The Silicon Review ^Asia

IT service companies are seeing an increase in the opportunities in chasing revenue from the new software vendors sparking a series of buyouts. In the latest deal that affirms the strategy, Infosys said on Monday that it would pay around $250 million to buy Simplus a consulting and implementing Salesforce software. The deal comes after a week after Cognizant, a rival, announced two transactions in the space heating the race for cloud services revenue. During 2018, Infosys had acquired Fluido, a firm with core competence in Salesforce software for the European market. Infosys’ latest acquisition along with the Fluido buy will help bolster its Salesforce practice.

“This acquisition is a strong one for Infosys. When we did a study on provider capabilities for Salesforce ecosystem, we had seen that Infosys – though being  a leader – was lagging some of its competitors.,” said MrinalRai, principal analyst at consultancy ISG. “They had strong offshore capabilities, but they needed a similar onshore presence.”

Salesforce is one of the largest Software-as-a-service companies aptly named because it allows customers to rent software per user on the Cloud or the Internet. Salesforce is growing at 20% annually. “This acquisition is key to staying relevant to the digital priorities of our clients and demonstrates our commitment to the Salesforce ecosystem,” Pravin Rao, CEO of Infosys, said in a statement. “The acquisition reaffirms our continuous endeavor to strengthen our strategy of scaling our Agile Digital and cloud-first digital transformation capabilities.”