their cultural counterparts for investment as they are facing a problem of high maintenance cost, low flexibility and non-availability of legacy skills, sources informed.

In addition their absence in major countries like Europe and US put them at a disadvantage; now they have realized the shortcoming and are looking to explore the exclusive clientele India has, by acquisitions of its IT firms.