Business Week has an interesting answer!
Based on where they make their sales, and the answer is surprising. TCS, India's largest tech-services company, collected 51% of its revenues in North America last quarter, while 65% of IBM's were overseas.
This juxtaposition helps explain investor reaction to the companies' most recent earnings reports. TCS stock declined by more than 10% on Apr. 21 after it reported that earnings for its fourth fiscal quarter fell short of expectations. IBM, by contrast, beat estimates on Apr. 16. Its stock is up 3% since then and 25% since mid-February
Hamm, the senior writer ends it on a positive note
Meanwhile, the Indian companies aren't in a terrible spot; after all, their services are designed to help clients simplify their businesses and save money. Until the U.S. economy pulls out of the doldrums, though, they will have to sell more aggressively and plan carefully so they don't end up with too many employees, which would pinch margins.
No comments:
Post a Comment