IT Comanies Slowed Down in Mergers and Acquisitions?

You must be observing the recent slowdown in Information Technology and BPO industry, it's eventually dampening the spirits of IT companies and there has been a slowdown observed in the appetite of IT and BPO companies for large cross-border merger and acquisition deals.

If you look at the data available, you would think over what we are trying to say here. The total value of cross-border deals in this space stood at over $203 million during the first two months of 2008, less than half the levels notched in the same period of previous year, although the number of deals was marginally higher.

During January and February of 2008, companies stitched 18 M&A deals in the cross-border category (where Indian IT/BPO companies acquired overseas firms or vice versa), of which 14 were outbound transactions. In the corresponding period previous year, the number stood at 15, with 10 outbound deals fetching $520 million.