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What: Shares of IT service provider iGate (Nasdaq: IGTE) have been on a steady uptrend since mid-afternoon, currently up 10%, after a Wall Street Journal report indicated that a consortium bid between iGate and private equity firm Apax Partners is currently the favorite for India's Patni Computers (NYSE: PTI).

So what: iGate shares nosedived 20% last week on news that it would pursue a majority stake in the considerably larger Patni Computer in India. Today's rally looks like a mixture of two things: optimism that iGate is leading the fight against juggernauts The Carlyle Group and Advent International to acquire a new revenue stream, and a possible technical rebound after last week's sharp sell-off.

Now what: iGate clearly feels that its best avenue to growth is to expand internationally, but plenty of question marks still remain, especially given how small the company is compared to competitors Infosys (Nasdaq: INFY) and Wipro (NYSE: WIT). Integration factors would be the No. 1 concern on my list, not to mention how the company will absorb financing a deal of this magnitude. Unless we get a confirmation on whether or not this consortium bid has won a stake in Patni, it's probably best to remain on the sidelines and await concrete facts.

Interested in more info on iGate? Add it to your watchlist.

Fool contributor Sean Williams does not own shares in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong.

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