Research & Insight

Monthly archives: May, 2012

Top 10 Takeaways: Is the Market Pricing Everything? – Market Analysis

Joseph D. Foresi

Top 10 Takeaways: Is the Market Pricing Everything In? Data Points For Your Investment Mosaic 1. Gartner reports worldwide IT outsourcing grew 8% in 2011 to $246.6 bn from $228.7 bn (5/21/12). Vendors with cloud based offerings and Indian providers were cited as the fastest areas of growth. Top 5 providers by revenue were IBM, …

Industry Report Consulting and Global Outsourcing – Market Analysis

Joseph D. Foresi

Top 10 Takeaways: Intra Quarter Channel Checks Key Data Points for Your Investment Mosaic 1. Syntel optimistic about prospects (5/14/12). Takeaways: demand environment healthy, SYNT taking market share due to client service, & earnings protection from margin flexibility exists. 2. VanceInfo reports healthy results raising top line annual guidance, but EPS guidance unchanged (5/15/12). Takeaways: …

Top 10 Takeaways: CTSH’s Guidance Revives Macro Concern Data Point’s for Your Investment Mosaic – Market Analysis

Joseph D. Foresi

1. Cognizant lowers annual guidance (5/7/12) reviving Macro concerns. Takeaway: discretionary spending in Financial Services (capital markets) and pharma slow to start 2012. CTSH didn’t see the acceleration it expected in April. Hard to tell if there is another revision coming, but CTSH’s business model hasn’t changed. They have earned the benefit of the doubt. …

Taking IT Offshore Weekly: Macro Scare Is In the Air 2012 Off to Less than Optimal Start – Market Analysis

Joseph D. Foresi

IT services was in focus this week. Investor’s began the week on a sour note with Cognizant lowering annual guidance three months into the year. The adjustment comes on the heals of some lackluster March performances and mediocre June guidance. The combination of data points leads us to believe that a “Macro Scare Is In …

Taking IT Offshore" Weekly: BPO takes Center Stage – Market Analysis

Joseph D. Foresi

The BPO demand environment took center stage this week as Genpact and EXLService reported results. Our takeaway was that the demand environment for BPO is healthy. There are a number of data points to confirm this. Solid quarterly results from the BPO players. Positive commentary regarding BPO provided by larger IT services firms and outsourcing …

1Q12 First Take-In Line Qtr; Guidance Lowered Resetting Bar Increases Potential for Performance – Market Analysis

Joseph D. Foresi

Our Thoughts: Cognizant reported in-line March qtr results, but gave June guidance below expectations and lowered annual guidance. The reason for the lowered guidance is due to a slowdown in discretionary spending in financial services and pharma. The current stock price reaction (down 18% as of this writing) is overdone, in our opinion. A murky …

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