WNS Holdings, which operates in the outsourcing of technology services, is said to be up for sale and has already received expressions of interest, according to well-informed sources. The company, which currently has a market value of $2.8bn, has mandated JPMorgan Chase teams to assist in reviewing these expressions of interest. In addition to Capgemini, the suitors would include several competitors operating in the IT services sector, the sources say, speaking on condition of anonymity due to the confidentiality of the discussions.

 If negotiations are successful, an agreement could be reached in the next few weeks. Following this news, WNS shares jumped over 8.3% by close on Tuesday, to $66.59. WNS, Capgemini and JPMorgan declined to comment.

Founded in Mumbai in 1996 by British Airways to manage the airline's back-office technology operations, WNS became an independent entity in 2002, when Warburg Pincus acquired a majority stake. Headed by IT services industry veteran Keshav Murugesh, the company now offers business process outsourcing and data analysis services. Its customers include major corporations such as Coca-Cola, T-Mobile and United Airlines.

WNS operates in a competitive sector against heavyweights such as Cognizant and Genpact, which rely on large teams of developers based in low-cost countries, such as India, to carry out software development and application maintenance assignments. Most recently, WNS strengthened its positioning in artificial intelligence with the acquisition of Kipi.ai, a Houston-based company specializing in AI and analytics services.

For the quarter ended December 31, WNS reported sales of $333m, up from $326.2m a year earlier, while net income came in at $48.6m, up from $41.5m a year earlier. Since the publication of these results in line with expectations - after six consecutive quarters of disappointment - WNS shares have rien by nearly 30%.

Capgemini in a bad way

Conversely, Capgemini has disappointed of late, which has sent its share price down 12% YTD. The stock has even lost a third of its value in the space of a year.

"Capgemini is a decent, well-managed company, but it operates in a tough end market," says Jefferies analyst Charles Brennan. "The valuation is undemanding, but in the absence of growth, it is unlikely that the shares will rise again",he says, who recommends his clients to hold the stock, yesterday reducing its target price from €187 to €150.