Frequently Asked Questions

What is the Zagada Waagstein Global Outsourcing100 Index?
What and seven specialty Indices in the Index Family?
Who back tested and calculates the Index?
Who maintains the index and how is it done?
Which data vendor provider distributes the Index performance?
Who developed the Index and why?
How many companies are in the Zagada Waagstein Global 100 Index?
What is the geographic breakdown of the Zagada Waagstein Index family?
What sectors are represented in the Index?
How was the Index constructed?
What market criteria are used for selecting companies in the Index?
How is the index weighted?
How can I be notified of changes to the Index?
Can I invest in the Zagada Waagstein Global Outsourcing 100 Index?
Can I start a mutual fund or an ETF based on the Index?
What other licenses are available based on the Index?

What is the Zagada Waagstein Global Outsourcing100 Index?

The Global Outsourcing 100 Index (GO100)’s formal launch date is June 11th 2007. It is the main index in Zagada Waagstein Global Outsourcing index family, which comprises 7 additional regional, sector and composite indices. The index is a specialty index focusing on information technology outsourcing (ITO) and business process outsourcing (BPO). Its constituents are selected from 17 global exchanges covering the Americas, Asia – Pacific and the European region. All 100 selected companies in the index are exchange - listed and are intended to offer investors and asset managers the best investment returns in the service globalization sector. The Zagada Waagstein Global Outsourcing 100 Index is calculated by Standard & Poor’s and is available on all major data vendor and on Bloomberg under the symbol ZAWA100 and ZAWA for the seven additional specialty indices.

What and seven specialty Indices in the Index Family?

There are three regional, one composite and three sector indices. These specialist indices are intended to offer investors and asset managers opportunities to use a focused approach in targeting and designing and benchmarking their investment strategy based on geographic, sector and performance outcomes. The family of indices and their symbols are listed in the data vendor question below.

Who back tested and calculates the Index?

The indexes are calculated real-time by Standard & Poor’s and provide price return, total return and dividend yield information. The back testing was also executed by S&P and covered the period 2001-2006. The Zagada Waagstein Global Outsourcing 100 Index is disseminated on all major data vendors and on Bloomberg under ticker: ZAWA 100 and ZAWA for the 7 other indices.

Who maintains the index and how is it done?

A Zagada Waagstein Index Committee manages the selection and overall decision management of the index. Companies are monitored and evaluated to ensure they maintain the liquidity, capitalization and market performance requirements established by the index committee. The committee may remove companies due to corporate actions resulting in mergers, acquisitions and bankruptcies. ZagadaWaagstein may also remove companies at rebalancing.

Which data vendor provider distributes the Index performance?

The index is carried on Bloomberg as well all-major leading data vendor providers. The Zagada Waagstein Global Outsourcing Index family includes the following indices:

Main Index:

ZAWA100 Zagada Waagstein Global Outsourcing 100

Regional Indices:

ZAWAAM Zagada Waagstein Global Outsourcing Americas

ZAWAEU Zagada Waagstein Global Outsourcing Europe

ZAWAIN Zagada Waagstein Global Outsourcing India

Sector Indices:

ZAWA50 Zagada Waagstein Global Outsourcing 50

ZAWAF20 Zagada Waagstein Global Outsourcing Focus 20

ZAWAG20 Zagada Waagstein Global Outsourcing Growth 20

Composite Index:

ZAWAP40 Zagada Waagstein Global Outsourcing Performance 40

Who developed the Index and why?

Zagada Markets and Waagstein Research jointly developed and own the indexes’ intellectual property. Zagada and Waagstein signed a co-publishing agreement in November 2006 to jointly research and publish specialist projects and reports on Brazil, Russia, India and China (BRIC). Waagstein in based in Sweden with an analyst network in Europe and the Asia- Pacific region. Zagada is based the U.S with an analyst network in North America, Latin America, Central America and the Caribbean region. The first outcome of the partnership was the publication of the Zagada Waagstein Indian Executive IT Outsourcing Report 2007 in April 2007. The Index was created in response to a growing interest in global IT and BPO outsourcing investment opportunities from institutions and individuals for investment strategies that focus on companies in the sector.

How many companies are in the Zagada Waagstein Global 100 Index?

The Index includes 100. The seven specialty regional, sector and composite indices have constituents ranging from 20 to 50 companies.

What is the geographic breakdown of the Zagada Waagstein Index family?

Companies in the Zagada Waagstein Global Outsourcing 100 Index are selected from 17 global exchanges. Asia-Pacific companies make up 44% of the index followed by 41% and 15% from the Americas and Europe respectively. This wide range in geographical distribution reflects the completeness with which the Zagada Waagstein Index family has been constructed to offer flexibility to investors.

What sectors are represented in the Index?

Zagada Waagstein Index family primarily focus on the global outsourcing sector. Two segments define the sector: Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO). The BPO segment entails two-core activities- Voice (contact centers) and non-voice (back office data related input activities). Global outsourcing activities include contracts executed within a specific country from one company to another, (onshore), across distant borders (offshore) and across close borders (nearshore).

How was the Index constructed?

Companies in the index are selected on the following basis: demonstrated market leadership in one or both of the two major sectors defining globalization (outsourcing) categories: IT Outsourcing (ITO) or Business Process Outsourcing (BPO). Secondly, Constituents must be of investment quality with acceptable liquidity and market capitalization. Thirdly, Constituents with ITO, BPO or support service companies, subsidiaries or units must represent a minimum of 20% (preferable 25%) of parent’s revenues. Zagada Waagstein’s strategy is to include a diversified group of large-, mid-, and small-cap companies. Fourthly, selection was made with a concentrated effort to ensure the best geographic spread across the Americas, Asia-Pacific and European geographies. Finally, companies must be trading for a complete quarter for consideration for inclusion in the index.

What market criteria are used for selecting companies in the Index?

The Zagada Waagstein selection committee base selection on candidates capitalization, liquidity and market performance. Companies selected must come from exchanges defined as investable. Companies must complete a complete quarter of trading to be considered for selection. See the question above for more information on the selection rules.

How is the index weighted?

The Zagada Waagstein Global Outsourcing 100 Index is equally weighted at 1% and is rebalanced on a quarterly basis. Equal weighting ensures that larger constituents do not unduly influence the performance of the overall index. Additionally, smaller – cap companies achieve equal visibility to larger –cap companies in an equally weighted index, thereby allowing investors to easily access growth companies.

How can I be notified of changes to the Index?

Zagada Waagstein does not provide advanced notification of additions to or removals from its indexes. However, interested parties can subscribe to daily constituents lists for a fee. Please send enquiries to indexesdata@zagada.com for more information.

Can I invest in the Zagada Waagstein Global Outsourcing 100 Index?

Zagada and Waagstein are independent research firms and publishes the index but does not provider investment brokerage and management services. However, our Indexes are available for licensing as investable benchmark products for individuals and institutions investors. Please send enquiry to indexesdata@zagada.com

Can I start a mutual fund or an ETF based on the Index?

Zagada Waagstein offers a variety of licensing options for the Zagada Waagstein Global Outsourcing 100 Index and its 7 specialty indices. Licenses are available for a single index or for the entire family of 8 indices. The Index can be used as the basis for mutual funds, exchange-traded funds and separately managed portofolio. Please email enquiry to indexesdata@zagada.com.