Stay Away From Infosys

This article was originally published by TheStreet, and also appeared on Yahoo! Finance, on May 8, 2014.

By Sarfaraz A. Khan
 

NEW YORK (TheStreet) -- Infosys (INFY_) managed to beat the market's earnings estimates in its recent quarter, but that was just about the only good thing to cheer about.

The better-than-expected performance has come on the back of the weakness in the Indian rupee. Excluding the impact of exchange rate fluctuations, the company continues to struggle with growth in its key markets: North America and Europe.

Moreover, the strengthening rupee and the company's failure to rein in its retention rate can put a serious dent in its turnaround efforts, even as the industry grows.

What Makes This Small Outsourcing Firm a Buy?

From The Motley Fool

Syntel (NASDAQ: SYNT) is one of the leading providers of IT and knowledge- process-outsourcing (KPO) services. The company has been reporting steady growth despite operating in an extremely competitive environment. It has recently released its quarterly results in which it has again beaten both top- and bottom-line estimates by crossing the $200 million quarterly sales benchmark. This is the third time in a row that Syntel has delivered better earnings than market expectations.

Positive earnings beat

In its results announced two weeks ago, Syntel reported a 13% year-over-year and 7% sequential increase in revenue to $202.5 million, which beat analysts’ estimates by $4.6 million. Its net income also