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 three editions start on January 1, 2008, with a value of 1000.
MW IT Index® Global Edition
The MW 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 fourth quarter of 2012. 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.
The latest MW IT Index® (Global Edition) shows that while the global IT industry produced mixed results in 2012, prospects for most sectors and geographies in 2013 is looking up.
In the United States, SaaS enterprise valuations were up approximately 20% for the year, largely due to growth in the first two quarters. The sector experienced substantial acquisition activity as both traditional software companies and major SaaS companies jockeyed for leadership positions. In fact, 7 of the 20 companies tracked by the Index in 2012 were acquired in 2012.
While the IT Supply Chain sector suffered in 2012, VARs and technology solutions providers are continuing to move up the value chain and acquire new areas of expertise to attract new and larger customers. Still, regardless of whether they go big or go niche, they must look to the cloud for a new lease on life.
In India and China, cross-border acquisitions are on the rise, as companies in both markets look to globalization to increase growth and influence. Meanwhile, the economy in both countries is rebounding, which bodes well for companies in both geographies.
View the entire Index here.
The MW IT Index® (India Edition) is an analysis using securities that are weighted according to the market value of their outstanding shares. This Index includes 36 Indian IT Services and Business Process Outsourcing (BPO) companies traded in the U.S. (NYSE and NASDAQ) and Indian (BSE) stock markets.
The MW IT Index (China Edition) is an analysis using securities that are weighted according to the market value of their outstanding shares. This Index includes 28 Chinese IT Services and Business Processing Outsourcing (BPO) companies traded in the U.S. (NYSE, NASDAQ, and OTC), London (LSE AIM), Chinese (SZSE, SHSE, SEHK) or Taiwanese (TSEC) stock markets that are a composite representative sampling of enterprise values.
The MW IT Index (U.S. Edition) is an analysis using securities that are weighted according to the market value of their outstanding shares. The Index includes 166 IT companies traded on the U.S. stock markets that are a composite representative sampling of enterprise values in IT Services & BPO, IT Supply Chian Services, and Software and SaaS. Consequently, Cognizant, which is an Indian outsourcing company trading in the U.S., is included, but Rolta, which does not trade in the U.S., is not included.
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.