The major Indian software exporter, Wipro was looking to win customers in Europe and Asia, so it reached an agreement to buy the 22-year-old London-based consultancy Capco at $1.45 billion. In 2018, Wipro’s closest rival, HCL, had acquired IBM’s software products unit for $1.8 billion.
Main Motive of Wipro and Capco Together
Thierry Delaporte said, “Together, we can deliver high-end consulting and technology transformations, and operations offerings to our clients. Wipro and Capco share complementary business models and core guiding values, and I am certain that our new Capco colleagues will be proud to call Wipro home”. Even Lance levy, CEO of Capco stated that when Wipro and Capco will work together, then the global financial business will get boosted to another level. He said, “Together, we will offer bespoke transformational end-to-end solutions, now powered by innovative technology at scale, to create a new leading partner to the financial services industry”.
How the Acquisition Will Help Wipro?
The acquisition of Capco is considered the software company’s biggest acquisition so far. Rishad Premji said, “The acquisition reflects a ‘bolder’ Wipro. BFSI is a high priority for us. Capco will bring the Wipro scale to the BFSI business. The acquisition will expand our presence to large strategic customers and it will help us leverage deep relations with business leaders of large customers.” Thierry Delaporte, the CEO of Wipro said, “This deal is a growth accelerator for Wipro. We have a complementary customer base and it gives immediate access to 30 BFS clients who can enhance access to industry solutions”.
TPT Policy Advocacy & Recommendations
- For the major IT services companies, BFSI is a big spender. Wipro is weak in BFSI. But, the acquisition of Capco is an effort to address this gap.
- Through this huge acquisition, Wipro will get a high chance to chase clients in Europe and Asia.