The quarterly results of the top IT services vendors tracked by ComputerWire yielded few surprises, with offshore outsourcing providers once again leading the way.
For the second consecutive quarter, India's 3i Infotech took top spot as the fastest growing company, increasing sales by over 90% in the quarter to $72m. On the back of its stellar performance, along with the recent acquisition of J&B Software for over $25m, 3i Infotech has increased its revenue guidance for fiscal 2008 to between $290m and $320m from its previous target of about $250m.
While second-placed Cognizant's figures appear impressive on the surface, they disappointed investors and precipitated a 19% fall in the company's share price. The concerns centered on Cognizant's revenue guidance for the fourth quarter which, at between $590m and $595m, came in below the analyst consensus of $598m. Cognizant derives approximately 50% of its revenue from financial services, and the concern is that the company's revenue stream is beginning to feel the effects of the US credit squeeze.
