With the United States market still in slump, businesses project difficulties in profit increase in the next 7 years. Job cuts continue in the US and the rate of job creation of 25 per year is not sufficient to offset job losses in the next 5 years. On the other side of the world, Indian outsourcing firms show an opposite trend. Global IT service providers such as Infosys which provides technical consulting, design and development of business solutions have been aggressively increasing their workforce. Last week, the company reported that in the second quarter it has hired 6,069 people offsetting the 4,521 employees it laid off in the same quarter. Tata Consultancy Service is also bullishly hiring with plans of hiring 25,000 people worldwide for this year 2009 and 90%

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Ness Technologies (NSTC) is a global provider of IT services. The company recently announced a multi-million dollar contract win from Latin American government. Under this contract, Ness will provide Control command and Control system to the Latin American Government.

Although this contract is expected to positively influence the revenue stream of the company going forward, but there is no clear indication about the commencement of cash flow from it. We do not expect this contract win to provide immediate support to the company's downward moving revenue flow.

This apart, Ness faces intense competition from many established firms such as Accenture (ACN), IBM (IBM), Hewlett Packard (HPQ), Wipro (WIT), Cognizant Technology (CTSH), Computer Sciences Corp. (CSC), HCL, Electronic Data Systems, GlobalLogic, Virtusa (VRTU), Persistent and Symphony Services, which is making it tough for the company to gain additional market share. The

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Cognizant Technology: A Bottom of the Bearish Trend?Cognizant Technology Solutions Corp. (CTSH, Hold) reported its fiscal Q1 results yesterday. Q1 revenues of $746 million were ahead of our $734 million estimate, although down 1% q/q (but flat assuming constant currency). Non-GAAP gross margin of 20.2% were in-line with guidance, while GAAP EPS of $0.38 were ahead of our and consensus estimates by a penny.Overall, the company posted solid results across all verticals, although the banking vertical (with nearly 30% of revenues) saw a 2% sequential decline in revenues.Cognizant Technology is a leading provider of custom information technology (IT) for Fortune 1000 customers. The company guided Q2 revenues higher to $760 million with GAAP EPS of $0.37 and reiterated FY2009 revenues of $3.1 billion. This compares to our current Q2 revenue estimate of $730 million and GAAP EPS of $0.36. The company's FY2009 ...