The latest findings of the ‘Global Computing Services MarketWatch analysis service’ from consultants Datamonitor reveals that Indian IT service provides have outperformed their western counterparts in the year to date. Indian IT shares have rebounded from a slump in the middle of the year and strong third quarter performance has returned them to impressively positive territory.

“The share prices of the largest four India-based vendors (Tata Consultancy Services, Infosys, Wipro and Satyam) all increased by double-digit percentages, a feat that none of the largest five US service providers managed, and only one of the largest five European players, Capgemini, achieved”, said Patrick O’Brien Senior Analyst for Global Computing Services at Datamonitor.
 
“Our research has shown that overall shares in IT services companies have offered a poor return on investment in the first three quarters of the year, with overall increase in prices of less than 3%, far less than most of the capital markets’ indices,” he said.

Figures like these explain why western giants continue to circle the Indian IT services sector looking for M&A opportunities; but how long will it be before the situation is reversed?
Jim Chalmers