Sands Capital - What Matters Most Globant Takes A Design-First Approach to Pure Play Digital Service
If you’ve never thought about investing in IT services, this podcast episode could change your mind. Sands Capital Sr. Research Analyst Eric Black takes you through the investment case for Globant, the world’s largest pure play design-first digital services provider. Asset-light businesses such as Globant can be hard to evaluate, but the opportunities in the 1.5 trillion market of IT Services are undeniable. Eric helps us see why, unpacking the potential of AI, Globant’s strategic business partnerships, and the loyalty the company has generated from the more than 1,500 Fortune 500 and Fortune 2000 companies on its client list. Globant’s cutting-edge software solutions have made their way into products at Disney, ESPN, and Google and are making lives easier around the globe.
Episode Transcript Available Here
- (01:50) Not a labor-cost arbitrage model
- (03:44) The Disney Magic Band. The Globant product you’ve probably already seen.
- (05:14) Tech companies don’t do everything in-house. Enter: Globant.
- (06:59) What makes Globant a growth business?
- (08:41) A Thought Leader in AI for the last decade and MaganifAI
- (11:45) The research process into digital transformation
- (14:31) A one-size-fits-all all approach would be antithetical to the way Globant operates
- (18:26) The pandemic boost and a global presence
- (21:51) “Value-added focus” and the power of a leader
- (25:10) The competitive moat for a huge market and Globant’s potential advantages
- (28:24) Competitors have the same advantages? Why we like Globant’s pure play angle.
- (31:19) The disruptors lying in wait
- (34:21) Staffing costs and flexing to keep margins high and remain profitable
- (36:25) Researching a company operating in intangibles: what’s different?
- (39:04) The portfolio managers visit Buenos Aires
- (40:44) From “why would you invest” to “what’s the insight”?
- (43:04) Responsible investing in human capital, labor rights and gender diversity
- (44:49) Nefarious digital technology and cybersecurity - Globant’s response.
- (49:26) Under the radar companies and enablers of big trends can make for great investments
- (52:56) Quick recap of Season 2 episodes
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