In a significant move in the IT services sector, French multinational corporation Capgemini SE is set to acquire US-listed IT outsourcing company WNS Holdings for $3.3 billion in an all-cash deal. This acquisition, reported by Bloomberg on July 7, is primarily aimed at expanding Capgemini’s artificial intelligence (AI) operations. Capgemini reportedly outbid rivals, securing WNS for $76.50 per share, which represents a substantial 28 percent premium over WNS’s average price in the preceding 90 days and a 17 percent premium to its closing price on July 3, excluding WNS’s financial debt. The deal, expected to close by the end of 2025, is projected to boost Capgemini’s earnings per share by approximately 4 percent on a normalized basis in 2026, and up to 7% by 2027, also immediately boosting revenue growth and margins. Following the announcement, Capgemini’s shares experienced a decline, falling around 4 to 5.6 percent, reaching their lowest price in over two months, reflecting investor wariness regarding the short-term balance sheet impact and long-term AI risks.

The acquisition underscores a broader trend of increased AI spending by IT services companies, with Capgemini being the latest, following recent moves by companies like Accenture Plc. The integration of WNS will enable Capgemini to establish a dedicated consulting business service focused on assisting enterprises in enhancing their processes and cost efficiency through the application of generative AI and agentic AI. WNS, led by CEO Keshav Murugesh, is an Indian-origin business process management (BPM) firm serving over 600 clients, including major entities like Coca-Cola, United Airlines, and T-Mobile, across 13 countries. Its services encompass business process outsourcing (BPO) and data analytics. For the fiscal year 2025, WNS reported revenues of $1.31 billion, a slight decline of about 0.6 percent year-on-year, with an operating margin of 18.7 percent. The company has over 64,000 employees operating from 64 delivery centers. WNS CEO Keshav Murugesh emphasized that this partnership aims to shift from "automation to autonomy" for clients, potentially cutting operating costs by as much as 40 percent. While Morgan Stanley analysts noted that WNS is relatively small to dramatically impact Capgemini’s approximate $25 billion revenue, it will add around 19 percent to Capgemini's headcount, and AI advancements could potentially reduce the people-intensive nature of the BPO sector, leading to increased competition.

In the political landscape, entrepreneur Elon Musk has announced the formation of the "America Party," an uncommon third front in the United States' polarized political system. Musk, who had previously supported both Democrats and Republicans, stated on X on July 5 that he believes neither established party effectively addresses government overspending and bureaucratic inefficiency. He conducted a poll among his 228 million followers, with approximately 65 percent voting in favor of a new party, leading to his declaration: "Today, the America Party is formed to give you back your freedom." This move was met with swift criticism from President Trump, who on Truth Social called it "ridiculous" and predicted "complete and total disruption and chaos," also hinting at retaliatory measures against Musk's companies. Musk dismissed the criticism. The "America Party" currently lacks formal registration with the Federal Election Commission (FEC), and gaining ballot access across various states is expected to be a significant challenge.

Meanwhile, in India's financial and e-commerce sectors, the Bombay High Court has provided relief to Go Digit General Insurance by setting aside a Rs 170 crore tax demand. The demand included Rs 154.8 crore in Goods and Services Tax (GST) and Rs 15.48 crore in penalties for the period spanning July 2017 to March 2022. The court's decision was based on clarifying circulars issued by the GST Council regarding this issue, directing tax authorities to review the demand within three months. Go Digit, a Fairfax-backed insurer, referred to this as an "industry-wide issue" and is evaluating the legal implications. This reprieve comes as Go Digit reported strong financials, with a Q4 FY25 net profit of Rs 116 crore (up 119% year-on-year) and an FY25 net profit of Rs 424 crore (nearly tripling year-on-year), alongside a gross written premium of Rs 10,282 crore for FY25. This pause offers crucial breathing room for the insurer as it continues its growth trajectory.

In the quick commerce segment, Amazon's "Amazon Now" service has expanded its reach to several pincodes in Delhi, following its launch in Bengaluru in June. The e-commerce giant plans to scale the service across these two major cities over the next few months before rolling it out to other parts of the country. This expansion intensifies competition in India's rapidly growing quick commerce market, which has seen aggressive growth from players such as Zomato-owned Blinkit, Swiggy's Instamart, Zepto, BigBasket, Flipkart Minutes, and Reliance’s JioMart.

Furthermore, a new "deep tech gold rush" is inspiring a notable shift in India's academic landscape, with top technology professors increasingly transitioning from classrooms to co-founder roles in startups. Faculty from prestigious institutions like IISc, IITs, IIITs, and BITS Pilani are launching startups at a rate of 20-30 percent year over year. This trend is fueled by the success stories of ventures like Ather Energy and Agnikul Cosmos, which demonstrate the commercial viability of deep technological research. Investors are actively seeking out these professor-led deep tech ventures, with funds like Bharat Innovation Fund already backing numerous such startups. Professors, such as Manoj Gopalkrishnan from IIT Bombay (who launched Algorithmic Biologics) and Satya Chakravarthy from IIT Madras (who has co-founded six deep tech startups), bring invaluable technical expertise and intellectual property, positioning their ventures as strong contenders in the global market. The growing support from campus incubators is also playing a crucial role in enabling these academics to take the entrepreneurial leap.