Buying India-centric IT outsourcer Syntel to rev up offshore play for Atos

The acquisition of Syntel, which has around 18,000 employees in India, will be beneficial for Altos, traditionally a strong player in Europe.

French IT outsourcing major Atos’ acquisition of Michigan-based Syntel for $3.4 billion will help the European firm bolster its offshore presence in India — something the company has been aiming at for a long time. 

Nasdaq-listed Syntel has around 18,000 employees in India, constituting roughly a little over 78 per cent of its global workforce. Having a strong offshore delivery base will also give Atos enough headroom to expand its profit margins, which still stand at a low double-digit figure as compared to Syntel's 24 per cent. The acquisition will be beneficial for Altos, traditionally a strong player in Europe.