The proposed acquisition of homegrown tech firm Nagarro by Persistent Systems is one of the biggest bets yet on the future of AI-led technology services by an Indian IT services firm. Nagarro’s co-founder and CEO Manas Human believes the deal is not only about adding scale, but also about creating a global leader in “AI transformation and engineering” at a time when generative AI is reshaping the IT services industry. In an interview with BusinessLine, Human explains why Persistent was the right partner, why he believes fears that AI will disrupt IT services are overblown, and how engineering-led firms can emerge stronger in the next phase of enterprise technology.
Could you share how the deal came about? Did Nagarro approach Persistent, or the other way around?
It’s been known in the market for some time that we were looking to take Nagarro private. (The company is listed in Germany.) The AI revolution requires access to capital and resources that may not be readily available in the current listed context. With that background, Persistent reached out to us and we have been in discussions for several months.
Were you in talks with multiple potential partners or was Persistent the only one on the horizon?
