software testing journal (![[info]](http://l-stat.livejournal.com/img/userinfo.gif){kind=small} testingsoftware) wrote,@ 2007-04-28 10:47:00 |
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CSC to buy Covansys
The spate for large multi-nationals to acquire software testing capabilities continues with the announcement that CSC is to buy Covansys.
Convan has 9,000 staff, of which 7,000 are in located offshore in India. Covansys reported a 4% decline in diluted EPS to $0.95, on revenue that rose 4.9% to $545m, with an operating profit margin of 10.6%. Covansys focuses on application maintenance and development projects, and also provides software testing services, and systems integration services.
CSC already has a offshore software testing capabilities so this is not so much about getting new capabilities as scaling up to compete. As CBRonline comments:
The spate for large multi-nationals to acquire software testing capabilities continues with the announcement that CSC is to buy Covansys.
Convan has 9,000 staff, of which 7,000 are in located offshore in India. Covansys reported a 4% decline in diluted EPS to $0.95, on revenue that rose 4.9% to $545m, with an operating profit margin of 10.6%. Covansys focuses on application maintenance and development projects, and also provides software testing services, and systems integration services.
CSC already has a offshore software testing capabilities so this is not so much about getting new capabilities as scaling up to compete. As CBRonline comments:
One clear trend is that western IT services providers are increasingly aggressive about using M&A activity as a way to grow their resource bases in India, as intense competition in the country's labor market makes it increasingly difficult to recruit the right quantity and level of skills organically. In the last three years, CSC, EDS, Capgemini, IBM, Perot Systems, have all executed takeovers designed to boost offshore numbers, and more should follow.
