Information technology majors Cognizant and Capgemini have closed acquisitions in Europe as they look to expand in the second largest market for information technology.
Nasdaq-listed Cognizant has acquired Galileo Performance, a Paris-based provider of IT testing consulting services. French IT major Capgemini has completed the acquisition of UK-based Strategic Systems Solutions (SSS) by acquiring remaining 51% stake of the company.
Galileo will expand and complement Cognizant’s fast-growing global testing practice, currently among the world’s largest with more than 10,000 testing professionals while strengthening its existing business presence in France.
Outsourced testing services have been growing significantly not only for their value in lowering the cost of quality assurance and software maintenance, but also for ensuring tighter alignment of IT with business objectives, greater operational effectiveness, and improved governance and risk mitigation. Industry research firm IDC forecasts a five-year CAGR of 19% for discrete global testing services, reaching an estimated $17.7 billion by 2013, said Cognizant in a release.
The deal with UK's Strategic Systems will help Capgemini boost its presence in the capital markets sector and add new platforms in China and the Philippines. Capgemini owned 49% of SSS, and will now fully integrate SSS with its existing capital markets unit in the Financial Services Global Business Unit.
