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Indian IT companies are acquiring customers’ technology units to secure larger service contracts and expand their teams. The deals also bring specialist skills, renewing debate over whether these purchases add expertise or mainly increase capacity.
The buying activity comes amid slower growth from existing businesses and changing technology budgets. Artificial intelligence is reshaping demand, while providers seek contracts that commit customers to several years of spending. The transactions span automotive, agriculture, banking and telecom services across international markets.
Tata Consultancy Services plans to acquire Porsche’s consulting and technology subsidiary, MHP, for about $373 million. The accompanying five-year partnership totals €1.25 billion, roughly $1.46 billion.
MHP recorded about $865 million in revenue in 2025. TCS says the company brings automotive consulting, manufacturing technology and AI expertise. It plans an AI centre to support Porsche’s engineering, production, operations and customer experience. TCS still needs regulatory approval to complete the proposed transaction.
MHP employs around 4,500 people worldwide. Its work also spans aerospace, defence, energy and the public sector. The consultancy offers cybersecurity and supply chain services alongside its automotive operations.
However, Peter Bendor-Samuel, founder and chairman of Everest Group, questioned the benefits beyond the existing customer relationship.
He said, “It is unclear how much TCS will benefit from this partnership outside of Porsche.” Bendor-Samuel linked Porsche’s restructuring to competition from Chinese manufacturers and higher US tariffs.
Meanwhile, Wipro completed its $375 million acquisition of Mindsprint, Olam Group’s digital services business, on May 15, 2026. Olam said the sale formed part of a wider plan to focus on its core businesses.
The purchase accompanies an eight-year engagement that Wipro expects to exceed $1 billion. Olam has committed $800 million in spending. Mindsprint employs more than 3,200 people and provides technology for farming, procurement, supply chains and commodity trading.
HCLTech also purchased assets from Hewlett Packard Enterprise’s Communications Technology Group for $225 million. It completed that transaction in December 2024. The deal added technology rights and customer relationships to its telecom business.
The original agreement covered roughly 1,500 employees with telecom experience. These teams operated in countries including Spain, Italy, India, Japan and China.
Earlier, Infosys bought Danske Bank’s 1,400-person Indian IT centre alongside a $454 million contract. It completed the acquisition in September 2023. The bank partnership covers changes to its technology systems, including greater use of cloud services and AI.
The approach follows earlier purchases of captive centres, which serve their parent companies. Ramkumar Ramamoorthy, a partner at Catalincs, said recent transactions could precede further sales of such units.
He cited Porsche, Guardian Life, Olam and Telstra among the examples. According to Ramamoorthy, parents may sell technology centres when they no longer view them as core assets.
In 2008, TCS announced an agreement to acquire Citigroup’s Indian outsourcing unit for $505 million, subject to closing adjustments. The arrangement included a $2.5 billion services contract over 9.5 years.
Cognizant followed with an agreement to acquire UBS India Service Centre in Hyderabad in 2009.
Pricing also separates specialist acquisitions from purchases of internal technology units. Businesses with cloud, data and AI skills can command three to four times annual revenue, according to reports. Purchases of captive units often carry revenue multiples below half those levels.
These multiples compare acquisition prices with annual sales. They do not measure the value of the accompanying service contracts.
