As aI reshapes the global IT services industry, acquisitions are emerging as the fastest route to growth. With enterprises tightening discretionary technology spending and AI reducing demand for people-intensive services, companies are increasingly buying specialised capabilities instead of building them organically.

Global consulting giant Accenture’s decision to raise its acquisition budget for FY26 to about $9 billion from an earlier target of $5 billion reflects that shift. The company expects deals already announced to contribute nearly 2% of its FY27 revenue, underscoring the growing role of inorganic growth in its business model.

The acquisitions also reveal where future demand is expected to come from. Over the past few months, Accenture has acquired companies spanning cybersecurity, operational technology (OT) security, industrial AI, network intelligence, digital transformation and the creator economy. Its recent purchases include cybersecurity firms runZero, NetRise and Dragos, applied AI startup Faculty, network intelligence company Ookla, industrial consulting firm Industries eXcellence Group, creator agency Whalar, and cloud software specialist Avanseus. Rather than simply adding revenue, the company is expanding its presence in areas where enterprises are expected to increase spending as AI moves from experimentation to large-scale deployment. The strategy also broadens Accenture’s total addressable market beyond traditional IT services.

Indian IT companies are pursuing a similar strategy, albeit on a smaller scale. Infosys acquired healthcare technology firm Optimum Healthcare IT for $465 million and technology solutions provider Stratus for $95 million, earlier this year. HCLTech bought Singapore-based Finergic Solutions and also invested $234 million for a 10.5% stake in AI startup Sarvam, while Wipro bought Mindsprint from Singapore’s Olam Group. Mid-tier firms such as Coforge, Mphasis and Tech Mahindra have also stepped up acquisitions across AI, software testing and digital engineering.

According to Greyhound Research, Indian IT services firms are expected to spend $6.5-7 billion on acquisitions during calendar year 2026.
“The traditional consulting model is not disappearing, but it is becoming increasingly difficult to generate meaningful growth from people-intensive services alone,” Phil Fersht, founder and CEO of HFS Research, told FE.

Acquisitions, he said, provide a faster route to AI capabilities, intellectual property and industry expertise than building them organically, as clients increasingly seek business outcomes instead of larger project teams.
Gaurav Parab, principal research analyst at NelsonHall, said the next phase of AI adoption will extend beyond enterprise software into factories, utilities, healthcare and other critical infrastructure. As a result, operational technology, cybersecurity and proprietary industry expertise are becoming increasingly valuable.

Greyhound Research founder and CEO Sanchit Vir Gogia said investors will now watch whether these acquisitions translate into stronger client wins, renewals, margins and AI adoption. The bigger challenge, he added, will be preserving the strengths of acquired companies while integrating them well enough to deliver long-term value.