New Delhi: Two US-listed Indian outsourcing firms—Cognizant Technology and Exlservice—have made it to a list of the world's 100 ‘Hot Growth’ companies with significant growth potential.
The two Indian firms are among 10 software and services firms that have appeared in the list of companies from around the world.
US headquartered IT firm Cognizant has its 75 per cent of workforce in India. It was ranked at the 15th position, while Exlservice was at the 57th number.
The annual list has been published in the latest issue of Businessweek. The magazine used Standard and Poor's database of 10,000 public companies with revenues of $50 million to $1.5 billion a year. The rankings were based on three-year sales and earnings growth as well as return on capital.
Only those companies were considered that carry a market cap of USD 25 million or more and a stock price of at least $5, the magazine said.
According to the US-based magazine, Cognizant that is the fifth-largest Indian infotech outsourcing firm. The company, which has over 43,000 employees, has consistently racked up better growth rates than its larger rivals.
In the first quarter this year, the company's turnover rose by 61 per cent to $460 million.
"It has outperformed its peers because it has deftly targeted a handful of industry segments where demand for offshore outsourcing is strongest, including financial services, health care, and pharmaceuticals," the magazine quoted.
Another Indian entity in the list, Exlservice, which has also been listed in the US stock exchanges last year, has a total headcount of close to 8,200 employees. The company reported 85 per cent jump in its first quarter revenues, close to $40 million.
Exlservice has a market cap of close to USD 540 million , while that of Cognizant currently stands at about USD 11 billion.
Businessweek noted that cognizant has been on the list for six years running and seven times since the list was launched in 1985. The IT services firm faces stiff competition from bigger competitors like Wipro and Infosys, but it continues to offer "better, faster, cheaper" services than other it outfits, it said. "And being better and faster than the next guy is what hot growth is all about."
With agencies inputs
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