However you arrange the competitive landscape, InfosysTechnologies (NASDAQ:INFY) is a major player for outsourcing to India, and its valuation reflects that. The question for investors, of course, is whether that valuation leaves much room for long-term, value-based appreciation.

Infosys' second-quarter results certainly confirm its reputation as a growth company. Revenue rose 38% to more than $500 million, and net profits grew 42% to just under $138 million. Margins eased off a bit in the quarter, but not enough to worry me yet. The company hired more than 6,000 new workers (on a net basis) while investing in projects for large clients like Visa.

The company added 34 clients this quarter, including a $250 million piece of a new ABN Amro (NYSE:ABN) contract split among several companies. Client retention appears to be strong, and the company raised its guidance.

But is this stock really worth its lofty price? The market values Infosys almost 82% higher than Motley Fool Inside Value recommendation Accenture (NYSE:ACN), even though Accenture has almost three times as much structural free cash flow on a trailing basis. Relative growth rates play a role here; Infosys' cash flow may be smaller, but it's growing much more rapidly than its American rival. What's more, while Accenture looks to expand into India, I'd say Infosys has a bit of an edge in its own backyard.

Competition really isn't my main worry. Yes, Accenture, IBM (NYSE:IBM), Infosys, EDS (NYSE:EDS), and Wipro (NYSE:WIT) all compete for some of the same business. And yes, securing talent will get more competitive and probably more expensive. But let's just push that to the side for a moment.

Here's my bigger concern: Do you want to pay almost 25% more for Infosys shares in America than Indians pay in India? Due partly to India's restrictions on foreign investment, arbitragers can't equalize the prices between U.S. and Mumbai shares, so you have to pay up for the "privilege" of owning this stock. I'll grant that this is basically a moot argument -- you should probably just look at the American price and not worry about what it costs in India. Nevertheless, some investors may find this irksome.

I'll happily concede that Infosys is both a well-run growth company and something of a bellwether for software and outsourcing. But it'll be snowing in Bangalore before I pay this much more for Infosys shares than Accenture's.

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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).