MW IT Index®

Overview

martinwolf publishes three proprietary indices (U.S., China and India Editions) that are used by IT sector businesses, international media, and the professionals at the firm to analyze the state of the industry. The MW IT Index remains the only index of its kind in the IT Services industry.

All editions are tracked on a five-year historical basis beginning with a value of 1000. 

MW IT Index® Global Edition

ThMW 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 through the third quarter of 2014. The global edition of our Index combines our U.S., India and China editions, tracking companies and comparing them to public stock exchanges in each of these geographies.

Topline Analysis

The main story for this quarter has been one of meaningful M&A, as several major players in each sector that we track have turned to acquisitions to distinguish themselves from their peers either by adding size or capabilities.

In the IT services space, chief drivers for M&A include achieving new verticals and geographic reach - as in the case of Cognizant and Teleperformance acquiring TriZetto and Aegis's U.S. division, respectively. In the Software and SaaS space, M&A speaks to a different trend - the need to grow cloud capabilities as quickly as possible through both acquisition (see SAP acquiring Concur) and private transformation (see Tibco and Compuware).

On an international scale, the Chinese IT Services market enjoyed a volatile rise thanks to anticipated government stimulus and a halo effect from the Alibaba IPO, while the steadier growth of the Indian IT Services market reflected its greater maturity.

View the entire Index here.

Description and Formula

The MW 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.