Leading Indian outsourcing company Wipro is pushing into the US market with the $600m (£295m) acquisition of Nasdaq-listed Infocrossing.
Infocrossing provides outsourcing services to mid-sized companies in the US and last year generated revenues of more than $230m (£113.5m).
The deal is the biggest by an Indian IT firm and comes after Wipro increased its profits last quarter by 16 per cent to £86m.
The acquisition will help Wipro become more appealing to Western companies involved in off-shoring to India, says global IT services president Suresh Vaswani.
‘Through Infocrossing we are deepening our presence in the United States,’ he said.
Wipro has also identified global infrastructure services as an important driver of growth, said Vaswani.
‘Outsourcing , which include IT infrastructure services, grew 75 per cent in the past year proving clients are increasingly realising the value,’ he said.
The global IT infrastructure market has been valued at $150bn (£74bn) and the market opportunity for remote management services is predicted to reach $70bn (£34.5bn), according to Indian industry association Nasscom.
The deal is expected to be completed in December.
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