IT engineering companies are on an acquisition drive to solidify their foothold in the BFSI sector. Notable acquisitions include Intelliswift for $110 million and asset purchase from SoHo Dragon by Persistent Systems. Furthermore, EPAM Systems’ acquisition of First Derivative and various other mergers underscore the sector’s vitality as BFSI engineering experiences a resurgence, aided by advancements in AI and digital engineering. Leaders in the industry are optimistic about growth, indicating a strategic shift to bolster capabilities in this critical market.
IT engineering firms are increasingly engaging in acquisitions to strengthen their presence in the banking, financial services, and insurance (BFSI) sector. Recently, Intelliswift was acquired for $110 million, with plans to double its revenue, which currently stands at $100 million. This acquisition aligns with the trend wherein half of Intelliswift’s income stems from high-tech avenues, while fintech and retail also form crucial revenue channels. Moreover, Persistent Systems made a significant move by acquiring certain assets from SoHo Dragon, positioning itself strategically within the BFSI domain. In another notable transaction, EPAM Systems acquired First Derivative, a managed services firm focused on capital markets, thereby enhancing its client base and global reach. The BFSI sector is witnessing a resurgence in IT spending fueled by artificial intelligence advancements, prompting companies like Grid Dynamics and Globant to expand their BFSI capabilities through similar acquisitions. Pareekh Jain, the chief executive of engineering insight platform EIIRTrend, remarked on this trend, indicating a positive growth trajectory in BFSI engineering observed in recent quarters. He emphasizes that acquisitions are pivotal as service providers seek to expand their engineering capabilities within this vital sector. With GenAI continuing to garner considerable attention, the expectation of increased discretionary spending is projected to further stimulate growth in BFSI.
The IT engineering sector is undergoing a transformation as companies pursue acquisitions to enhance their service offerings, especially in the BFSI domain. Financial technology is becoming an increasingly competitive arena, with firms historically focusing on efficiency and service resiliency now pivoting to innovations in AI and digital platforms. Key developments, particularly in the context of recent acquisitions, underline a broader trend toward strategic consolidations within IT engineering to better meet the evolving needs of the BFSI sector.
In conclusion, the aggressive acquisition strategies adopted by IT engineering companies signal a robust approach to expanding their capabilities in the BFSI sector. The recent acquisitions, highlighted by Intelliswift, Persistent Systems, and EPAM Systems, demonstrate a broader trend where digital engineering and advancements in AI are set to reshape service offerings, ultimately fostering growth and innovation in financial services. As the landscape evolves, it is clear that these initiatives will play a crucial role in enhancing service delivery and meeting customer demands.
Original Source: m.economictimes.com
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