Once regarded as the bellwether of India's software business, Infosys is facing a dilemma which the company has not seen since its birth, nearly three decades ago. If reports are to be believed, in seven out of the past 12 quarters, Infosys' sequential sales and operating profit growth have lagged than that of Tata Consultancy Services and HCL Technologies. 

Sources informed, the neck to neck competition by its rivals HCL and TCS has made Infosys uncomfortable and insecure. 

On one side, Infosys is busy in reshuffling its top people, the tech giant Cognizant has pecked the order in the Indian IT sector. It is found that Cognizant is now riding the growth monster. It expected that Cognizant will take over Infosys by the end of this year. 

To the surprise, exactly three years ago, when the global slowdown had just started, Infosys was at some $500 million ahead of Cognizant. But now, that gap has shrunk to around $186 million, dangerously close to further narrow down the gap in next few quarters.

Analysts quote, Bangalore-based Infosys is losing over its rivals including HCL, Tata Consultancy Services, and Cognizant due to uncertainty related to top management changes and softening profit margins as a result of wage hikes and currency volatility.

Further added by analysts, the most immediate problem with the company is that its main clients are worse off than its competitor's. For instance, the biggest Infosys’ customers Bank of America and UBS are spending less on technology. On the other hand, financial firms like Citigroup and JP Morgan that work with Infosys' rivals, are not crimping on technology spending. 

ITVoir NewsDesk