Earnings season came to an end this week for the outsourcing group. Cognizant reported solid results and maintained 2012 guidance. The results ended the season on an up note. As we cross through the mid point of the year (2012), we turn our attention to 2013 prospects. The demand environment for the space remains dependent on the macro economic outlook, which will impact second half of 2012/2013 forecasts. A further worsening of the macro environment could lead to wide spread price declines and potentially cancellations. Stability at the macro level could mean that pent up demand is realized. We will be looking for more color on the outlook in the up coming months. Our BUY-rated names are IBM, Accenture, Cognizant, Syntel, Virtusa, Genpact, WNS, and EXLService.
For more information, please contact:
Joseph D. Foresi
617-557-2972
