< The 2015 All-Asia Research Team
Total appearances: 13
Team debut: 1997Under the guidance of Parag Gupta, Morgan Stanley’s squad captures second place, rising from the runner-up spot it held the past three years. Former leader Vipin Khare has left the firm. The team of five — located in Hong Kong, Mumbai and Seoul — provides “great customer service,” one fund manager declares. In general, the analysts hold an attractive view of regional information technology services and software providers, “as global demand for outsourcing continues to look healthy, supported by an improving global macro environment, robust company comments and strong hiring trends,” advises the 35-year-old leader, who is making his first appearance on this roster. Key issues they are monitoring for investors include global currency fluctuations, the emergence of niche IT companies, a commoditization of services that would lead to pricing pressure and developments on the legislative front, especially where immigration laws are concerned. Gupta and his colleagues prefer large-cap stocks over midcaps, and India’s Infosys and Wipro — the No. 2 and No. 3 players in the space, after Tata Consultancy Services — are among their top selections. Revenue expansion for these providers can start to converge with industry growth rates over the next few years, Gupta says, owing to their ”concerted effort to improve sales effectiveness, focus on winning large deals and improve client mining.” After earning a bachelor’s degree in commerce from the University of Mumbai and working in assurance and advisory at Andersen and in corporate finance at Ernst & Young, Gupta joined Morgan Stanley in April 2004.