Two Japanese IT services providers are individually in talks to acquire a controlling stake in Indian outsourcing provider Patni Computer Systems, according to Indian newspaper The Economic Times.

Also linked to the Mumbai-headquartered company is Indian engineering corporation Larsen & Toubro, which already operates an IT services division.

The newspaper cites unnamed sources in claiming that the company’s founder, Narendra Patni, is looking to divest part of his stake, as is global private equity firm General Atlantic.

It is likely that both Japanese companies would use Patni’s resources to boost their European businesses were the bids successful, as Japanese demand for offshore services is typically served from China.

Last week, Patni reported a 122% increase in net income, up to $15 million, on revenues that grew 10% year-on-year to $156.7 million. The company’s shares rose 7% following today’s revelations.

Patni was founded in 1978. During its early years, the company employed the founders of Infosys, which went on to become India’s second largest IT company.