Indian IT giant, Tata Consultancy Services (TCS) has recently announced the acquisition of London-based digital design firm, W12 Studios, marking it as the first digital buyout expected to help the company get a bigger share in the global digital marketing sector.
Sources suggest that W12 Studios, under the acquisition, will be part of TCS Interactive, the digital design division within TCS’ Business & Technology Services organization, further strengthening its already impressive array of creative and experience services.
Reportedly, this would be the IT giant’s first acquisition after acquiring French SAP service provider, ALTI SA in 2013. Since then, TCS had been on a steady growth path while domestic rivals such as Cognizant, Wipro and Infosys went on an acquisition drive, especially to acquire digital design firms. According to The Economic Times, Krishnan Ramanujam, President of TCS’ Business and Technology Services, said that W12 is one of the world’s most iconic design company, which possess multi-disciplinary capabilities and TCS through this acquisition plans to expand its interactive business into a significant revenue stream in the next few years.
Over the years, TCS has invested in innovative design labs, content studios, design studios and distributed Agile engineering centers, operated with cutting edge multidisciplinary talents. Through this acquisition TCS aims to enhance its customer experience through its Business 4.0 transformation, Ramanujam added.
As per reliable sources, companies nowadays aim on conducting acquisitions, not entirely for gaining new customers, but for buying new technological capabilities and offerings, which TCS is currently undertaking by building internally and through its nine innovation labs spread across the world.
The acquisition will enable TCS to climb the project and service offering portfolio from their largely backend solution offerings to more clients with large margins like Accenture, cite sources.
As per trusted reports, Accenture has reportedly bought a slew of companies in the space, eventually brining its digital marketing business revenues to about $8 billion in a year. In addition, rival IT giants such as Cognizant, Infosys and Wipro have also made acquisitions in the digital marketing sector.