Indian IT firms like Wipro, HCL Tech likely to bid for CSC if it splits operations


Indian information technology companies, including Wipro and HCL Technologies, could bid for Computer Science Corp if the US-based IT company splits its public sector and commercial operations before putting itself up for sale. Senior executives at both Noida-based HCL Technologies and Bangalore-based Wipro said they could “consider” the commercial business of Computer Science Corp as it will help them scale up their presence in the United States and Europe.

“Local data centres and existing IT infrastructure business can make for a risky, but good asset to buy—we will surely consider if it’s split,” said an executive at one of the top five Indian software firms. CSC has infrastructure business contributing 35% to its topline while global business services, including application services and consulting, account for 34% while the North American public sector brings the remaining 31%.

“If the business is split, HCL should be the favourite,” said a Mumbai-based analyst at a domestic brokerage, adding hat the company’s own application delivery business has not seen much traction and a buyout should help the company. CSC, which reported nearly $13 billion (Rs 80,000 crore) in revenues last fiscal, has reportedly reached out to private equity group, Blackstone and Bain Capital to gauge this interest in management-led buyout, Bloomberg reported on Tuesday.

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