When the Nasdaq stock market opens next Monday, Indian outsourcer Infosys Technologies will become the first Indian company to be included in its prestigious list of top-100 companies.
The Nasdaq-100 index is composed of the 100 largest non-financial stocks on the Nasdaq Stock Market in terms of market capitalisation. The inclusion of Infosys follows Nasdaq’s annual revision of the index.
Among the other tech companies to be affected by the changes on 18 December include the addition of networking vendor Level 3 Communications to the list, while JDS Uniphase, which sells broadband test and measurement solutions and optical products for communications, commercial, and consumer markets is being dropped.
Infosys, India’s second largest outsourcer, became the first Indian company to be listed on the Nasdaq in 1999. It has emerged as the poster child for the Indian outsourcing industry, thanks partly to its strong revenue and profit growth, but also due to some deft brand-building in India and abroad.
Other companies in the index include Google, Dell and Microsoft. US outsourcer, Cognizant Technology Solutions is also in the top-100 and uses India as a hub for its offshore services delivery.
Infosys called its addition to the index an important milestone for the company. Over the years it has tried to break out of the mould of an Indian services provider, to establish itself as a global company on a par with competitors like systems integrators Accenture and EDS. It has also started to offer higher-value consulting services in addition to its contract application development and business process outsourcing.
Infosys’ inclusion in the Nasdaq index is one of several factors that contribute to building a brand, said Siddharth Pai, a partner at Technology Partners International, a sourcing consulting company. Ultimately, however, its continued good performance will matter the most, he said.
Infosys, like other Indian outsourcers, is still far from being a true global services company, and to become one it will need to make substantial investments in new geographies and broaden its services offerings, he added.