May 30, 2018

Research Methodology

Features of DeepDive’s research approach:

  • Limited client base, enabling significant time for deep and unchartered research on:
    • Industry controversies and secular changes
    • Stocks rendered mis-valued by changes.
  • Deep industry and stock research experience.
  • Proprietary data and pattern recognition on stocks/industry trends.
  • Added market intelligence via collaboration with Everest Group.
  • Proven financial analysis and studies of key metrics.

Research materials include:

  • Proprietary data on organic constant currency growth across 19 services industry segments, along with forecasts for each of the 19 segments based on our studies of secular and cyclical growth drivers.
  • Data on contract signings and pricing trends (from our proprietary contract signings database and Everest’s price benchmarking practice).
  • Specific knowledge of competitive vulnerabilities and opportunities for each of the major service firms.
  • Primary research on IT services buyers’ interests and buyers’ satisfaction with the major service vendors.
  • Intelligence on the forms of digital growth strategies that are working vs. failing, along with a gauge of digital business progress by the major service firms.
  • Unique research on specific market trends that are key to investment controversies – e.g., impact of cyclical forces on consulting market, enterprises’ vendor selection amidst digital shift, impacts of cloud adoption trends, misconceptions about automation, attractiveness of the engineering services market.
  • Intensive study of M&A in the IT services industry and the impact of M&A on the performance of key firms.
  • In-depth experience and research on the IT infrastructure outsourcing market, i.e., the core businesses of IBM Global Services and DXC.
  • Insights on how the software-SI ecosystem is evolving plus research-based material on how the ecosystem can/should be reshaped.
  • Research on how H1B policy changes impact the financials and business models of Indian and other services firms.
  • Bottom-up financial modeling on IT services stocks, with record of identifying flaws in consensus estimates.