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: [...]
A Little More Light Shed on Changes – Some Heavy Lifting Coming INVESTMENT CONCLUSION: CSC reported quarterly results roughly in line with the preliminary announcement. Although most of the bad news appears to be built into the stock price from a sentiment perspective, the prospects for the company over the short term are still uncertain [...]
Being Prepared Can Increase Your Bottom Line Eighty percent of companies without well-conceived data protection and recovery strategies go out of business within two years of a major disaster. What do Hurricane Katrina, a burn-your-building-to-the-ground fire, and the great San Francisco earthquake have in common with employee turnover or a simple computer crash? Lots. All [...]
Strategies to Reduce Global Network Costs in a Rapidly Changing Environment The cost of an organization’s telecommunications network services (voice, data and wireless), typically accounts for three to six percent of overhead and can average more than two percent of total revenue. In addition, telecom network services spend is increasing. Industry forecasts predict that enterprise [...]
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. [...]
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 [...]
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 [...]
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 [...]
The reaction in the Cognizant’s stock yesterday was overdone, but that is something investors already knew. Short term investors are wondering is the guidance lowered enough. The answer lies in the strength of the macro, which we cannot predict. If the macro is not stable or doesn’t improve, it will impact more than Cognizant’s business [...]
We’ve all experienced it. The home that was once just perfect suddenly becomes uncomfortable. It’s too cramped for our expanding family; it’s too big for our emptying nest – one way or another, it just doesn’t “fit” with the way we’re living our lives now. We don’t want to change everything, so we opt for [...]
Although the concept of application optimization is not new, the way companies approach optimization is shifting. In the past, optimization, if addressed at all, was regarded as a one-time consulting service, handled by an unrelated, third-party vendor. Today, successful companies are taking a more holistic approach — working with a service provider who can deliver [...]
Insurance providers, laboring under legacy systems built up over decades, are in desperate need of systems transformation to compete for new customers and business in a rapidly evolving industry. But building a traditional business case for IT systems modernization, based upon the justification that consolidating aging and redundant legacy systems will reduce maintenance, support, upgrade [...]
This chart reflects the continued downward trend and compression in TDM voice for the period 1Q07-4Q11. Business wire-line providers continue to establish new price points forcing full-service providers to respond in order to protect share. Carriers are routinely contracting below .01/minute for this commodity service. Click here to download this chart
This chart reflects the broad range of pricing offered/contracted for the MPLS 1.5 port at various contract commitment levels. Pricing continues to decline in each 6 month time block for both the average price (represented by the linear regression line) and the price point across all commitment levels. Leveraged clients are typically able to contract [...]
This chart reflects the continued downward trend and compression in pricing for the period 1Q05 – 4Q11 despite the industry consolidation that has occurred during this same period. Both the average price and the low price (or price point) continue to decline. Leveraged clients are typically able to contract at the price point irrespective of [...]
WEBINAR ON DEMAND: Social Media: A Goldmine of Untapped Business Potential Social media is a gold-mine of insights about your customer’s expressed and unexpressed needs and preferences as well as their dislikes and dissatisfactions. Watch this educational webinar to learn how to leverage Social Media & Text Analytics to enhance revenues and market share through: [...]
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