IT services company Wipro Technologies expects its next acquisition to be in the region of £500m as it continues its aggressive global growth strategy and aims to reach a target of £5bn annual turnover by 2010.
Kees Ten Nijenhuis, senior vice-president at Wipro told Computer Weekly that the company was "actively looking" for new acquisitions as part of its "string of pearls" acquisition strategy to achieve a comprehensive portfolio of offerings.
He said the company would continue to add to the eight successively larger acquisitions it had made in the past five years as one of its main strategies for growth.
The company's other strategies include the organic growth of existing services and expansion through partnerships and alliances.
"An acquisition around the £500m mark would be the next step up from our most recent acquisition of Infocrossing in 2007 for £300m," said Ten Nijenhuis.
He said growth by acquisition was important to Wipro because it enabled rapid access to customers, domain knowledge and a larger territorial footprint to widen channels to market, which would otherwise take much longer to achieve.
"The Indian technically-skilled labour market is also heating up with competition to the IT industry from the telecommunication and other industries, so Wipro is reducing its dependency on that skills pool by recruiting in countries like Brazil, Mexico and even the US," said Ten Nijenhuis.
In the UK, he said Wipro was concentrating on working with MBA programmes at several universities to recruit local talent to bolster local expertise and support "solid growth" in a market Ten Nijenhuis said was very "open" to new technologies.
In the rest of Europe, Wipro was aiming mainly at acquiring companies that provided niche service lines such SAP support.