India is renowned for a world class skilled talent pool, especially in the technology and science field. When talking about India and technology, the word IT quickly comes to mind. Worldwide IT spending is expected to rise by 2.4% in 2015 and the IT sector is expected to cross $3.8 trillion. A sizable chunk of this business is expected to be handled by Indian IT companies. Most of the amply funded technology companies have made it big in a short while and earned big bucks for the investors and stakeholders. Two prominent Indian IT stocks which quickly come to mind are Infosys Limited (INFY, Financial) and Wipro Limited (WIT, Financial). Both companies provide Business Consulting, Information Technology solutions, Software Services and Outsourcing solutions. Both companies aggressive compete with each other in the Indian and global market.
Infosys and its Global Footprint
Infosys Limited, with a market cap of close to $37 billion, is an Indian software technology giant which has found its way on the list of the most preferred Indian IT stocks. Infosys provides IT Consulting, Software Development and Outsourcing services. Infosys clients are spread across 50 countries which it services through 72 global offices. Its annual revenue exceeded $8 billion and the company made a profit of $1.75 billion in 2014. According to Gartner, Infosys is poised to become the leader in Magic Quadrant for International Retail Core Banking solutions. This is the eighth time that Infosys has managed to bag the leader position in Magic Quadrant. The company has more than 15 offices and development centers in USA alone. Some of its US clients include Kellogg’s (K, Financial), Harley Davidson (HOG, Financial), JFK Health Systems, and NovaSom Inc., The company’s stock is currently trading at $33. Aspen Technology Inc. (AZPN, Financial), Advent Software Inc. (ADVS, Financial), CoreLogic Inc. (CLGX, Financial) are some of its closest competitors.
Wipro Trots the Global Path
Wipro Limited is a provider of comprehensive IT solutions and services which include Consulting, System Integration, Information Systems Outsourcing, IT enabled and R&D services. Wipro is also amongst the preferred Indian IT stocks listed on NYSE since 2000. It is currently trading at $11 and has a market cap of $28 billion. The company revenue exceeded $7.3 billion in 2013-14 and the profit made in the same year was approximately $1.3 billion. The company has achieved ISO 14001 certification and ISO 9000 certification. US based Technology Infrastructure Consulting company cMango Inc., is amongst one of its international acquisitions. NCI Inc. (NCIT, Financial), Datalink Corporation (DTLK, Financial), Globant S.A. (GLOB, Financial) are some of its competitors operating in a similar price band. Besides IT, Wipro also has Consumer Care and Lighting businesses. This division manufactures Personal care, Baby care, Wellness, Lighting, Electric Wire devices and Modular office furniture.
Some other IT companies to watch out: Few other IT MNC’s which have large development centres in India and compete with Infosys and Wipro in the Indian and Global Markets are US based Cognizant Technology Solutions (CTSH, Financial), Ireland-based Accenture Inc (ACN) and France-based Capgemini S.A. (CGEMY).
Last Impression
Infosys and Wipro are in the forefront of the race to grab a big chunk of $3.8 trillion global IT business. The stock forecast for both companies looks bullish. From an investor’s perspective, considering the rapid foray that the Indian economy is making in the Global arena, it would be a good idea to make some space in your investment portfolio for these Indian stalwarts to add a good variety to your portfolio and stand at the gaining position with the world economy heading towards India and China.
