Cognizant Tech, Genpact, Infosys and Wipro – Press Releases | Stock Market News & Stocks to Watch from StraightStocks

Cognizant Tech, Genpact, Infosys and Wipro – Press Releases

Source: http://www.zacks.com/stock/news/19070/Cognizant+Tech%2C+Genpact%2C+Infosys+and+Wipro+-+Press+Releases
Posted on Tuesday, April 14th, 2009 | In Market Commentary, Stocks to Watch

Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -

For Immediate Release

Chicago, IL – April 14, 2009 – Zacks.com announces the latest Industry Outlook. Today’s outlook from Zacks Equity Research analyst Abdul Saleh discusses the Business Process Outsourcing sector. Highlighted stocks include: Cognizant Tech (CTSH), Genpact (G), Infosys (INFY) and Wipro (WIT).

Here is the latest on the Business Process Outsourcing (BPO) sector:

Among the major players in the IT Services sector, the percentage of total revenues derived from the financial services vertical is split between Cognizant Tech (CTSH) and Genpact (G) at roughly 45%, 43% for Tata Consultancy Services (TCS), 35% for Infosys (INFY) and approx. 25% for Wipro (WIT).

Given that a major portion of this exposure (more for the application outsourcing firms and less for the BPO firms) can potentially come from discretionary software development and other projects, the concerns raised about the negative impact of further tightening of bank IT budgets in 2009 is justifiable. The attempts by the Indian IT outsourcers to mitigate these concerns by disclosing the revenue mix from the investment banking sector compared to the more secure insurance or commercial banking sectors have been met with tepid responses so far. The differentiation has not gained much ground as the contagion seems to have spread to every corner of the financial services vertical.

While Infosys, Cognizant, TCS, Wipro and most other Indian vendors have alluded to the negative impact of a weak financial services sector, most of these companies after having posted somewhat strong sequential growth rates in their financial services verticals in Q2/Q3:FY2008, have began to falter. The current growth rate expectations have come down considerably since late-2008.

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