IT Companies, My Perspective -
1) There are basically 2 kinds of IT companies. Product based and Service based.
2) India is known more about service based set up. Where Infy, TCS, HCL, TechM, Wipro are more of service based companies. Flipkart, QuickHeal are product based. 1/n

2) As name suggest product based companies create a product and sell it to multiple clients. Where as service based companies work on particular requirement from client.
3) Again service companies can have different verticals according to domains. BFSI, Telecom are verticals.2/n

Now let's say u want to invest in a product based company. What would you look at. First the products it is known for. Quality of product. Scalability. Uniqueness of product and yes Sales Growth. 3/n

Service company, what you would look at? Talent pool and its competencies, the verticals they have, clients, projects and duration of the projects. 4/n

So the service companies don't hv products? They can have, like infosys has core banking product named finacle. But as the company deals more with services, it's service based company. Similarly a product based company can provide services as well. 5/n

Now the core of both these companies - Technology. Well, IT companies should have a big part of their Capex in using new technologies and reskilling its employees. A company not having this culture will perish. 6/n

Now the noise - 'Cutting Edge Technology'. Digital revenue, cloud, AI, ML, Blockchain!!! Well in the past also new technologies came and they were important. But as I mentioned, it should be in organization's culture to embrace new technologies. 7/n

Among top Indian companies, there is nothing like one is too ahead of the other in terms of digital revenue. Digital offering is the next thing, so everyone gonna embrace it. I don't think, there would be many laggards. So it won't be the main parameter to differentiate. 8/n

So if a product company doing well, what extra thing I would look for? Acquisitions. Look at Oracle, once mainly known for its RDBMS. Then acquire Sun Micro system, got Java and MySQL. Acquired We Logic, and many many products from other companies. 9/n

And what is the most important thing I would look in a service company? Clientele. If it has good clients and the clients renewing deals. That's what you would look for.