Blackstone Group is acquiring a majority stake in Mphasis a provider of IT outsourcing services based in India in a deal worth as much as $1.1 billion, from Hewlett Packard Enterprises.

It is the asset manager’s single largest investment in India.

The deal, which is all-cash, reinforces the bullish outlook Blackstone has on the business of outsourcing, where clients from the west send IT jobs to nations like India to lower their costs.

This past December, Blackstone made the announcement it had purchased a minority stake in IBS Software based in India for just over $170 million.

Blackstone has bet that the IT industry in India will continue its growth in double-digits as the companies move to digital services, which are high margin to offset a pullback in the routine IT spending by their clients, one senior executive with the company said.

A senior director with Blackstone in India said the reason a strong commitment was made by the company to the IT sector in India is due to it being a sector that has delivered strong returns to not just Blackstone but other investors of PE in India.

The sector, added the director, is poised for solid growth, and especially in the field of digital services in which Mphasis excels,

The IT industry and the software services revenue in India will likely grow during the current fiscal year by between 10% and 12%, to up to $121 billion for the year beginning April 1.

In one of the largest M&A transactions in the outsourcing sector in India, Blackstone will be paying 430 rupees or $6.49 a share for a minimum of 84% of the 60.5% stake Hewlett Packard Enterprise has in Mphasis.

It made an offer of purchasing 26% in Mphasis from the public shareholders at Mphasis for 457.55 rupees per share as a means of complying with laws in India.

Depending upon the response to its open offer to the public investors, HPE could receive up to $825 million for its full stake, while the cost in the end to Blackstone would 70.7 billion rupees.

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