Indian IT firms are increasingly embracing debt financing for major acquisitions, a departure from their traditional debt-free approach. This is aimed at bolstering AI capabilities, expanding market reach and accelerating growth. Companies like Persistent Systems are leveraging significant financing for strategic takeovers, reflecting a broader industry trend.

Smaller firms in particular target large contracts as clients consolidate vendors

BENGALURU: Persistent Systems' $1.5-billion bridge financing from Barclays for its proposed acquisition of German IT firm Nagarro is the latest sign that Indian IT companies are…