On Sep 15, 2014, we issued an updated research report on Infosys Technologies Ltd (INFY), a leading provider of business consulting, technology, engineering and outsourcing services.
Infosys proclaims its expertise and core competence in consulting, IT services and business-process management. However, the company had been losing its edge recently, as reflected by the declining top and bottom lines, lower margins, high attrition and loss of businesses to competitors. To counter this sluggishness and reclaim the IT major’s lost glory, the company’s co-founder Narayana Murthy came out of his retirement in Jun 2013.
After Murthy’s return the company has witnessed an uptrend in its operational performance and deal wins. Infosys’ one major strength is its Global Delivery Model which enables an efficient development of its business solutions, designing of IT platforms from initiation to completion and conduction of ongoing maintenance process using its workforce on-site along with its development centers located in India and abroad. Further, Infosys intends to acquire companies or develop alliances that complement its core competencies. Recently, the company collaborated with SAP to develop new mobile applications for the retail industry so as to enhance the wireless communication between the consumer packaged goods (CPG) companies and sales representatives and merchandisers.
However, even after a string of measures taken by Murthy to retain the high performing employees, the significantly high attrition rates remain a concern for the company. In fiscal 2014, the company’s attrition rate (excluding subsidiaries) increased to 18.7%, compared with 16.3% in the prior fiscal year. Moreover, amid severe competition from other IT majors like Wipro Ltd. (WIT), the high attrition rates continue to pose serious challenges for Infosys, as the cost of training new individuals is significantly high for this Zacks Rank #3 (Hold) company.
Whether Murthy’s initiatives will be able to beat the odds and achieve the desired growth levels, only time will tell.
Some Other Stocks to Consider
Some better-ranked stocks that can be considered at the moment include GTT Communications, Inc. (GTT) and Luxoft Holding, Inc. (LXFT), both sporting a Zacks Rank #1 (Strong Buy).
On Sep 15, 2014, we issued an updated research report on Infosys Technologies Ltd (INFY), a leading provider of business consulting, technology, engineering and outsourcing services.
Infosys proclaims its expertise and core competence in consulting, IT services and business-process management. However, the company had been losing its edge recently, as reflected by the declining top and bottom lines, lower margins, high attrition and loss of businesses to competitors. To counter this sluggishness and reclaim the IT major’s lost glory, the company’s co-founder Narayana Murthy came out of his retirement in Jun 2013.
After Murthy’s return the company has witnessed an uptrend in its operational performance and deal wins. Infosys’ one major strength is its Global Delivery Model which enables an efficient development of its business solutions, designing of IT platforms from initiation to completion and conduction of ongoing maintenance process using its workforce on-site along with its development centers located in India and abroad. Further, Infosys intends to acquire companies or develop alliances that complement its core competencies. Recently, the company collaborated with SAP to develop new mobile applications for the retail industry so as to enhance the wireless communication between the consumer packaged goods (CPG) companies and sales representatives and merchandisers.
However, even after a string of measures taken by Murthy to retain the high performing employees, the significantly high attrition rates remain a concern for the company. In fiscal 2014, the company’s attrition rate (excluding subsidiaries) increased to 18.7%, compared with 16.3% in the prior fiscal year. Moreover, amid severe competition from other IT majors like Wipro Ltd. (WIT), the high attrition rates continue to pose serious challenges for Infosys, as the cost of training new individuals is significantly high for this Zacks Rank #3 (Hold) company.
Whether Murthy’s initiatives will be able to beat the odds and achieve the desired growth levels, only time will tell.
Some Other Stocks to Consider
Some better-ranked stocks that can be considered at the moment include GTT Communications, Inc. (GTT) and Luxoft Holding, Inc. (LXFT), both sporting a Zacks Rank #1 (Strong Buy).
On Sep 15, 2014, we issued an updated research report on Infosys Technologies Ltd (INFY), a leading provider of business consulting, technology, engineering and outsourcing services.
Infosys proclaims its expertise and core competence in consulting, IT services and business-process management. However, the company had been losing its edge recently, as reflected by the declining top and bottom lines, lower margins, high attrition and loss of businesses to competitors. To counter this sluggishness and reclaim the IT major’s lost glory, the company’s co-founder Narayana Murthy came out of his retirement in Jun 2013.
After Murthy’s return the company has witnessed an uptrend in its operational performance and deal wins. Infosys’ one major strength is its Global Delivery Model which enables an efficient development of its business solutions, designing of IT platforms from initiation to completion and conduction of ongoing maintenance process using its workforce on-site along with its development centers located in India and abroad. Further, Infosys intends to acquire companies or develop alliances that complement its core competencies. Recently, the company collaborated with SAP to develop new mobile applications for the retail industry so as to enhance the wireless communication between the consumer packaged goods (CPG) companies and sales representatives and merchandisers.
However, even after a string of measures taken by Murthy to retain the high performing employees, the significantly high attrition rates remain a concern for the company. In fiscal 2014, the company’s attrition rate (excluding subsidiaries) increased to 18.7%, compared with 16.3% in the prior fiscal year. Moreover, amid severe competition from other IT majors like Wipro Ltd. (WIT), the high attrition rates continue to pose serious challenges for Infosys, as the cost of training new individuals is significantly high for this Zacks Rank #3 (Hold) company.
Whether Murthy’s initiatives will be able to beat the odds and achieve the desired growth levels, only time will tell.
Some Other Stocks to Consider
Some better-ranked stocks that can be considered at the moment include GTT Communications, Inc. (GTT) and Luxoft Holding, Inc. (LXFT), both sporting a Zacks Rank #1 (Strong Buy).
On Sep 15, 2014, we issued an updated research report on Infosys Technologies Ltd (INFY), a leading provider of business consulting, technology, engineering and outsourcing services.
Infosys proclaims its expertise and core competence in consulting, IT services and business-process management. However, the company had been losing its edge recently, as reflected by the declining top and bottom lines, lower margins, high attrition and loss of businesses to competitors. To counter this sluggishness and reclaim the IT major’s lost glory, the company’s co-founder Narayana Murthy came out of his retirement in Jun 2013.
After Murthy’s return the company has witnessed an uptrend in its operational performance and deal wins. Infosys’ one major strength is its Global Delivery Model which enables efficient development of its business solutions, effortless designing of IT platforms from initiation to completion and conduction of ongoing maintenance process using its workforce on-site along with its development centers located in India and abroad.
Further, Infosys intends to acquire companies or develop alliances that complement its core competencies. Recently, the company collaborated with SAP to develop new mobile applications for the retail industry so as to enhance the wireless communication between the consumer packaged goods (CPG) companies and sales representatives and merchandisers.
However, even after a string of measures taken by Murthy to retain the high performing employees, the significantly high attrition rates remain a concern for the company. In fiscal 2014, the company’s attrition rate (excluding subsidiaries) increased to 18.7%, compared with 16.3% in the prior fiscal year. Moreover, amid severe competition from other IT majors like Wipro Ltd. (WIT), the high attrition rates continue to pose a serious challenge for Infosys, as the cost of training new individuals is significantly high for this Zacks Rank #3 (Hold) company.
Whether Murthy’s initiatives will be able to beat the odds and achieve the desired growth levels, only time will tell.
Some Other Stocks to Consider
Some better-ranked stocks that can be considered at the moment include GTT Communications, Inc. (GTT) and Luxoft Holding, Inc. (LXFT), both sporting a Zacks Rank #1 (Strong Buy).
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