Thomas Victor

Outsourcing Grows as a Business Strategy

The IBM Amway deal is the other way around. Amway GMBH's computer work is being outsourced to IBM - IBM is not outsourcing anything to Amway.

Amway is the company that goes around door to door selling cleaning materials. I was thinking - what can Amway do for IBM??

But I agree that we will see increases in outsourcing, I think it will come due to desperation - as demand keeps falling, US companies will do anything to decrease costs

Infosys, Innovation and the Changing Face of IT

Frankly, the commercial value of these patents is not clear at all.

Lots of software patents are just commonsense and not worth anything.

As far as Infosys getting more into IP (intellectual property) goes, I'm more optimistic about INFY's mega banking software product 'Finacle'

May 28th: "BBVA, one of the top 15 banks in the world, will implement Finacle Universal Banking Solution.....As a strategic imperative, the bank decided to replace legacy solutions with a leading world-class banking solution."

That sounds very promising - there must be a lot of big banks around the world that need that kind of leap from old banking systems to state of the art systems.. and I'veseen a LOT of expensive failures - success at BBVA could be the start of something really big for Finacle.

Infosys Sees Some Customers Delaying Finalizing 2008 IT Budgets

From thestreet.com, "INFY..downgraded at Goldman Sachs to Neutral from Buy due to lower visibility, reduced growth outlook, and limited catalysts. See need for increased investor confidence in 2009 estimates, as well as potential impact of U.S. recession. Maintained $45 price target"

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