As businesses reorganize in the current economic environment, business process outsourcing (BPO) and consulting firms are helping them cut costs by evaluating and improving operations, Janney Montgomery Scott Analyst Joseph D. Foresi says.
“High-end prospective customers are much more comfortable moving their work offshore, and in that environment pipelines are starting to get stronger and more deals are getting signed,” Foresi said. “This is something that wasn’t taking place 12 months ago, and certainly not two years ago.”
Foresi points to Cognizant Technology Solutions (CTSH) as a company invested in consulting and outsourcing. He says the rationalization of business practices will continue, and outsourcers could offer attractive risk/reward.
“You have Cognizant, one of the fastest-growing names in the offshore space. And they of course continue to provide upside results and drive revenues higher,” Foresi said. “Finally we’re starting to get constructive on some of the BPO names.”
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