Thomas Victor

Indian Outsourcing Stocks: Beware The Stronger Rupee

Eric,

Dayanand is correct, no way that CTSH is not going to be impacted by rising Indian wages. The key thing is where is the army of the software developers located?

My pick now is ACN.

All of my meagre investment money is in INFY and WIT. Otherwise I would now buy Accenture (ACN). Look at it's P/E ratio. I'm an Indian with a US MBA and currently working in a large California IT shop. I have experience of both the top US mgmt consultants and offshore software companies INFY, HCL & Covansys. Our company has sporadically offshored to those three.

ACN is located at the top of the food chain in this situation. They already have the established elite top level US consultants. Their problem is to rapidly establish a high quality software factory in India, luring away stars from INFY, TCS etc. plus recruiting from campuses.

That seems easier for ACN to do than for, say INFY, to establish a Mgmt Consulting presence in the US, and EU. Similar to Mittal and Tata making deals with Arcelor and Corus who are higher up in the food chain maybe the Indian companies should buy out ACN

Thomas