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IT Index


The martinwolf IT Index (Global Edition) is a report of our proprietary analysis using securities that are weighted according to the market value of their outstanding shares. The global edition of our Index combines our U.S., India and China editions, tracking companies and comparing them to public stock exchanges.

Topline Analysis

In 2017, the economy is shifting into a new normal -- persistent growth (the third-longest expansion in US history) fueled primarily by exceptional strength in the technology industry. In fact, with a 22.8% advance, the S&P 500 tech sector has been the best-performing sector this year. Today, we revisit the martinwolf IT Index to explore how these economic conditions affect each of our core segments: IT Services & BPO, IT Supply Chain, Software and SaaS. The unparalleled rise in the tech market has led to a rapidly changing environment and increasing competition in each of these segments across the globe. As a whole, the FAANG stocks have been on a roll. All FAANG stocks rose in the second quarter as these titans captured greater market share in their respective industries. Looking beyond FAANG, weakening sales of networking hardware giants has demonstrated the crystallizing shift to subscription software and services. In order to remain competitive, companies today must find ways to secure their core business while quickening their transition into more profitable avenues -- creating opportunities in M&A to gain crucial edges. We also take a look at the Chinese and Indian IT Services markets. After a lukewarm first quarter, Chinese outbound M&A rebounded in the second quarter with deal value increasing 148% quarter-on- quarter. Though India's pattern was the inverse -- growing more than 20% in the first quarter and experiencing a slight plateau in the second quarter -- more transformative M&A deals are expected to come.

View the entire Index here.

Description and Formula

The martinwolf IT Index is a market-value-weighted index. The representation of each security in the index is proportional to its last sales price times the total number of shares outstanding, relative to the total market value of the respective index.

Adjustments for securities being added to or deleted from the index, or capitalization changes, are made periodically. Stock splits and stock dividends are likewise adjusted for during the process. In the case of cash dividends, no adjustment is made.