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.

ITVoir NewsDesk