IT Deal Activity Accelerates as AI Race Heats Up

Companies in the IT services sector are buying smaller, specialized firms that focus on artificial intelligence (AI) and data analytics.

This is because AI is being adopted very quickly, and it's faster to buy these capabilities than to develop them in-house.

Big companies like HCLSoftware and Tata Consultancy Services are doing this, as well as mid-sized firms like Coforge.

Even in the business process outsourcing area, companies are buying AI capabilities to stay competitive.

Private equity firms might also sell or buy AI-focused companies, adding to this trend.

Overall, the race to get better at AI is driving a lot of deal-making in the IT world.