The information technology sector in India appears to bolster its way into the business processing world by making robust expansion of service capabilities. Certainly, the focus is on consolidation, which is allowing smaller parties to join the feast. Over the past couple of years, India has witnessed an overwhelming growth of its IT sector. This growth has been hailed by many including industry associates from several parts of the world.
Going by the current pace of growth, acquisitions and merger are ideal for players to sustain in the market. For that matter, the healthcare IT continues to be a lucrative space for most market participants, which is being crucially realised by IT companies in the country. As recent as last month, Tech Mahindra announced the acquisition of Florida-based CJS Solutions Group LLC trading as The HCI Group. The move indicates the growing interest of Indian IT firms in strengthening their healthcare IT service portfolio. Going forward with the deal, Tech Mahindra is expected to reap long-term benefits, as CJS will boost the Mumbai-based IT giant’s resource strength. The HCI Group has massive service portfolio that includes IT system implementation, go-live, training, clinical adoption, enterprise-wide advisory solutions, cyber security and optimisation. Tech Mahindra Ltd, reportedly witnessed an impressive quarterly growth last year and plans to expand its service offerings, especially in the healthcare IT space.
Correspondingly, other market contenders such as HCL Technologies Ltd, Infosys Limited, Tata Consultancy Services Limited and Wipro Limited are also likely to implement such M&A strategies in the forthcoming years. Incidentally, WNS Global appears to have taken the centre stage in this regard as the company recently agreed to acquire US-healthcare Company HealthHelp for around $95 Million. The business process outsourcing firm plans to boost its offerings for healthcare and insurance industry with this addition. This acquisition will bring WNS approximately 400 medical and operational professionals of HealthHelp. Moreover, the newly acquired will allow WNS to augment its medical capabilities in the fields of Cardiology, Sleep Care, Pain Management, Radiology, Oncology, and Orthopedics.
HealthHelp is excited to announce its acquisition by WNS: https://t.co/bx7G5PClbs
— HealthHelp (@HealthHelp) March 15, 2017
It is the second major acquisition that the company made this year after acquiring Denali a procurement BPO for $40 Million in the month of January. With these acquisitions, WNS dives deeper into Insurance BPM and end-to-end Healthcare IT space. The company will certainly leverage HealthHelp’s expertise in care management to address the needs of clients.
Competition in the IT service space has grown stiffer off late, especially in the healthcare vertical. Leading companies are implementing M&A strategies to withstand the growing pressure as well as to tap into new business verticals. Therefore, consolidations are likely to place companies in a better position to deliver quality services. Moreover, mergers and acquisitions also make a strong impact on a company’s stock valuation and help attract more investors.