8 months ago
Indian IT Firms Invest Billions in Salesforce Expertise
Indian IT companies are buying other companies that specialize in Salesforce, which is a software that helps businesses manage their customers and data.
These acquisitions are happening because businesses are using more customer data to make decisions, and AI is changing how companies operate.
Salesforce is growing, and Indian IT firms want to be part of that growth.
They are spending billions of dollars to buy these companies because it's faster than building their own Salesforce expertise from scratch.
Some of the big Indian IT companies, like TCS, Wipro, and Infosys, have made these acquisitions, as well as smaller ones.
This helps them offer better services to their clients and stay competitive in the market.
Indian IT firms have spent at least $2 billion over the past decade acquiring Salesforce-centric companies to enhance their customer management software offerings and AI capabilities.
TCS's recent acquisition of Coastal Cloud for $700 million is part of a broader trend, with 17 such acquisitions by Indian IT firms in the past decade.
Salesforce's revenue grew by 9% to $37.9 billion in 2023, making it slightly larger than TCS, which had $30.18 billion in revenue in FY25.
Mid-cap IT firms like Persistent Systems, Mindtree, Coforge, Mphasis, and Sonata Software have also made significant acquisitions in the Salesforce space, with some starting as early as 2016.
The focus on Salesforce systems is driven by the growth of software-as-a-service (SaaS) and the need for deeper insights from customer data, especially amid uncertain demand and scarce mega contracts.
- Who
- Indian IT firms, including Tata Consultancy Services (TCS), Wipro, Infosys, Cognizant, and mid-cap firms like Persistent Systems, Mindtree, Coforge, Mphasis, and Sonata Software
- What
- Acquisitions of Salesforce-centric firms to enhance their customer management software offerings and AI capabilities
- Where
- Primarily in the United States, with Indian IT firms acquiring firms like Coastal Cloud, ListEngage, Appirio, and others
- When
- Over the past decade, with recent notable acquisitions in 2023 and 2024
- Why
- To leverage the growth of Salesforce's software and AI capabilities, automate processes, and gain deeper insights from customer data, especially amid uncertain demand and scarce mega contracts
Key facts
- Total acquisitions by Indian IT firms in the past decade
- 17
- Total amount spent by Indian IT firms on Salesforce-centric acquisitions
- $2 billion
- Salesforce's revenue in 2023
- $37.9 billion
- TCS's revenue in FY25
- $30.18 billion
- Coastal Cloud's revenue in 2023
- $132 million
- TCS's acquisition of Coastal Cloud
- $700 million
- TCS's acquisition of ListEngage
- $73 million
- Wipro's acquisition of Appirio
- $500 million
- Infosys's acquisitions of Fluido and Simplus
- $320 million
- Cognizant's acquisitions of SaaSfocus, El-Technologies, Code Zero, and Lev
- Undisclosed
- Persistent Systems' acquisitions of PRM Cloud Solutions, Parx Werk AG, and Youperience
- Undisclosed
- Mindtree's acquisition of Magnet 360
- $50 million
- Coforge's acquisition of Whishworks
- $41 million
- Mphasis's acquisition of Silverline
- $132 million
- Sonata Software's acquisition of Quant Systems
- $160 million
Quotes
Phil Fersht
Chief executive of HFS Research, a Massachusetts-based IT consulting firm
“Salesforce, ServiceNow, and cloud platforms remain anchor technologies for transformation deals. Enterprise leaders need deep workflow expertise and US-based talent to reinvent sales, service, and marketing for the agentic AI era. The Salesforce ecosystem is fragmented, making acquisitions faster than building from scratch.”
livemint.com
“For a company that built itself on organic growth, the Coastal Cloud acquisition signals that the AI battleground has shifted to industry workflows and front-office customer operations.”
livemint.com
Pramod Gubbi
Founder of Marcellus Investment Managers
“SaaS has taken off over the last couple of decades and that has created a plethora of such niche software tools. Many of these can be hosted on the cloud and do not have major infrastructure requirements.”
livemint.com
“Salesforce and related CRM technologies move the needle more for the mid-caps as they have domain-specific focus. Such acquisitions can help these companies grow faster in those niche domains.”
livemint.com
Ramkumar Ramamoorthy
Partner at Catalincs
“With time-tested approaches such as reliance on large deals, vendor consolidation and partnership with GCCs providing only a limited canvas for growth, we are now seeing a series of acquisitions focused on expanding high-value service offerings and jump-starting AI-advisory-led growth opportunities.”
livemint.com
Amit Chandra and Vinesh Vala
Analysts at HDFC Securities
“The acquisition significantly strengthens TCS’s AI-led consulting, multi-cloud Salesforce services, and mid-market access, aligning with the sharp rise in AI-driven deal activity across the IT services landscape.”
livemint.com
