Software Companies
Wipro Plans Mergers and Acquisitions with Japanese Companies
Overall Rating:  [5/5]Total Votes [ 5 ] |
|
Wipro Ltd. announced its desire to forge ties with Japanese Software Companies in February 2008. The wish to engage in the mergers and acquisitions with Japanese companies has put the spotlight on the growing aspiration of Wipro Ltd. to be a part of the major software and information technology based projects in Japan.
The Japanese Software Services and Information Technology market is dominated by two companies - NEC Corporation and NTT Data Corporation. These companies are engaged in collaboration with the Japanese central postal system, the different industrial manufacturing and production units and several banks in the country. Due to this, the foreign software service companies find it extremely difficult to get major government orders. Wipro Ltd. has been a part of the Japanese software services and information technology industry, since the year 1998. The company expects annual revenue of US$ 92.6 million from the Japanese software services market by the end of March, 2008, which would be around 3.5% of the total proceeds of the company. Last year, the company acquired a wireless design unit belonging to the Oki Electric Industry Co Ltd.
A.L. Rao, the Chief Operating Officer (COO) of Wipro Ltd., said that the company has performed extremely well in mergers and acquisitions and it is eying the Japanese software services and information technology industry as one of the most potential markets for its future mergers and acquisition activities. It would be one of the most important strategic developments of the company in recent future.
The head of Wipro's Japanese and Chinese operations, Hiroshi Alley, said that Wipro has plans for merging and acquiring Japanese software services provider in order to get hold of the government projects in Japan. The big companies in the Japanese software services and information technology industry such as NTT Data Corporation and NEC Corporation would join hands in order to the get hold of a government based projects and that is one of the most important factors for the acquiring government projects. Wipro Ltd. being a company having Indian origin was not in a position to even put a bid for getting the projects.
At the beginning of 2008, Infosys Technologies Ltd. forged a strategic alliance with Nihon Unisys Ltd. of Japan in order to develop new software based products and market those products. With the mergers and acquisitions, Wipro Ltd. would be in a position to compete in the bid of government projects. The company is expecting a substantial increase the total revenue earned from the Japanese market through the mergers and acquisitions.
A.L. Rao, the Chief Operating Officer (COO) of Wipro Ltd., said that the company has performed extremely well in mergers and acquisitions and it is eying the Japanese software services and information technology industry as one of the most potential markets for its future mergers and acquisition activities. It would be one of the most important strategic developments of the company in recent future.
The head of Wipro's Japanese and Chinese operations, Hiroshi Alley, said that Wipro has plans for merging and acquiring Japanese software services provider in order to get hold of the government projects in Japan. The big companies in the Japanese software services and information technology industry such as NTT Data Corporation and NEC Corporation would join hands in order to the get hold of a government based projects and that is one of the most important factors for the acquiring government projects. Wipro Ltd. being a company having Indian origin was not in a position to even put a bid for getting the projects.
At the beginning of 2008, Infosys Technologies Ltd. forged a strategic alliance with Nihon Unisys Ltd. of Japan in order to develop new software based products and market those products. With the mergers and acquisitions, Wipro Ltd. would be in a position to compete in the bid of government projects. The company is expecting a substantial increase the total revenue earned from the Japanese market through the mergers and acquisitions.
