It is one of the biggest IT-BPO transactions in a decade, and as this highlights the growing influence of AI in business operations, French technology giant Capgemini has agreed to acquire Indian origin business process management company WNS for $3.3 billion (approximately Rs 28,280 trillion) in all cash transactions.
The acquisition, which is Capgemini's biggest in nearly a decade, is expected to significantly strengthen its presence in India and deepen its capabilities in intelligent operations powered by AI.
Founded in Mumbai in 1996, WNS employs over 64,000 people worldwide, with around 20,000 in India in 12 cities, including Mumbai, Chennai, Vizag and Indore. The transaction could have a major impact on Capgemini's already vast Indian business, which currently employs around 150,000 professionals. The move further strengthens the Capgemini footprint in major verticals, such as BFSI, travel, manufacturing and retail, providing a platform to provide the next generation of service aimed at a $1.5 trillion market by 2035.
Capgemini offers $76.50 per WNS shares, a premium of 17% from WNS's last closing price on July 3, and an average of 28% over the 90-day period. Despite this premium, Capgemini shares slipped over 5% on Monday, reflecting investors' concerns about the long-term impact of AI on the BPO sector. Analysts at Morgan Stanley pointed out that the possibility of automating generative AI could reduce traditional BPO revenues, increase competition and pose risk to expected returns from transactions.
However, Capgemini remains optimistic. The company said the acquisition would increase by 4% in earnings per share in 2026, 7% in 2027 and 7% in sy. The revenue synergy is expected to reduce costs by 100 million to 140 million euros, and by 2027, costs between 50 million and 70 million euros per year. Transactions approved by the boards of both companies are expected to close by the end of the year and maintain shareholder and regulatory approval.
“The acquisition of Capgemini's WNS provides the group with scale and vertical sector expertise to grasp the rapidly emerging strategic opportunities created by the paradigm from traditional business process services to agent AI-driven intelligent operations,” said Aiman Ezzat, CEO of Capgemini.
Currently headquartered in New York, London and Mumbai, WNS serves more than 700 clients worldwide and recently expanded its capabilities through the $63.4 million acquisition of AI company Kipi.ai. WNS CEO Keshav R Murugesh said this combination leads to the next wave of transformation. “Already digitalized organizations are trying to rethink their current operating model by embedding AI into the core and moving from automation to autonomy,” he said.
Analysts see this move as a precursor to further consolidation of the IT and BPO sectors driven by the pressing need to integrate AI capabilities. “Specialized BPO companies are struggling to build their technical capabilities organically. This transaction could trigger a wave of similar acquisitions.”
At WNS size, if Capgemini's revenue base increases by just 5%, some say the addition is not transformative, while others say it shows long-term strategic value.
“Both companies have good synergies. Capgemini will benefit from acquisitions with additional market share in key markets like ours where WNS has established a presence,” she also said this could trigger a consolidation wave that calls for providers to measure inorganic growth when they face slower trading conversions in general.
