Coforge acquires AI firm Encora in $2.35 billion all-stock deal

This is one of the clearest signs yet that traditional IT services firms are reorganizing themselves around AI-native engineering at scale. By buying Encora, Coforge is not just adding headcount; it is effectively purchasing a pre-built AI product-engineering franchise with deep experience in agentic systems, data platforms, and cloud-native delivery. The combined $2.5 billion revenue ambition anchored in AI-led work tells you where large enterprise budgets are actually going: not just to frontier labs, but to the services shops that can wire those models into production software and legacy systems.([coforge.com](https://www.coforge.com/who-we-are/newsroom/press-release/coforge-to-acquire-encora.-reaffirms-intent-to-be-the-leading-ai-driven-engineering-firm-for-the-new-era?utm_source=openai))

For the race to AGI, this kind of consolidation matters because it determines who controls the application layer where advanced models will be deployed and fine‑tuned on proprietary data. A stronger, more AI-specialized Coforge competing with Accenture, TCS, and Infosys for global transformation deals means more capital and talent flowing into building robust agentic workflows on top of foundation models, especially in regulated sectors like healthcare and financial services. That increases the surface area where increasingly capable models can be tested, refined, and scaled on real-world problems, tightening the feedback loop between research and deployment.([reuters.com](https://www.reuters.com/world/india/indias-coforge-acquire-us-based-encora-235-billion-deal-2025-12-26/))

There is also a geopolitical angle: Coforge’s enlarged Latin American and U.S. footprint gives India-based engineering talent more direct leverage in the Western AI stack. As more mid-tier IT firms follow this template, expect a denser ecosystem of AI service providers feeding data, use cases, and safety constraints back into the frontier-model providers.