New research by Datamonitor found that shares in the major India-based IT providers have outperformed their Western rivals this year.
“The share prices of the largest four India-based vendors all increased by double-digit percentages, a feat that none of the largest five US service providers managed, and only one of the largest five European players, Capgemini, achieved,” says Patrick O’Brien, senior analyst for global computing services at Datamonitor. “Our research has shown that overall shares in IT services companies have offered a poor return on investment in the first three quarters of the year, with overall increase in prices of less than 3 percent, far less than most of the capital markets’ indices.”
Three regional indexes, which track the top five IT services companies in India, US and Europe, show the Indian Top Five rose 117 in the last nine months, while the US Top Five reached 98.3 and Europe’s Top Five index broke 100.4.
“The Indians haven’t had it their own way all year though, as the India Top Five index was the worst performing of the regional indices by early June, by when it had slumped to 92.2, which reveals the volatile and risky nature of the stocks, despite their handsome overall returns,” adds O’Brien.