Coforge to acquire Encora in $2.35 billion AI services deal

Coforge buying Encora is one of the clearest examples yet of how AI is reorganizing the global IT‑services ladder. The combined firm expects to be a $2.5 billion "tech services powerhouse" with roughly $2 billion of that coming from AI‑led engineering, data and cloud services by FY27, and Encora brings one of the first composable agentic AI platforms (AIVA) plus deep partnerships with AWS, Microsoft, Google and Snowflake.([reuters.com](https://www.reuters.com/world/india/indias-coforge-acquire-us-based-encora-235-billion-deal-2025-12-26/)) Rather than just sprinkling AI into legacy outsourcing, Coforge is effectively buying a new AI‑native core and wrapping its existing customer base around it.

For the race to AGI, this is about distribution and industrialization. Frontier labs can only build so many vertical solutions themselves; they depend on large integrators to translate raw models into regulated, production‑grade systems in healthcare, financial services and industrial software. Encora already sells into Fortune 1000 and digital natives, and Coforge’s North American revenue is set to jump about 50%, with 3,100+ Latin American engineers giving it a strong near‑shore delivery network.([investing.com](https://www.investing.com/news/company-news/coforge-to-acquire-ainative-firm-encora-for-235-billion-93CH-4423060?utm_source=openai)) As more of the world’s application surface area is re‑written by AI‑focused service firms, it becomes easier to plug in newer, more capable models—including eventual AGI‑class systems—without re‑architecting everything from scratch.