Capgemini Acquires WNS for $3.3 Billion: A Sign of IT+BPO Model Revival

Capgemini's acquisition of WNS for $3.3 billion may signal a revival of the IT-plus-BPO model, as analysts expect consolidation in the industry due to AI adoption. The traditional BPO industry is declining, but some are using AI to disrupt and reinvent services. The deal combines IT and BPO services, along with AI and engineering capabilities, and reflects the growing demand for services-as-software.

Capgemini's acquisition of WNS for $3.3 billion may signal a revival of the IT-plus-BPO model, as analysts expect consolidation in the industry due to AI adoption. The traditional BPO industry is declining, but some are using AI to disrupt and reinvent services. The deal combines IT and BPO services, along with AI and engineering capabilities, and reflects the growing demand for services-as-software.

Capgemini, a French IT giant, has agreed to acquire WNS, a leading BPO firm, for $3.3 billion. The deal involves a cash consideration of $76.50 per WNS share, valuing the transaction at $3.3 billion [1]. This acquisition is part of a broader industry shift towards AI-led reinvention and service-as-software models [1].

The acquisition is expected to boost Capgemini's normalized EPS by 4% before synergies in 2026 and by 7% post-synergies in 2027 [2]. The deal aims to supercharge Capgemini's AI capabilities within the BPO sector, branding it as the "showcase for Agentic AI" [2].

Analysts anticipate further consolidation in the BPO sector as companies seek to leverage AI for growth and digital transformation. According to Forrester's vice president and research director, Ashutosh Sharma, pure-play BPO firms will see growth only if they can leverage AI [1]. Similarly, Everest Group expects significant transformation in the technology services industry over the next three to five years, potentially leading to a wave of mergers and acquisitions [1].

The global third-party BPS market size is estimated to be close to $300 billion, with BPO market also known as BPS or BPM (business process services or management) [1]. The acquisition of WNS by Capgemini is one of the largest transactions in the technology services sector, highlighting the growing importance of AI and digital transformation in the industry [1].

Capgemini's acquisition of WNS is part of a broader trend in the industry. Accenture, Genpact, and Firstsource have also launched or expanded services that leverage AI to disrupt traditional BPO models [1]. Clients of technology service providers are increasingly seeking to reinvent and reimagine outcomes using AI-led productivity and operational gains [1].

The acquisition reflects the ongoing shift in enterprise demand from FTEs (full-time equivalent) to services-as-software, creating a combined entity that could compete on an equal footing with Accenture and even outcompete the Big 4 – PwC, Deloitte, KPMG, and EY [1]. Forrester's Sharma expects similar consolidation in product engineering services, as traditional product engineering teams can benefit from AI, cloud, and other emerging technologies [1].

The global IT and business services market is also seeing strong growth, driven by AI and cloud demand. According to the latest ISG Index™, the combined market ACV was up 17% in the second quarter of 2025, reaching a record $29.2 billion [3]. The demand for AI is proving to be stronger than the impact of macroeconomic and geopolitical uncertainty on the global market [3].

References:
[1] https://m.economictimes.com/tech/information-tech/capgeminis-3-3-billion-wns-buy-may-revive-it-plus-bpo-model/articleshow/122371687.cms
[2] https://in.investing.com/news/stock-market-news/capgemini-to-acquire-outsourcing-firm-wns-for-33-bln-4901264
[3] https://www.morningstar.com/news/business-wire/20250710227200/ai-driven-cloud-demand-fuels-q2-growth-in-global-it-and-business-services-market-isg-index