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 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
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
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. …
Joseph D. Foresi
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 …
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 …
Joseph D. Foresi
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 …
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
Like a pre-storm sky, a look at the investments outsourcing solutions providers are currently undertaking presents evidence of tremendous change over the next five years. They’re mapping out a new course, and buyers of outsourcing services need to understand where providers are headed so they can make informed decisions. Outsourcing Center asked 12 leading ITO …
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