With the Accenture leading the pack, the numerous outsourcing companies released results following the end of the quarter. It was currency volatility, problems in Europe and attrition which were some of the major issues that were raised with the release of the results. The general flavor in the outsourcing space has been that business in outsourcing is steadily on the rise with the business process outsourcing and Information Technology outsourcing coming into a major play with the big winners being Indian companies, Tata Consultancy Services Ltd and HCL Technologies as well as company Xerox Inc. The management consulting, technology and outsourcing company, Accenture was the first of its peers to release results. The company reported 3Q Fiscal 2010 Results period ending. The accenture did not disappoint analysts after reporting higher than expected quarterly results, rising 8 percent in revenue compared to the previous year above analysts expectations. For the quarter, as the first of its Indian outsourcing peers, expectation was high for Infosys unfortunately the company failed to deliver.
The company’s CEO was quoted that while the global economic environment remains uncertain, they continue to see a greater demand for the services from their clients. The number of the economic and operational difficulties have affected the company’s performance bringing its results down to less than stellar. The Tata Consultancy Services came out with its own results inviting comparisons between the two companies. It did not help that TCS reported better than expected results, reporting a 21.3 percent rise in net profit to $394 million and a 6.4 percent sequential growth in dollar term revenue.
The IBM meanwhile disappointed markets posting increase in the revenues as compared to a year ago, although the company dis report a 9 percent increase in income. The IBM also reported a 19 percent fall in the value of the outsourcing contracts and a 12 percent fall in the values of servicing contracts. The India’s third biggest software services and outsourcing provider, Wipro Technologies released for its first fiscal quarter. The Wipro posted quarterly profits ahead of the analyst estimates reporting the growth of the 30.5 percent in net profit over the corresponding quarter a year ago. The company attributed the results to increase in demand for printing as well as outsourcing services. The net income of the company rose $227 million from $140 million.
REFERENCE:
http://www.blog.infinit-o.com/outsourcing-companies-checkin-results/
