Stock Insight: Gate to Wealth

iGate Global Solutions (formerly Mascot Systems) was set up in India in 1993 as an arm of iGate Corp, USA. The company focused on IT services till it acquired BPO and contact centre businesses in 2003. Today, the company is an end-to-end provider of IT and ITeS services spanning technology consulting, enterprise solutions, application development and maintenance, data analytics, independent verification and validation, and infrastructure management services. The company has over 108 active clients and centres across the US, UK, Canada, China, Malaysia and India. Its facilities are certified for CMM Level 5 and follow Six Sigma initiatives. Its earnings are likely to grow exponentially at a CAGR of 85 per cent over FY07-09E. Here are the key points that make a favourable case for the company. Robust Business ModelOf late, doubts have been raised over the sustainability of a business model that is based purely on labour arbitrage as the means to have a cost advantage. Any decline in cost advantage due to macro-economic changes is a potential threat, and therefore the advantage

This article was originally published on April 01, 2007.