Zacks Industry Outlook Highlights: Patni Computers, Infosys, Wipro Inc. and Cognizant Tech

CHICAGO — Zacks.com releases the latest Industry Outlook. Today’s interview is with senior analyst Abdul Saleh, who talks about the Business Process Outsourcing (BPO) Industry, including Patni Computers (NYSE: PTI), Infosys (Nasdaq: INFY), Wipro Inc. (NYSE: WIT) and Cognizant Tech (Nasdaq: CTSH).

A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://at.zacks.com/?id=2678.

Stocks of companies in the IT Services/BPO Sector have performed impressively along with the broader market averages during the current June quarter after being beaten down since the housing-market-driven overall market collapse in September of 2008. The Business Process Outsourcing (BPO) companies were all under significant pressure even before the economic malaise with a slowdown in its growth trajectory.

In other words, the BPO companies were all trading with an early 2009 growth/recovery story in mind. However that thesis has seen some re-evaluation, given that overall recovery prospects have been pushed towards the latter half of 2009 or early-2010.

Shares of nearly all of the companies in the group got a boost immediately following the election results in India on May 17th. Shares of Patni Computers (NYSE: PTI) have appreciated the most, nearly 77% YTD (as of June 2nd), compared to the heavy-hitters in the industry: Infosys (Nasdaq: INFY) up 43.6% YTD, Wipro Inc. (NYSE: WIT) up 50.1% YTD, Cognizant Tech (Nasdaq: CTSH) up 43.6% YTD and Tata Consultancy (TSC.NS) up 46.5% YTD.

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