Wipro, the Indian tech firm, said that the acquisition would catapult one of the most extensive international consulting, technology, and transformation service providers to the BFSI (banking and financial service industry).
On Thursday, IT major Wipro said it would buy private British Consultancy firm Capco for 1.45 billion US dollars.
The Capco acquisition should see Wipro gaining access to 30 new large BFSI clients.
Thierry Delaporte, CEO, and MD of Wipro, told financial institutions were investing in technology now more than ever.
“They are connecting with clients, improve employees’ experience, and create new revenue flows.You need to think about strategies, transformation with CXO’s and execute them to make them win. So, this acquisition of Capco is strategic and comes at the right time”, said Delaporte.
Capco is London-based banking and financial institution across The America, Europe, and Asia-Pacific regions.
According to Lance Lavy, CEO of Capco, the market is more robust partly due to Covid-19.
He said, “financial institutions have been putting technology to use faster than ever, and we expect the demand to continue for some time. More clients are looking for a single service provider.”
The books of Wipro had Rs 45234 crore worth of cash at the end of December 2020.
Thierry observed that Capco’s expertise would enable developing capabilities and technologies for the firm.”
He added that Scale matters, and the ability to address multiple stakeholders is critical.
D D Mishra, Senior Director Analyst, Gartner, thinks Wipro’s acquisition of Capco complements its consulting organizations. He said, “The total number of deals coming from traditional RFP routes is declining, IT service providers need to engage early with customers across various verticles to support their journey.
Often, clients don’t know what they want; consulting capabilities provide them a deep-dive into this unknown territory and enable efficient decision-making.”