Indian Outsourcers: Profits To Be Hit By IT Downturn
The Indian IT outsourcing companies are going to see a hit to earnings from the sagging global economy, Pacific Crest’s Kanchana Vydianathan asserted this morning. While still generally bullish on the sector, she cut estimates this morning for Satyam (SAY), Wipro (WIT), Patni (PTI), Infosys (INFY), Tata Consultancy and Cognizant (CTSH).
Vydianathan offered six factors affecting her revised view of the sector:
- “Uncertainty” in the banking and financial services industry.
- Potential slowdown in Europe and in other industries.
- Poor visibility for demand.