Infosys which has recently lost its ‘IT bellwether’ title to TCS, appears to be at a vulnerable spot, compared to some other top tier IT players including TCS, Cognizant and HCL Technologies. While TCS is expecting a sound demand for its services, Infosys, on other hand, warned against slower client spending.

Although, Infosys has been more consistent with its clients than its peers in the past few quarters, but the June 2012 results revealed that Infosys is facing pressure on the revenue front. In contrast, TCS remained stable in its growth streak while taking advantage of a demand rebound in the period subsequent to the subprime crisis of 2008. The difference between TCS and Infy’s  net margins has reduced from over 870 basis points in the 12 months to June 2009 to 290 basis points in the 12 months to June 2012.

Moreover, Infosys has also reported over 3 percent decline in pricing in quarter ending June 30th. Although, TCS has also taken a 1 percent drop in the billing rates, still Infosys’ price cut looks steeper compared to its historical trend. 

Market experts believe, there are deep, endemic issues with Infosys and they are not getting the confidence that things are fine. It is quite possible that Infosys will obtain new contracts at reduced billing rates as its management has indicated a stable pricing scenario in near future.

However, it is difficult to anything for now. Let time decide it. Till then, stay tuned.