67 WALL STREET, New York - December 4, 2012 - The Wall Street Transcript has just published its Business and Application Software Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Application Software Consolidation Activity - Cloud Computing and SaaS Trends - Health Care Transition to ICD-10 - Outsourcing and Offshoring Trends
Companies include: Wipro Ltd. (WIT), Syntel Inc. (SYNT), Genpact Ltd. (G), Exlservice Holdings, Inc. (EXLS), WNS (Holdings) Ltd. (WNS), Convergys Corporation (CVG), TeleTech Holdings Inc. (TTEC), Cognizant Technology Solutions (CTSH), General Electric Co. (GE) and many others.
In the following excerpt from the Business and Application Software Report, the number one earnings estimator in the IT services industry as ranked by Financial Times/Starmine discusses the outlook for the sector for investors:
TWST: Would you begin with a brief introduction to your coverage of the business services sector, including some of the specific names you follow?
Mr. Hemrajani: I cover India as a generalist, and within that, I cover offshore IT services and business process outsourcing, BPO, services - companies like Wipro (WIT), Infosys (INFY), Syntel (SYNT), Genpact (G), Exlservice Holdings (EXLS) and WNS (Holdings) (WNS). Additionally, I also cover some of the U.S.-based voice BPOs, like Convergys (CVG) and TeleTech (TTEC).
TWST: Which customer end markets are currently exhibiting the most robust demand for the kinds of business services your companies offer? And which companies do you believe are particularly well positioned to provide those services?
Mr. Hemrajani: From an end-market perspective, the services that seem to be the most in demand are business process management services, business analytics and infrastructure services, and of late, there has been a noticeable pickup in cloud-related services. We currently favor the offshore BPO companies, like Genpact, Exlservice and WNS (Holdings), and we have an "outperform" rating on all three given their expertise in business process management services and analytics.
Additionally, they have very low exposure to discretionary projects; cater to strong demand for BPO services, especially in F&A and procurement; benefit from the continued secular trend of delivery mix shifting offshore; have high recurring revenue stream; and their contracts tend to be long-term, multiyear in nature.
Over the last couple of years, we have seen a pickup...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.