Infosys acquires a Nordic firm

8/10/2019 Infosys acquires a Nordic firm

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M & A Project

Infosys acquires Tieto


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Industry Analysis The rise in the software industry over the last ve years has

been due to a technological shift by organisations towardsusing cloud, mobility and social technologies.

According to NASSC!, s"ending on software to""ed #$%&billion in &'($ from #&)& billion in &''%, which is a CA*+ of%. "er cent.

&''% &'(' &'(( &'(& &'($

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&''

-''

''

/''

('''

(&''

Services total s"end

Software s"end

0ardware s"end

Worldwide IT spending

$ Billion


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Region wise spend in IT/ITes

India1s share in global o2shoring mar3et reaches "ercent in &'($ .

Though India currently accounts for over half of the globalo2shoring mar3et, o2shoring is a very small "art of theglobal IT services mar3et. This indicates that there isconsiderable headroom available for growth.

&'4

$-4

-4

Asia 5acic

6uro"e,!iddle 6ast

and Africa

Americas

+ow -


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Analysing the exports from India

Revenue ased on geography for!"#$%#'

('4

&%4

(4

+est of 7orld

6uro"e

8S

+ow -

!a9ority of the revenuecomes from 8S due to whichmost of the com"anies:

revenue is "egged to;uctuations in the dollar.

Com"anies are diversifyinginto 6uro"e,Asia


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Revenue ased on verticals for!"#$%#

()*I' The financial services segment (includes securities, banking and insuranceservices) comprises the largest segment of the Indian IT services industry.

Telecom' There are several Indian software companies that focus on thetelecom sector, including the telecom equipment and service provider segments.

Manufacturing' The primary focus of IT investments by the manufacturing

sector is on improving competitiveness through enterprise software such as productlifecycle management (P!), supply chain management ("#!), customer

relationship management (#$!), enterprise resource planning (%$P) and e&

business initiatives.

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=>SI

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+eography Analysis on ,urope

The 6uro"ean recovery remains intact in s"ite of the "oor growthrate in some region.*rowth rate would be modest this year but gather momentuminn &'(.

6uro


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Ac-uiring company' Infosys Infosys Technologies @td is a global IT services com"any.

It "rovides end


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Infosys


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ertical mar3et brea3


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.eal Rationale After the acquisition of @odestone, the Durich based consulting rm Infosys

"urchased for #$' million, Infosys now loo3s towards a @odestone or its ali3e

in the Nordic region. >rance and *ermany have been the main focus of Infosys over the "ast

decade .

ordic IT mar0et valued at 1#23#(illion "rovides an am"le amount ofsco"e for Infosys to increase its local "resence in the region.

ne of the ways to grow Infosys revenue is to eB"and the com"any1s local"resence in non


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6egalities

Information Technology Act ' Introduced by an act of 5arliament inEune &''', the Information Technology FITG Act "rovides legal

recognition to all transactions carried out by means of electronic datainterchange and other means of electronic communication.

Intellectual property right laws for computer software

Privacy' 5rivacy issues are dealt with by the IT Act of &'''.

Policies relating to inound and outound investments

Relaxation of limits on overseas investment

)oreign exchange%related policy

Incentives provided under the ,xim Policy

,xtension of incentives for units located in a ,:;/*,< for ayear

:ther policy%related aspects(ene=cial depreciation

)ringe (ene=t Tax 4)(T7 and its impact on IT/ITe*

Minimum Alternate Tax 4MAT7

ational Policy on Information Technology ? !"##

Infosys acquires a Nordic firm

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