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. 

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 first quarter of 2015. 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 first quarter of 2015 conveyed a mixed but optimistic forecast for the coming year, with indications of some headwinds in the quarters to come but clear signs of trends we expect to continue to be dominant. While the keyword for the previous quarter was uncertainty—both in terms of the global economic condition and broad variance in individual Index performance—this quarter has been more stable. 

Looking forward, expect this to be a year of steady growth for most sectors of the IT industry, taking advantage of spending increases forecast by some analysts to reach $681 billion (up 4.8% from last year and growing at a CAGR of 4.5% through 2018). Expect the familiar pattern of Hardware seeing the lowest growth while services lead—particularly high value services like SMAC (social, mobile, analytics, cloud). 

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.