Indian IT Firms Spend $4.5 Billion on Acquisitions in H1 2026; AI and Cybersecurity Drive Deal Activity

India's top 10 IT services companies have spent nearly $4.5 billion on acquisitions during the first half of calendar year 2026 as they seek to strengthen artificial intelligence (AI), cybersecurity and industry-specific capabilities amid a rapidly evolving technology landscape. 

According to a Moneycontrol report, the acquisition activity comes as IT companies seek new growth avenues while adapting to evolving client requirements and AI-driven changes in the technology sector. 

Indian IT Acquisition Activity Reaches Multi-Year High 

According to a Moneycontrol report, India's top 10 IT firms spent around $4.3 billion on mergers and acquisitions during FY2026, marking the highest annual spending level since the turn of the century. 

Among the notable transactions, Coforge announced the acquisition of Encora for $2.35 billion, one of the largest deals by an Indian IT company in recent years. Major IT firms including TCS, HCLTech, Infosys and Wipro have also returned to acquisition-led expansion after years of limited deal activity. 

AI and Cybersecurity Emerge as Key Focus Areas 

According to a Moneycontrol report, Indian IT firms are prioritising acquisitions that enhance capabilities in AI engineering, cybersecurity, cloud services, digital engineering, data management and product engineering. 

Companies have also focused on acquiring industry-specific platforms and expertise. Examples include Infosys' acquisitions of Stratus Global and Optimum, as well as HCLTech's acquisitions of Finergic and Hewlett Packard Enterprise's telecom solutions business. 

The shift reflects growing demand for specialised technology capabilities as enterprises accelerate digital transformation initiatives. 

Read More: FPIs Pull Out ₹63,450 Crore in June First Half; Financials and Oil & Gas Lead Outflows 

Deal Activity to Moderate in H2 2026 

Despite strong acquisition activity during the first half of 2026, analysts expect the pace of mergers and acquisitions to moderate in the second half of the year. 

One factor is the market reaction to recent acquisition announcements by Accenture. On June 18, Accenture announced deals involving cybersecurity companies like Dragos, runZero and NetRise, with a combined transaction value of approximately $4.18 billion. 

Following the announcements and softer revenue growth guidance, Accenture shares declined nearly 20%, prompting investors to closely scrutinise acquisition spending and valuations across the sector. 

Acquisition Trends Over the Past 3 Years 

The Indian IT services firms spent approximately $17 billion on acquisitions between calendar years 2023 and 2025. 

Acquisition spending stood at around $5 billion in 2023 before increasing to nearly $6.5 billion-7 billion in 2024 as companies expanded investments in cloud, data and AI capabilities. 

By 2025, acquisition activity reflected a move toward fewer but larger transactions focused on AI engineering, semiconductor capabilities, and advanced technology platforms. 

Conclusion 

Indian IT companies have accelerated acquisition activity in 2026, spending nearly $4.5 billion during the first half of the year to strengthen AI, cybersecurity and industry-specific capabilities.  

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