Infosys Can Beat Cognizant To Become 2nd Biggest IT Firm: But How? When?
India based IT major, Infosys, is all set to become the second-largest company in the IT sector, defeating Cognizant.
Infosys has cut the revenue difference with COgnizant by half in the last two years only!
Read on to find out all the details!
Infosys To Beat Cognizant To Become 2nd Biggest IT Firm
Infosys has recorded $4.5 billion in revenue in the October-December period, which indicated a growth of 6.3% sequential dollar revenue growth. Cognizant’s financial year is from January to December, expects a revenue of something between $4.75 billion and $4.79 billion.
In short, the difference between the quarterly revenue of the two companies is $500 million.
Cognizant ended December 2019 with $4.28 billion in revenue as compared to $3.24 billion of Infosys indicating a difference of more than $1 billion. However, after the pandemic hit, Cognizant recorded a revenue of $688 million at the end of December 2020. The company did a business of $4.18 billion in business against $3.51 billion by Infosys.
Thankfully, the gap now has been reduced to $500 million.
In 2021, we reported that HCL Technologies Ltd surpassed Cognizant Technology Solutions Corp to become the fourth-most valuable India-centric information technology (IT) services company on Thursday.
Cognizant’s Decline Due To Leadership?
HCL Technologies, based in Noida, reported a 2.4 percent increase in revenue for the year ending March 31, 2021, following a 15 percent increase in 2020. The company was able to increase its operating margin from 19.6 percent to 21.4 percent by 180 basis points.
Strong performance, a stable leadership team, and an acquisition-led strategy have all helped HCL shares more than double in value over the last thirty months, returning 105 per cent.
Another factor that plays a major role in Cognizant’s decline in ranks is Humphries has failed to assemble a senior management team as the company continues to lose key executives. According to two executives familiar with the situation, Muthu Kumaran, a Senior Vice President and Global Delivery Head at Cognizant Digital Business, resigned last month.
This departure comes after Malcolm Frank, an Executive Vice President and President of Cognizant Digital Business leaving the company in June.