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.
The rapid growth of
Infosys is being seen as an outcome of the efforts of its chairman Nandan Nilekani and chief executive Salil Parekh. On the other hand, Cognizant is struggling to build a stable leadership team and deliver steady growth under chief executive Brian Humphries.
Currently, the largest information technology services company in India is Tata Consultancy Services, a subsidiary of the Tata Group. It provides services such as consulting, applications development, infrastructure support, and business process outsourcing.
(Edited by : Thomas Abraham)
First Published: Jan 14, 2022 11:45 AM IST
