Acquisitions VS Organic growth
Recently I have seen so many acquisitions from Google. It invested nearly $500M in social acquisitions. It bought Slide, Jambool for $200 Milliion and invested around $100 Million in Zynga. Since they are planning to grow is Social and it is the hot market. They started acquiring whatever they can in Social arena. Similar the case with Amazon, they bought Woot. They want to grow in online marketing division so they are doing the acquisitions.
I rarely saw any acquisition in Indian IT companies. When some one posed this question to Infosys, they said they are looking for the right fit. I am surprised they haven't got the right fit in last couple of years. There are many concept companies which can add value to their business. At least they can think of consulting or Integration or small product oriented companies. They have huge pile of cash.
I don't know if the company top bosses feel it safe to have their company reserves in bank rather than spending on acquisitions. It will take lot of time to grow organically. There is nothing wrong in mergers and acquisitions. HP and Compaq, Exon and Mobil, BP and Amoco, there are so many successful examples.
For example take Oracle or IBM they are buying every company in sight. They are growing huge. They have 360 degrees business now. If IBM eyes on something they wont leave the company until they buy it. I would like to see this kind of aggressiveness in Indian IT companies. Start pushing your reserves towards right fit acquisitions.
At the end of the day it matters you are Number 1 or not. It doesn't matter if you have grown organically or grown through acquisitions. History reads about No.1 not about ethical No.10s.
I rarely saw any acquisition in Indian IT companies. When some one posed this question to Infosys, they said they are looking for the right fit. I am surprised they haven't got the right fit in last couple of years. There are many concept companies which can add value to their business. At least they can think of consulting or Integration or small product oriented companies. They have huge pile of cash.
I don't know if the company top bosses feel it safe to have their company reserves in bank rather than spending on acquisitions. It will take lot of time to grow organically. There is nothing wrong in mergers and acquisitions. HP and Compaq, Exon and Mobil, BP and Amoco, there are so many successful examples.
For example take Oracle or IBM they are buying every company in sight. They are growing huge. They have 360 degrees business now. If IBM eyes on something they wont leave the company until they buy it. I would like to see this kind of aggressiveness in Indian IT companies. Start pushing your reserves towards right fit acquisitions.
At the end of the day it matters you are Number 1 or not. It doesn't matter if you have grown organically or grown through acquisitions. History reads about No.1 not about ethical No.10s.
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