M&A to strengthen as IT services players try and differentiate: Study

Nasscom-EY study says overall deal activity may be at record levels over past few quarters after huge drop in Q2FY20. Deal volume and value of $297 bn in 2021 much higher than 2020 level

Acceleration in digital transformation and increase in demand for technologies enabling cloud transformation, cyber security, data analytics and more is driving the IT services industry towards mergers and acquisitions (M&A).

According to a report by Nasscom and EY the overall deal activity is possibly at record levels over the last few quarters following a significant drop in Q2FY20. Deal volume and value of over $297 billion in 2021 is significantly higher than 2020 level.

This is backed by the fact that global technology services spending is projected to be over $1.2trillion in 2022 according to Gartner.

The deal activity has