Mid-tier information technology companies are increasingly turning to mergers and acquisitions to sustain growth, as organic expansion becomes more difficult in a slowing market.
The shift marks a strategic pivot for firms that previously relied on steady domestic demand and incremental project wins.
Persistent Systems has proposed a takeover of Nagarro, while Coforge has recently completed its own acquisition.
These moves signal a broader industry trend where mid-cap players are leveraging buyouts to scale rapidly and secure larger transformation deals.
By acquiring established competitors or complementary service providers, these firms aim to broaden their client bases and enhance their service offerings without waiting for organic growth to catch up.
This strategy contrasts with the approach of global technology leaders, who have recently favored strategic minority investments to access emerging innovations.