Infosys may soon replace Cognizant as second-largest IT services company in India: Report

At the current rate of growth, Infosys Limited would become the second-largest Indian information technology services company by the end of March 2023, replacing the New Jersey-headquartered Cognizant Technology Solutions Corporation, according to a Livemint report.

The Bengaluru-based tech behemoth has already managed to cut the revenue difference with Cognizant by half in the past two years. Infosys posted revenue of $4.25 billion in the October-December period, marking a 6.3 percent sequential dollar revenue growth. Meanwhile, the revenue figure of Cognizant, which follows a January to December financial year, is expected to be between $4.75 billion and $4.79 billion. This would translate to a $500-million difference in quarterly revenue between the two companies.

However, industry experts have said Infosys would cover the difference in about a year if it maintains the current growth trajectory. They point out that the difference between the revenues of the two IT companies was more than $1 billion at the end of December 2019 but it reduced to $688 million by the end of December 2020, and now, the gap has come down to $500 million.