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August 8, 2012

Inaugural MW IT Index® (India Edition) 
Despite Challenges Ahead, Strong Opportunities for Indian IT Services Industry


martinwolf M&A Advisors has published the inaugural MW IT Index® (India Edition), tracking the enterprise value of 36 Indian IT Services and Business Process Outsourcing (BPO) companies traded in the U.S. (NYSE and NASDAQ) and Indian (BSE) stock markets. In addition to the India edition, the firm publishes a U.S. edition and China edition (available on our website). martinwolf began publishing the Index in 2005, and now each version is used both internally and by industry leaders to analyze the state of the international IT industry. All three editions of the Index begin on January 1, 2008, with a value of 1000.


Valuation Declines Starting in 2011


The Indian IT Services industry has become a significant force in the global economy during the past two decades, boosted by India's GDP growth and industry expansion. While India's IT companies remain profitable (spanning from January 1, 2011, through June 30, 2012) Tier 1 company valuations CAGR dropped to -15.6% and Tier 2 company valuations CAGR dropped to -24.9%.


These valuation declines mean different things for each type of company, but the one impact in common is that they have reached the end of relatively easy paths to growth. 


For Tier 1 companies, going forward it will not be enough for them to continue making acquisitions that simply move them up the value chain in general terms or establish a presence in new geographic markets. Instead, they will need to focus on completing very large acquisitions that significantly add to their skill sets, establishing deeper domain experience and developing or acquiring IP of significant value. Tier 1 companies can look to Accenture and IBM as role models for this necessary transformation .


India's Tier 2 IT companies face the increasingly difficult challenge of figuring out how to grow fast enough to stay relevant. Even though they have encountered good P&L performance recently, with India's GDP growth slowing, and industry contracting, it is not translating to increased enterprise value.


Outlook for the Indian IT Services Sector Still Remains Strong


We believe that despite challenges facing the industry, the sector remains well-poised to succeed for the next three to five years driven by the aggressive growth strategies of Indian IT leaders and the strong potential for cross-border M&A growth.


While the outlook is strong, India IT companies can no longer rely on the country's market forces alone to increase value.  As a result, we expect India IT companies to increasingly look to cross-border deals to grow and build enterprise value.


To view the entire report, please click here.  


For more information about our firm, contact Matthew Putzulu at, or see


About martinwolf    


     San Ramon Office          
             San Francisco, CA                                                Bangalore, India

With offices in San Francisco and Bangalore, India, martinwolf is a leading middle market M&A Advisory focused on companies with services-based business models. Since 1997, our team has completed more than 100 transactions in six countries. We are a five-year member of the Merrill Lynch PS Referral Network and were selected as ICICI Bank's (India's leading private bank) exclusive strategic partner for acquiring U.S. IT companies. martinwolf is a member of FINRA and SIPC. For more information, visit


December 1, 2011

Softchoice Corporation (TSX: SO) announced it has it has fulfilled its regulatory requirements under the Competition Act and has now completed the acquisition of substantially all of the assets of UNIS LUMIN, one of Canada's most highly regarded Cisco networking and managed services companies. Softchoice was represented by martinwolf | M&A Advisors. The acquisition strengthens Softchoice's professional services capabilities while providing the technology foundation to support the Company's future cloud offerings.

Please click here to view the announcement.   


September 30, 2011

SPS, a leading Unified Communications Provider, announced that Court Square Partners has made an investment in the company. martinwolf advised SPS in this transaction. SPS is a premier unified communication services integrator, ranked 131 on the 2011 VAR 500 list with 2010 sales of $143 million. Court Square is a $4B+ New York-based PE Group, with more than 150 lifetime investments.  

Please click here to view the announcement. 


September 20, 2011  

Accel-KKR, a technology-focused private equity investment firm, announced that it had taken a majority stake in Infinisource. Infinisource is a leading benefits administration technology and services company. martinwolf advised the seller in this transaction.  

Please click here to



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