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Back to Market Analysis home Click on the Link below for additional details and important disclosures: https://baird.bluematrix.com/sellside/EmailDocViewer?encrypt=a38168f6-2ea1-40ad-ac7a-7d865bb211d5&mime=pdf&co=Baird Baird/Koning: Baird BPO Review: Offshore IT/BPO Services – March 18, 2013 Please click on the link above to access Baird’s bi-weekly BPO Review. Please feel free to distribute this publication within your organization. Back to Market Analysis home [...]
March 18, 2013 |
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Back to Market Analysis home The sprint is on until the end of 2012. Recent stock price movements look sustainable in the absence of 2013 visibility, which we don’t expect this quarter. Investors remain locked in their positions, “Playing Prevent Defense Until Year End”. The decision to trim positions at 52-week highs is the easy [...]
October 5, 2012 |
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Back to Market Analysis home Remain selective in IT Services, favoring CTSH/BPO providers, but would look to get more constructive around pullbacks in Neutral-rated stocks. CTSH is our best idea, given expectations for reaccelerating yoy revenue growth in Q4 (high historical correlation of growth acceleration and multiple expansion). Highlights from our recent trip to Oracle [...]
October 4, 2012 |
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Back to Market Analysis home Accenture set the tone for the outsourcing group reporting solid results and guidance. The key to the quarter was better than expected bookings ahead of expectations. The company’s bookings are unique given its favorable positioning in the market. We note bookings can be lumpy. We believe the demand environment is [...]
September 28, 2012 |
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Back to Market Analysis home INVESTMENT CONCLUSION: We maintain our NEUTRAL rating on Paychex following better than forecast first quarter results. Paychex lacks a immediate catalyst as new business formation remains muted and margins are held back by investments. There is the potential that the company loses market share to technology based vendors over the [...]
September 27, 2012 |
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Back to Market Analysis home View risk/reward as balanced, based on valuation – more constructive below $60. ACN reports FQ4 results on 9/27, and will provide initial F2013 guidance. We expect FQ4 results to be slightly above our/consensus estimates, largely due to management conservatism and somewhat stable trends. For F2013, we anticipate revenue and EPS [...]
September 17, 2012 |
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Back to Market Analysis home The market has moved up recently, implying the economy has improved. Although there may be small incremental gains, we are far from being out of the woods in our opinion. We are getting indications that demand is stable in the outsourcing group, but no indications of acceleration. The net result [...]
September 13, 2012 |
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Back to Market Analysis home INVESTMENT CONCLUSION: We caught up with BPO industry analysts NelsonHall. First half 2012, BPO deal conversion rates have been hampered by macro factors and risk aversion following a strong 2011, potentially leading to pent up demand. There is an increasing focus on domain expertise, which translates into a Race Up the Value [...]
August 28, 2012 |
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Back to Market Analysis home VanceInfo reported quarterly results roughly in line with expectations. FY12 revenue guidance was raised but FY12 EPS guidance was lowered as the company attempts to shift impacted employees to other projects as a result of cancellations with two large clients. Synergies of the merger with hiSoft include scale to compete [...]
August 24, 2012 |
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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 [...]
August 17, 2012 |
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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 [...]
August 13, 2012 |
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Back to Market Analysis home VanceInfo reported quarterly results roughly in line with expectations. FY12 revenue guidance was raised but FY12 EPS guidance was lowered as the company attempts to shift impacted employees to other projects as a result of cancellations with two large clients. Synergies of the merger with hiSoft include scale to compete [...]
August 10, 2012 |
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Back to Market Analysis home Our Thoughts: CSC reported results above expectations highlighted by improved margins. Management did not provide official FY13 guidance. In order to develop a creditable investment thesis, investors will need further color on the prospects for the company going forward. We look to the earnings call to provide that color. Other areas [...]
August 8, 2012 |
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Back to Market Analysis home Our Thoughts: Cognizant reported better than expected quarterly results and maintained guidance. The model showed some resilience this quarter which should be positively viewed by the market given concerns over the lowering of the guidance. We acknowledge that we are not out of the woods yet; however, Cognizant is a [...]
August 6, 2012 |
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Back to Market Analysis home Wipro reported IT Services results in line with expectations, but guidance fell short of estimates. Similar to Infosys, Wipro is caught in the perfect storm of facing organizational changes and a weakening demand backdrop. The sector decline has reached the stage of pricing discounts, which appear relegated to the areas [...]
July 27, 2012 |
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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 [...]
July 25, 2012 |
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