AllThingsD » Wipro

Outsourcers Wrestle With a Rebound

Amol Sharma — Tue, 18 May 2010 07:00:27 +0000

India’s technology-outsourcing companies, the poster children of the country’s services boom in the last decade, are bouncing back from their first serious slump.

The largest Indian tech firms, including Tata Consultancy Services Ltd. (TCS.NS), Infosys Technologies Ltd. (INFY) and Wipro Ltd. (WIT), all reported strong financial results in recent weeks, benefiting from a global uptick in spending on technology services by businesses such as banks and insurance companies and renewed interest in outsourcing as a cost-cutting measure.

The turn of events marks a reversal from a year ago, when Indian firms were reeling from a steep drop in orders for software services. But the tech-services sector differs now from the Indian firms’ boom years of 2003 to 2007, and new hurdles have arisen.

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Trouble Looms for Indian IT Outsourcers

Eric Savitz — Mon, 02 Mar 2009 18:03:53 +0000

It’s a rough morning for the Indian IT outsourcing sector, which has been hit hard by a highly negative report from Wachovia analyst Edward Caso.

Caso says the group is likely to take another leg down, forecasting that April conference call season will see most of the companies issue guidance below Street expectations. He writes that “demand remains lackluster and decision-making slow.” Customers budgets are down 10-20 percent this year, he contends, but with many operating on a month-to-month basis and focused solely on cutting costs. Caso writes that he is hearing pricing has come down close to 10 percent, and that existing contracts are being repriced. He also says the sector is seeing increasing competition for deals from Accenture (ACN) and IBM (IBM).

Caso cut his ratings today on Cognizant (CTSH), Wipro (WIT), Infosys (INFY) and Syntel (SYNT) to Underperform from Market Perform. He also reduced EPS estimates for all four companies. Caso said the stocks could see another 15-30 percent decline from Friday’s close.

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Infosys, Wipro Get Bomb Threats

Eric Savitz — Mon, 05 Jan 2009 18:44:42 +0000

Six tech companies with offices in Bangalore, India, have received emailed bomb threats, according to IDG News Service. Among the threatened companies were Indian IT outsourcers Infosys (INFY) and Wipro (WIT). The threat reportedly came from an emailer in Bangalore, according to police officials cited by IDG.

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Indian Outsourcers: Profits To Be Hit By IT Downturn

Eric Savitz — Fri, 03 Oct 2008 17:05:47 +0000

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.

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