The recent merger decision of two leading Indian software majors Polaris and OribiTech in an all stock deal apparently signals the birth of an Indian multinational in the global IT horizon, notwithstanding apprehensions as to whether this would actually set the tone of future consolidations in the Indian IT arena.
"Much depends on how the merger works out and how the merged entity fares in the highly competitive global IT market in the coming days" industry experts say.
Even Polaris CEO Arun Jain admits that the type of merger decided by the two companies has no precedents in India, indicating that the step is an experiment in consolidation in the IT sector.
However, according to Jain such mergers started in countries like US 30 years ago, whereas Indian corporates still hold family-run business in high esteem.
The top brass of the two companies also admit that the most critical challenge would be integrating the work force which would number 3800 in the merged entity, comprising 2544 on the rolls of Polaris and 1256 on OrbiTech.