Tech Mahindra pulls out of race to acquire Mphasis

Tech Mahindra has decided to pull out of the race for Mphasis to avoid a bidding war with other suitors.

“Tech Mahindra is no longer contesting to acquire Mphasis,” sources privy to the development told Business Standard. A company spokesperson declined to comment on the matter.

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Cognizant rings alarm bell for Indian IT services players

With Cognizant, which has so far defied the trend of moderate growth in information technology (IT) services sector, projecting lower growth in calendar year (CY) 2016, export-dependant Indian companies have a major reason to worry.

The Nasdaq-listed IT services company on Monday said it expects revenue to grow at 9.9–14.3 per cent, one of its lowest ever, and cautioned about spending cuts by the clients in financial services and healthcare sectors.

It has come as a surprise for many that Cognizant, which was known for best growth among its peers, has given outlook whose lower end trails the overall industry guidance issued by Nasscom. For CY16, Nasscom expects IT services to grow between 10-12 per cent, lower than the previous year.