Joseph D. Foresi
Positioning In New Markets Important Differentiator Emerging markets continue to be a source of growth for IT spending. IT spending is expected to be up 1% for the U.S. in 2012, but down ~5% for Europe. The prospects for the emerging markets are comparatively much better. China is expected to lead the way with ~11% …
Joseph D. Foresi
Back to Market Analysis home Our thoughts: We are warming up to VanceInfo at present levels. Our confidence in the margin outlook is improving as inflation moderates. No company is immune to a macro economic slow down. Vance has a historically executed through difficult economic times, has little exposure to Europe, and is naturally conservative …
Joseph D. Foresi
Key Points 1. India Survey Shows Expectation for Rupee to fall to 58 INR/USD (6/4/12). A ING Vysya survey of 220 organization (440 respondents) has the majority expecting the currency to fall as low as 58 INR/USD. The INR (Rupee) has depreciated 5.7% on average this quarter to 53.6 from 50.7. A 1% move has …
Joseph D. Foresi
Industry Report Consulting and Global Outsourcing Nothing is Immune from Macro, But BPO Makes Sense Business Trends Remain Steady, Healthy KEY POINTS: BPO demand trends remain healthy, positive. Channel checks confirm that demand for BPO remains healthy thus far in the June quarter. Customer conversation continue to be productive. Sales cycle times remain static (6 to …
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, …
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
Back to Market Analysis home ADP Looking to Innovate. Interest Rates Continue to be a Drag. INVESTMENT CONCLUSION:We attended the ADP analyst day held in NYC today. Our main takeaways: business is overall fundamentally sound (Europe still difficult), ADP is focused on innovation & improving its technology platforms, the current interest rate environment should continue …
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
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 …
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. …
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