Based on mid-year financial evaluations, TCS and Cognizant have emerged as the front-runners, while traditional favorites including Infosys, Wipro are lagging behind.
The IT sector is witnessing healthy quarters since TCS, Cognizant and IBM are posting strong financials. But on the other hand, gloomy numbers for Infosys and Wipro are portraying entirely a different picture. The disappointing numbers are due to company-specific issues or have some other aspect is yet to explore.
In a bid to weather the difficult situations and looming economic uncertainty in US and European regions, TCS has realigned its workforce and is expected to deliver growth further too. While TCS is expecting a sound demand for its services, Infosys, on other hand, warned against slower client spending. Many analysts feel that financially and strategically, Infosys has failed to make any major impact on industry and this possibly has affected its brand value.
In recent past, Cognizant too has pitched some good clients including JPMorgan, American Express and Pfizer thereby raising their net profit for the quarter to 21 per cent to $208 million.
A massive top level restructure at Infosys and Wipro is also considered as one of the reasons to lag behind in the race. The transition and the exits of key managers have extended an opportunity to TCS and Cognizant for further increasing their lead.
Hiring at the companies is also a sign of how fast the companies are growing. Here too, TCS and Cognizant stole the limelight each adding over 14,000 employees.
While Wipro and Infosys wait for their revamped managements to push a new plan, analysts say the challenge would be to recoup the momentum.
Tags: JPMorgan, American Express, Infosys, Wipro on slow track, TCS growth
Fujitsu, a world renowned leading Information and Communication Technology (ICT) company based out of Japan, has made a recent announcement regarding a new system of integrated cloud products and serv...
Information provided on this page has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions.ITVoir.com, and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this page, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. ITVoir.com,its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided.