Joseph D. Foresi
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 …
Joseph D. Foresi
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 …
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
Back to Market Analysis home Our Thoughts: Wipro reported quarterly results roughly in line with guidance. Volume growth of 0.8% was below peers with pricing down 1.7%, roughly in line with peers. Wipro guided to -1% to +1% sequential growth in the September quarter. We look to the conference call for more information on the …
Joseph D. Foresi
Back to Market Analysis home Syntel fell short of revenue expectations and lowered annual revenue guidance. The demand environment remains challenging. However, earnings results continue to impress albeit with some help from currency. Our takeaway from the recent impressive margins is that Syntel has the unique ability to protect earnings during a slow down like …
Joseph D. Foresi
Back to Market Analysis home Earnings season has officially kicked off for the outsourcing group. Investors first taste were two conflicting earnings reports by Infosys and TCS. We agree that TCS’ solid results would imply that Infosys has company specific challenges. However, the macro economic environment remains challenging for both. The macro doesn’t discriminate. There …
Joseph D. Foresi
Back to Market Analysis home Infosys reported results below expectations and lowered guidance. The company continues to battle a soft economic backdrop, execution risk derived from company specific changes, and an industry leading margin profile creating a potential barrier to growth. The comparatively better results of a competitor announced the same day imply that perhaps …
Joseph D. Foresi
Back to Market Analysis home We recently caught up with the management of EXLService. Our takeaways: demand for BPO remains healthy, currency crosswinds should offset each other, and valuation remains compelling at current levels. On the demand front, there has not been a slowdown in BPO deal activity or an elongation of the sales cycle. …
Joseph D. Foresi
Back to Market Analysis home 1. Cognizant Extends Deal with ING U.S. (06/14/12). The deal was expanded to $330 mn/7 yrs. CTSH will hire 1,000 ING U.S. employees. Every little bit counts in a challenging 2012 environment. 2. Infosys Delays Hiring Process (06/18/12). Infosys delayed the completion of the hiring of entry-level employees (28K campus …
Joseph D. Foresi
Back to Market Analysis home We recently caught up with the management of EXLService. Our takeaways: demand for BPO remains healthy, currency crosswinds should offset each other, and valuation remains compelling at current levels. On the demand front, there has not been a slowdown in BPO deal activity or an elongation of the sales cycle. …
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