India's largest IT services firm Tata Consultancy Services (TCS) is "hungry" for acquisitions and is scouting for assets that can bring in intellectual property and widen market reach to further accelerate growth. Speaking to PTI, Chief Operating Officer N Ganapathy Subramaniam said TCS had acquired two entities -- W12 and BridgePoint Group -- last year and both of them have been integrated well with the Mumbai-based firm. "We continue to remain open and hungry for acquisitions. We have one of the best track records in terms of acquiring companies and integrating them... the approach is that clearly, we are in the market looking for the right asset which will add certain amount of IP (intellectual property), market reach or client addition," he said.
TCS, which had acquired French SAP service provider acquire Alti SA for 75 million euros (about Rs 533 crore) in 2013, has been focussing on organic growth even as its global and domestic rivals went on an acquisition spree.
Infosys acquired consumer insights agency WongDoody for USD 75 million last year. Wipro's investment in the digital space includes entities like Designit and Cooper.
TCS, in November last year, announced the acquisition of W12 Studios (for an undisclosed amount). A digital design studio based in London, the acquisition of W12 was part of TCS' efforts to bolster its digital and creative design capabilities. In the same month, TCS acquired the business of BridgePoint Group, LLC, a US management consulting firm (for an undisclosed sum).
Asked about the opportunities in the market, Subramaniam said there are options, especially among startups.
"Some of the startups are doing very well, blockchain is an area where lot of firms have come up. There are many who are working on future of financial services, future of cash, future of payments... so we continue to watch closely some of those technologies and startup firms, how their business models are emerging," he said. Subramaniam asserted that if TCS found the right framework, it "will not hesitate" to make an offer.
"It has to make sense in terms of both value and the combined value of TCS and the asset that we are acquiring should really be great," he added.
The Mumbai-based company, which reported a 17.7 percent growth in profits at Rs 8,162 crore and 18.5 per cent rise in March 2019 quarter revenues to Rs 38,010 crore, continues to remain bullish about growth this fiscal.
TCS CEO Rajesh Gopinathan on Friday described the fiscal as "picture perfect year" and stated that despite macro uncertainties ahead, strong exit (from FY19 positions the company very well for the new fiscal.