Our Bureau

New Delhi, May 7

INFOSYS Technologies and Wipro have ranked fourth and fifth in a report on `The most valuable outsourcing companies' compiled by Global Outsourcing publication.

"The ranking of 12 most valuable companies published in April 2005 issue of Global Outsourcing has IBM at the top, quite predictably, with a valuation of more than $140 billion. ADP takes the number 2 slot with market capitalisation of $26 billion, ahead of Accenture ($23 billion), a company with almost double of ADP's revenue. The next two positions are taken by Infosys and Wipro with a market capitalisations of $19.9 billion and $14.6 billion, respectively," a release said here.

Revenues leader such as EDS and CSC are ranked much lower at number 9 and 11 positions, respectively. The market capitalisation figures are as on April 1, the statement clarified.

"What is noteworthy is that all the offshore centric companies in the list - Infosys, Wipro and Cognizant - have a significantly higher P/E ratio than others in the list. In fact the average P/E ratio of these three companies at 54.4 is more than twice the corresponding figure for the rest of the companies in the list," it said.

While analysts expect the Indian companies - which have much lower revenue figures and high market capitalisation - to use their strength to acquire and grow big rapidly, the report reveals that it is unlikely that Indian firms would do acquisitions to grow rapidly.

The report has ranked companies listed in the US stock markets and whose revenues from services are significant (more than 40 per cent of the total revenues) it said adding that therefore companies such as TCS have not featured in the list.

(This article was published in the Business Line print edition dated May 8, 2005)
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