Yesterday when I saw the headlines cursorily and saw Infosys and Capgemini-my instant thought was...WOW!! Capgemini has been wanting to expand its presence in India, picked up Kanbay last year, and now, Infy? Capgemini could double its manpower strength and take on Accenture, EDS, IBM..
For one who grew up in the previous millenium-it sure was a case of the subcontinental hangup!! As I sat down and read the details..did I realise I should get out of the time warp. It was Infy which was rumoured to be prowling after Capgemini -a company more than three times its revenue, and penetrate into the 'consultancy business' and Europe by this move..
An Indian contender is fast becoming de regueur in any deal story overseas. As I read the paper, I also notice Tatas are gearing to capture a bit of Cadbury Schweppes beverages business, and the ONGC-Mittal combine isnt just as yet giving up its quest for presence in the Central Asian republic of Kazhakistan..
But can we look at the perspective from the 'employee' angle?
Typically a M& A means- uncertainty for a large number of employees-atleast of the acquired company! Overnight, the bosses, the power structure, the culture, the career path almost seems fuzzy. Fortunately, in a knowledge driven company, the additional numbers would prove to be the cutting edge-but a whole lot of functions-would perhaps be duplicated. Several people might suddenly see their growth in the organisation stagnated. Some even rendered redundant.
How does this affect the job market??
- there are some high end consulting firms would tailormake solutions for due diligence,systems consulting, operations consolidation, organisation restructuring /transition management.
-opportunities for training professionals?
-recruitment firms would perhaps benefit by the vulnerability of the 'fringe employees'. Some of them could even offer 'outplacement' services to the merged entity-who would be inclined to create a 'humanitarian' image to the whole case.
-options for counselling services?
Am I missing out anything...? The companies benefit by the inorganic growth. Do people?
PS Todays news says the stockmarket pundits love it-both companies sharevalue being north!!. What is the HR person's gut feel? I shall love to hear from the fraternity....