Indian IT firms to benefit from Credit Suisse-UBS merger
BENGALURU, INDIA — Indian IT providers are expected to gain new contracts with the Credit Suisse-UBS merger.
According to Phil Fersht, CEO of IT consultancy firm HfS Research, a merger between two major banks like this could be good news for providers with the deepest institutional knowledge of the client — like Cognizant and TCS.
Meanwhile, Mrinai Rai, principal analyst at tech research firm ISG, said large-scale mergers and acquisitions often decrease and enhance service scope for service providers.
Rai expects some rationalization in captive centers operating in India, which could create opportunities for service providers.
However, Everest Group’s Pranati Dave and Kriti Gupta believe that Credit Suisse and UBS to rationalize vendor portfolios and IT estates to realize significant cost synergies.
The pair continued that while Credit Suisse and UBS were known as “huge outsourcing shops,” both banks have also been actively reducing their outsourcing headcount and building capabilities in-house over recent years.
According to anonymous sources, Indian IT giants TCS, Wipro, Infosys, Tech Mahindra, and HCL Tech have around $600 million in contracts with Credit Suisse.
