Capgemini, the French IT services group, has held early-stage talks with Reliance Communications, of India, that could result in the first acquisition of a significant Western IT house by one of India's fast-growing competitors.

Times Online can reveal the French-based group has met with Reliance Communications, the technology and telecoms arm of Anil Ambani's Reliance ADAG group in recent months, sources said.

The initial discussions failed to make progress after the parties could not agree on a price.

The possible takeover of Capgemini emerged as the group acknowledged that the US sub-prime mortgage crisis that has wiped billions of dollars off banks' balance sheets could impact its own growth in the coming year.

The company made the forecast as it revealed full-year profits for 2007 rose from €293 million to €440 million (£327 million), which was in line with analysts expectations.

Capgemini said: “It is not inconceivable that the difficulties of the banking sector will end up spreading to the whole economy and reach our own disciplines.”

But Paul Hermelin, the chief executive of Capgemini, was upbeat, stating that organic growth for 2008 would reach towards the top of expectations.

It was rumoured last month that Capgemini had also held talks with Wipro, one of the largest Indian IT players.

Wipro denied the talks, although sources close to the Indian group say a move was mooted, internally at least, before it was deemed that a merger "was not viable".

Reliance Communication's interest confirms Mr Ambani’s hopes to build a significant IT business.

A move on Capgemini would give it access to a client base in continental Europe and catapult it among the world's top ten IT groups by market share.

Mr Ambani, India's second-richest man after his estranged brother Mukesh, has already suggested that he aims to be among the world's five biggest video games developers.

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