Image: Mansi Thapliyal / Reuters
India’s it services providers are stepping up acquisitions overseas given the demand for digital solutions and localisation. For instance, HCL Technologies—India’s third biggest IT company by revenue—has agreed to acquire DWS in Australia for A$158.2 million and is expected to close the deal by December. The company has over 700 employees and offices in Melbourne, Sydney, Adelaide, Brisbane and Canberra. DWS delivers business and technology services to large clients across multiple verticals.
DWS will enhance HCL’s contribution to digital initiatives in Australia and New Zealand, and strengthen its client portfolio in key industries, says Swapan Johri, corporate vice president, APAC, Middle East and India.
HCL started offering its services in Australia 20 years ago, starting with Sydney. Today it employs 1,600 people Down Under. DWS’s acquisition will help the Indian IT services provider further strengthen its Australia-centric digital capabilities and add new relationships, adds Johri.
“Australia is an important market for most providers in the Asia Pacific region. This arrangement is expected to boost HCL’s digital transformation capabilities in the region,” explains DD Mishra, senior research director at consultancy Gartner. “The acquisition will also help HCL’s localisation efforts in multiple Australian cities.”
The Covid outbreak has resulted in the acceleration of investment in digital technologies across businesses. Infosys recently acquired Kaleidoscope Innovation, a US product design and development specialist. “DWS will give HCL Tech a foot in the door to cross-sell or upsell its products and services. HCL also has an opportunity to undertake consulting-led engagements in Australia,” says Mishra.