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November 13, 2012
Chinese IT Companies on the Rise
How IT Services' Next Chapter Will Play Out in India and China 
 

Our analysis of the roles that Indian and Chinese companies will play in the evolution of the global IT Services industry was highlighted in a blog post by Marty Wolf that was published last week in VCCircle, a leading investment publication based in Mumbai.

 

In our view, IT Services will segment generally into two categories: cost-sensitive outsourcing services and higher value, strategic services. Indian companies have historically had the advantage of better, less expensive, faster services than most of the world. This triple threat catapulted India's IT Services industry into the global leader.

 

But between now and 2015, the Chinese government is actively investing more than $150 billion in 25 cloud computing centers by 2015 to shore up China's relatively immature cloud computing infrastructure.

 

Does this mean that Chinese companies are overtaking Indian companies?  In a word, "no."

 

But, it does indicate that some more mundane or rote, cost-sensitive services might migrate to Chinese companies. Why? It's simple: they are now the ones offering low-cost services.

   

Indian IT Services companies are well trusted by their clients. This is a huge market advantage if Indian IT companies can move quickly up the value chain and achieve global scale before Chinese companies.

 

In the meantime, if Indian IT companies do nothing they risk continuing to experience declines in enterprise value despite increasing revenues. 

 

Higher value services is one aspect of achieving higher valuations for India's IT industry. Now is the time for it to move on to the next chapter - delivering compelling financial returns.

 

To read the entire blog post, click here.


To learn more about martinwolf contact Matthew Putzulu at mputzulu@martinwolf.com.  

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 IT services-based business models. Since 1997, our team has completed more than 115 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 www.martinwolf.com.

   

November 6, 2012

Rolta, through its subsidiary Rolta International, Inc. announced that it acquired AdvizeX Technologies, LLC, a US company providing a comprehensive set of IT products and services ranging from roadmap planning to cloud-computing implementation strategy. With the acquisition, Rolta is now one of the top national partners of Oracle, Microsoft, HP, EMC and VMware in the US. Rolta was represented by martinwolf in the transaction. 

Please click here to view the announcement.

 

June 15, 2012

glendonTodd Capital LLC announced that it acquired Aztec Systems, a leading provider of enterprise technology solutions to hundreds of U.S. middle-market companies. Aztec was represented by martinwolf in this transaction. Aztec, a member of Microsoft's Presidents Club, was recently ranked 27th in revenue on Bob Scott's 2012 Top 100 VARS list and serves more than 700 middle-market clients. Terms of the transaction were not disclosed. Please click here to view the announcement.

 

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. 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.   

 

 

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________________  

 

If IT companies move quickly 

up the value chain and achieve global scale, before China has the chance, they 

can weather 

the storm.

 

- Marty Wolf

 

 

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