CSC takes over Covansys for $1.3b to ramp up its Indian operation

Interesting week for M&A. Week started with Merger of Barclays and ABN Amro and ending with the CSC acquisition of Covansys.looks like it’s the season of mergers and acquisitions. Day in day out the bigger IT companies are picking up small and growing companies and ramping up their operations in India..Last year EDS had acquired majority stake in Mphasis and added some 11,000 India-based employees to their total head count. In February, 06, Capgemini sealed a $1.25-billion deal for Kanbay, adding about 6,000 India staffers. And now it’s CSC taking over Covansys. Is there anyone who can predict this fast growing M&A trend? One clear trend is that western IT services providers are increasingly aggressive about using M&A activity as a way to grow their resource bases in India, as intense competition in the country's labor market makes it increasingly difficult to recruit the right quantity and skills. In the last three years, CSC, EDS, Capgemini, IBM, Perot Systems, have all executed takeovers designed to boost offshore numbers, and more will follow.
Can we really see a merger of Oracle and SAP or Google and Microsoft in future? Well you never know bcoz IT industry is really unpredictable. Any Comments??

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