Indian IT services firms have demonstrated minimal commitment to cybersecurity acquisitions despite growing market demand. According to a Mint review of acquisitions, between April 2020 and June 2026, India's five largest IT services firms spent a combined $6.8 billion to acquire approximately 49 companies. Only two of these acquisitions were pure-play cybersecurity firms, representing an investment of about $300 million in specialized cyber defence capabilities, or just 4.4% of their total acquisition spending.
Last April, Infosys Ltd, India's second-largest IT firm, acquired The Missing Link, a Sydney-based cybersecurity firm, for around $68 million. The acquisition included strategic advice, offensive and defensive security services, cybersecurity risk assessments and compliance capabilities. In December 2021, Wipro Ltd, the country's fourth-largest IT services provider, purchased Austin-based cybersecurity consulting firm Edgile for $230 million to develop Wipro CyberTransform, a service designed to help clients manage cyber risks and establish security guardrails.
Industry experts attribute Indian IT's cautious approach to cybersecurity acquisitions to prohibitive costs and specialized talent shortages. According to Namratha Dharshan, chief business leader for India Research at ISG, "Cyber skills don't come cheap and skills are very niche so finding the right talent at the right price is tough." Phil Fersht, CEO of HFS Research, noted that Indian IT services firms have traditionally built cybersecurity capabilities organically rather than through large acquisition programs. Accenture's cyber business generated $10 billion last year, representing roughly 14% of its total revenue and employing more than 19,000 cybersecurity professionals.
The contrast with global rivals is stark, as Accenture recently acquired three prominent cybersecurity firms—Dragos, NetRise, and runZero—at a total enterprise value of $4.2 billion. Each acquisition brings distinct specializations, with Dragos offering cybersecurity solutions for operational technology infrastructure, while runZero and NetRise focus on detecting and fixing cybersecurity vulnerabilities in servers and devices. This spending matches the total annual revenue of LTIMindtree Ltd, India's sixth-largest IT services provider, which concluded the last fiscal year with $4.8 billion in revenue.
The cautious approach by Indian IT firms stands in contrast to aggressive strategies by global rivals, with Accenture CEO Julie Sweet noting that cybersecurity is a key enabler for AI and cannot be separated from critical infrastructure needs. ICICI Securities analysts highlighted that Accenture's move into the mid-market segment and doubling down on cybersecurity indicates muted demand in current addressable markets. The dual threat from AI, which has caused traditional IT services shares to plunge more than 30% this year, while simultaneously lowering barriers for cybercriminals, is driving this strategic pivot toward cybersecurity platforms. Recent developments show that cybersecurity remains a critical priority, with companies like BMC Software continuing to strengthen their cybersecurity capabilities through strategic acquisitions and AI integration.
