Joseph D. Foresi
Back to Market Analysis home The outsourcing space is facing two factors heading into 2013. The first is the macro. The space is at a critical juncture with price declines taking place, but contained to specific verticals (capital markets). If the macro remains stable, then the problem is contained, but if it deteriorates we could …
Joseph D. Foresi
Back to Market Analysis home Earnings season came to an end this week for the outsourcing group. Cognizant reported solid results and maintained 2012 guidance. The results ended the season on an up note. As we cross through the mid point of the year (2012), we turn our attention to 2013 prospects. The demand environment …
Joseph D. Foresi
Back to Market Analysis home KPMG held its 2Q12 Global Sourcing Advisory Pulse Survey. The outsourcing business is turning into a winners versus losers game, as customers are looking for solutions vs. labor arbitrage. Demand for vertical BPO is healthy particularly in F&A. The pricing environment eased, but the vendors’ ability to increase profitability remains …
Joseph D. Foresi
Crucial June Results Key to 2012 Success KEY POINT: Our main takeaway this week was our upgrade of WNS to BUY due to a desirable entry point. We think the catalysts are in place (large contract ramp, salesforce increases, & healthy demand) to drive revenue growth back to industry levels which should result in multiple …
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: …
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 …
Outsourcing Center, Patti Putnicki, Business Writer
The past few years have not been kind to the retail industry. Sluggish economies, shrinking margins and a more cost-conscious consumer have taken their proverbial toll. “We’ve seen retail sales increase by 5 percent to 6 percent, yet profits declined from 3.5 percent to 2 percent. So, even though stores are selling more, they’re making …
Outsourcing Center, Bruce McCracken, Business Writer
Business process as a service (BPaaS) is emerging to be a BPO game-changer reminiscent of Software as a Service (SaaS) a decade ago. Specifically, BPaaS is adding arrows to organizations’ outsourcing quiver in how they approach their finance and accounting and other back-office functions. “Businesses that leverage traditional outsourcing deals are looking to move off …
Outsourcing Center, Kathleen Goolsby, Senior Writer
Outsourcing Center asked leading outsourcing service providers about their predictions as to the biggest changes that will impact outsourcing buyers over the next five years. Their answers clearly point to a need for buyers to alter their thinking about how, when, and why they engage with providers of outsourced services. Extreme performance requires elasticity Joanne …
Outsourcing Center, Kathleen Goolsby, Senior Writer
New delivery models, new pricing models, service providers’ new marketing strategies, moving up the value chain to intellectual arbitrage, new technologies, real-time customer interaction, globalization, and new standards and regulations – these factors set the stage for risks for buyers of outsourcing services in the next two to five years. (Read Forces of Change Shaping …
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