Shares of IT outsourcing services provider Cognizant (CTSH) are trading modestly lower, despite a better-than-expected Q4 earnings report this morning.
FORBES: Cognizant Slips Despite Strong Q4; 2011 View Tops Street Estimates
Last June it signed a deal with Microsoft and an arm of the Chinese government to create a software joint venture that will supply IT outsourcing services and employ 5, 000 people outside Beijing.
Last June it signed a deal with Microsoft (nasdaq: MSFT - news - people ) and an arm of the Chinese government to create a software joint venture that will supply IT outsourcing services and employ 5, 000 people outside Beijing.
Note that our definition of the global tech market in this report includes business and government purchases of computer equipment, communications equipment, software, IT consulting services, and IT outsourcing and hardware maintenance services, but does not include purchases of telecommunications services.
FORBES: Global Tech Market To Grow By 5.4% In 2013, 6.7% In 2014
Our definition of the IT market included business and government purchases of computer and communications equipment, software, and IT consulting and outsourcing services it did not include their purchases of telecommunications services, which are declining in the US and growing slowly globally.
FORBES: Tech Market Forecast Awaits Federal Debt Ceiling Outcome
It offers outsourcing services to clients interested in developing credit scoring systems as well as selling software for a client to use in-house.
FORBES: Predicting the Path Out of Poverty: Microfinance & Credit Risk Analysis
In recent sessions, some Street analysts have turned cautious on the IT outsourcing and services group, in particular concerned about slowing demand from Europe.
Large upfront investments can be problematic for the company providing outsourcing services because it usually means that these long-term deals don't turn profitable until years into the contract.
The service providers also expect cloud services to grow faster than traditional IT outsourcing, especially in the US market.
Technology Services revenue was flat year over year, Application and Business Services revenue grew 1% and IT Outsourcing revenue declined 3% year over year.
ENGADGET: HP cuts 27,000 jobs, profit tumbles 31 percent in Q2
Technology Services revenue was down 1% year over year, Application and Business Services revenue was flat, and IT Outsourcing revenue declined 6% year over year.
ENGADGET: HP exceeds Q3 expectations: rakes $29.7 billion in revenue, still posts a loss
Indian outsourcing firms argue that using their services is also beneficial because it increases the layers of scrutiny.
Outsourcing company Sutherland Global Services has tested Asterisk in 400-person call centers, finding it cuts telephone costs by two-thirds.
Illig co-founded heath IT provider Cerner, which benefitted this week on Wall Street expectations that its combination of tech, outsourcing services and consulting will bring steady profits for the foreseeable future.
FORBES: Who Got Rich This Week: An Iranian Clothing Magnate, A Nebraska Swashbuckler and More
All the firms offer services from high-end businesses like IT consulting to low-end management of servers and business process outsourcing.
应用推荐