DeepDive

Research Agenda

DeepDive’s overarching agenda is to study secular changes and controversies affecting the tech sector and to identify and thoroughly analyze select stocks rendered substantially mis-valued. A primary focus of our research (in recent months and currently) is studying the impacts of Cloud computing and SaaS (software as a service). In particular, we’ve surveyed and interviewed IT services buyers about their plans to adopt Cloud and how these plans will affect their IT outsourcing contracts and vendor selection. These interviews and our broader industry research have helped us to dimension the implications of Cloud and SaaS for the IT services industry and for key players in the industry.

Key Research Topics

The IT services questions we hear from investors primarily relate to: 1) impacts of Cloud, 2) Digital trends, and 3) cyclical and geographic demand trends.  We are continually tracking and evaluating these overarching factors, with our latest research findings generally more pessimistic than the Street’s.

Besides the aforementioned overarching factors, we are studying three additional industry-level topics (outlined in our Industry Framework material) that we think should be considered important investment controversies -- i.e., topics that we think are not garnering enough attention on the Street, potentially causing blind-spots.

Publication Priorities

Our prior and ongoing research has implications for a number of enterprise tech stocks, and we are applying our research to refine our views on ten sets of stock-specific controversies -- i.e., controversies related to:

  • Traditional IT services firms: Accenture, CSC, and CGI
  • Indian firms: Cognizant and Infosys
  • BPO players: Genpact and ADP / Paychex
  • Tech product firms: IBM Global Services, HP Services (EDS), and traditional software firms

 

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