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The Economic Times
The Economic Times
Shristi Achar

IT firms spend big on acquisitions as AI hits growth

Indian IT service providers are increasingly pursuing acquisitions to gain access to clients, geographic presence and market share as AI-led pricing pressure weakens organic growth.

Companies in the top-tier, mid-tier and emerging IT service segments spent a record $7.1 billion in the last two years on acquisitions — $5 billion in 2025 and $2.1 billion in 2026 thus far, according to data from tech consultancy UnearthInsight.

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