Indian IT firms are increasingly buying technology businesses from clients while securing long-term contracts, as TCS’s acquisition of Porsche’s MHP, Wipro’s purchase of Olam’s Mindsprint and HCLTech’s Guardian deal show. The strategy allows them to gain specialised talent and industry expertise while securing future technology and AI work.
Sandeep Barve, Founder & MD, InUnison Private Limited, said specialised acquisitions can accelerate access to industry knowledge, including “operating-model understanding, processes, platforms, specialised talent and customer relationships”.
Tata Consultancy Services (TCS) on August 24 agreed to acquire 100% of Porsche-owned management and IT consultancy MHP for an enterprise value of 320 million euros. MHP reported turnover of 742 million euros in calendar year 2025, and has more than 4,500 employees.
Alongside the acquisition, Porsche entered into a five-year strategic agreement worth 1.25 billion euros with TCS and MHP. The partnership covers AI-led transformation across engineering, manufacturing, operations, customer experience and enterprise transformation.
Neel Mehta, research analyst at Deven Choksey Research, said MHP’s 4,500 specialists bring expertise across automotive, SAP, manufacturing digitalisation, connected mobility and AI, “capabilities that would be difficult to build organically.”
“MHP expands TCS’s presence in European automotive and industrial AI transformation while reducing dependence on the US market,” he said.
Mehta linked the deal to wider changes in the IT services industry. “The MHP acquisition reinforces TCS’s strategic shift from predominantly organic growth towards capability-led inorganic expansion,” he said. TCS had spent $1.15 billion on acquisitions in ten months.
He said the shift reflects “increasing pressure on the traditional IT services growth model amid AI-driven productivity changes,” and said the Porsche contract improves revenue visibility rather than addressing TCS’s organic growth challenge.
Deven Choksey Research estimates that MHP could add 3% to revenue to TCS and around 1% to profit after tax and expects the contribution to begin in the fourth quarter of FY27 and reach full contribution in FY28.
Barve said the key test is whether an acquisition creates leverage beyond the business acquired. “Can the acquired capability become a reusable foundation for creating multiple higher-value offerings,” he said.
TCS Is Not The First
The MHP deal follows Wipro’s April agreement to acquire Olam Group’s technology business Mindsprint for $375 million. The transaction was accompanied by an eight-year strategic transformation engagement expected to exceed $1 billion, including $800 million of committed spending. Wipro completed the acquisition in May.
In July, HCLTech agreed to acquire Guardian Life’s India global capability centre for $10.5 million alongside a seven-year strategic relationship.
The transactions have different structures, but all involve Indian IT companies acquiring technology capabilities and specialised talent from organisations with which they have established or expanded long-term relationships.
Barve said the model could extend across industries, but warned that companies “will need to be selective and assess what strategic leverage an acquisition genuinely provides”.
