Sun, 03 Oct 2010 | BUSINESS NEWS
2010 has been a very busy year for acquisitions in the technology sector, with £2.9 billion of deals already in 2010, compared to just £1.1 billion for the whole of 2009.
The question is why is all this money being spent on buying technology businesses?
According to Ian May, vice president of HP’s software division, acquisitions are the fast-track route to procuring smart people, cutting-edge technology or a swathe of customers. And right now there is a big demand for both new technology and people with specialist skills.
May says that acquiring a business for its technology is often far more cost effective than developing it in-house.
Deepak Jain, senior vice president of Wipro, says that buying a company for its people is equally important, considering that it often takes one to two years for existing staff to build up new IT skills.
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