Indian IT players look at capital allocation models of foreign firms

Accenture and IBM conduct share repurchase every year as part of their plans to return back free cash to shareholders

Indian IT services players are increasingly emulating the capital allocation models of global technology majors such as Accenture and IBM for their regular share repurchase initiatives.

In this financial year, while Tata Consultancy Services (TCS) and HCL Technologies (HCL) have already announced share buybacks for the second consecutive year, there are reports suggesting an announcement of such repurchase plans of Infosys in its upcoming board meet on January 11. “We have seen Accenture and IBM returning their excess cash flow to shareholders. That’s what, the IT industry is trying to do (here). This is the most tax-friendly way of returning back