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Impact of M&As on Employment in the Indian Information Technology (IT) Industry

Author

Listed:
  • Amit Soni

    (University of Delhi)

  • Avinash Chandra

    (Capgemini)

  • Sumati Varma

    (University of Delhi)

Abstract

Mergers & Acquisitions (M&As) are an important feature of both domestic investment and global FDI. Post-liberalization, India has been an important contributor to both domestic and global M&As, led by the IT sector. This study attempts to investigate the impact of M&As on employment for Indian Information Technology (IT) firms for the period 2007–2015. The Indian IT sector has been a leader for the Indian economy, with its contribution to economic growth, exports and employment generation. However, there is a significant gap in studies examining the impact of M&As on employment in the IT sector. This study makes an important contribution as it attempts to fill that gap, using mixed-methods techniques for a study of both domestic and cross-border M&As. We combine multivariate regression analysis with qualitative techniques of content analysis and interviews for an in-depth view. The study finds that M&As had a positive influence on employee strength in the context of the Indian IT sector, for both domestic and cross-border deals. The study thus highlights the important policy prescription of M&As being a source of employment and growth, even during periods of slowdown in the global and domestic economy.

Suggested Citation

  • Amit Soni & Avinash Chandra & Sumati Varma, 2020. "Impact of M&As on Employment in the Indian Information Technology (IT) Industry," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 311-329, June.
    • Handle: RePEc:spr:ijlaec:v:63:y:2020:i:2:d:10.1007_s41027-020-00232-7
    DOI: 10.1007/s41027-020-00232-7
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    References listed on IDEAS

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    Cited by:

    1. Niti Bhasin & Amit Soni & Rabi Narayan Kar, 2021. "Do Institutional and Macroeconomic Factors Matter in IT companies M&As? Evidence from India," Business Perspectives and Research, , vol. 9(2), pages 286-305, May.

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    More about this item

    Keywords

    Mergers; Acquisitions; Employment; IT sector; Panel data models;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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