Size matters when it comes to Indian IT services companies.
Sales and profits of both smaller tier two Indian IT players — those with less than $500 million in annual revenue — and tier one giants like Tata Consultancy Services (TCS) and Wipro — are both way up over the past 18 months. But, the valuations of tier two companies were off sharply compared to the big guys, according to new research from Martin Wolf M&A Advisors, a company that consults with tech companies about their merger and acquisition options.
For the period from January 1, 2011 till August 1, 2012, the valuation for the big Indian IT providers fell 15.6 percent compared to a 24.9 percent fall-off in valuations for the tier two companies, according to the MW IT Index India Edition which looks at 36 Indian IT service providers — which make money implementing technology for businesses —…
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