Cap Gemini acquires Kanbay

Cap Gemini pays $ 1.25 billion to acquire Kanbay and in the process picks up 5.000 employees in India and $ 300 m a year in revenues in financial services clients. It follows on the heels of EDS acquiring a majority stake in MphasiS. Cap and EDS are trying to keep up with IBM's and Accenture's global talent pools, but they are also protecting their own customer bases from the larger Indian firms like TCS and Infosys. It will increase pressure on the Indian vendors to acquire mid-sized western firms and expand customer bases of their own. To date, they have shied away from using their large market caps for acquisitions, preferring instead to grow organically.