Ascendion grabs Nitor Infotech to match boom in client demand for GenAI

With a landgrab for talent in the artificial intelligence (AI) and generative AI (GenAI) space well and truly underway, customers of US-based Ascendion can look forward to broader access to GenAI solutions since the software engineering services company acquired India-based Nitor Infotech.

As we conduct our HFS Horizons briefings on the Generative Enterprise™, we hear that many service providers have identified acquisition as their short-term shortcut to meet client demand.

We expect a flurry of similar acquisitions as service providers scale up to meet client demand for GenAI-infused solutions

We expect firms with the right expertise to attract a premium as service providers prioritize scaling up their capabilities in AI in general and GenAI in particular. Accenture has set out to double its headcount in AI services to 80,000, while others—including TCS, Wipro, Cognizant, and IBM—have set ambitious training targets. The market will be supplied with hundreds of thousands of qualified GenAI experts by the end of the year if all the promises made in announcements to date are kept. But to keep up with more pressing near-term demand, we expect a flurry of acquisitions like Ascendion’s grab of Nitor Infotech.

Nitor Infotech is an independent software vendor boasting domain experts and a range of accelerators and frameworks for digitalization. The company adds 700 heads to Ascendion’s 6,000-plus associates and expertise in GenAI, which Ascendion plans to deploy on solutions to improve client productivity. Ascendion’s stated aim is to “build technology fueled by generative AI to elevate life.” Ascendion infused its A.AVA platform with AI from the start and has recently enhanced it with the latest GenAI tools, for example.

Nitor Infotech adds a GenAI-dedicated tech center of excellence and a software product engineering hub in Pune

Acquiring Nitor Infotech adds to the GenAI “fuel” Ascendion can apply for its customers. Nitor Infotech brings with it a dedicated tech center of excellence for GenAI. The center helps clients explore deep learning models, prompt engineering, reinforcement learning, and probabilistic programming. Nitor Infotech has 60 clients and has delivered AI and cloud engineering work for clients in healthcare, retail, and other sectors. That’s a decent match with Ascendion’s focus on health, retail, and supply chain tech.

The acquisition strengthens Ascendion’s global delivery capabilities, adding a software product engineering hub in Pune, India. Nitor Infotech will continue to operate under its existing brand as an Ascendion company.

The Bottom Line: Ascendion’s buy looks like a good fit, but as the GenAI gold rush gathers pace, enterprise leaders must be wary of the outcomes of hasty M&A deals.

This acquisition looks like a good fit for Ascendion and should bring the benefit of additional access to GenAI talent for its customers. As far as cultural fit is concerned, clients may be reassured that the leadership team at Ascendion is well-versed in working with businesses with headcounts in India. CEO Karthik Krishnamurthy spent 18 years at Cognizant, for example.

This purchase looks like a well-considered buy, but as this GenAI gold rush continues, we expect a few missteps. Enterprise leaders must be wary of engaging with the results of hasty M&A. Be prepared to ask for reassurances around cultural fit and business and tech integration to avoid falling victim to someone else’s rushed diligence.