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Will Cognizant steal the tag of No.3 from Wipro?
By siliconindia
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Friday, 11 February 2011, 01:38 IST |
1 Comments
Bangalore: With the speculations doing rounds about Cognizant being on the verge of becoming No.3 major in IT industry after TCS and Infosys, will Wipro gear up to retain its position.
India is generating around 55 percent of jobs globally by hiring up to 2 lakh engineers in 2011. Infosys alone will hire about 26,000 engineers. Cognizant is lagging behind Wipro by only $30 million and has been exceeding its financial targets for the past quarters and if their growth continues in the same way, they'll soon over take Wipro. Is the replacement of joint CEOs recently affecting the growth of Wipro?
WIPRO reported $1.27 billion in Q3 of 2011 while Cognizant came close with $1.21 billion revenue, Cognizant's Q4 revenue was up 45.20 percent from $902.70 million to $1.21 billion on a year-on-year basis. Wipro's revenues were less than expected than 10 per cent increase in its IT services revenues at $1.34 billion in the Q4 of 2010. TCS's revenue for the same quarter was at $2.14 billion, while that of Infosys stood at $1.58 billion.
"We are pleased with how quickly our business rebounded in 2010, a validation of our strategy of continuing to invest through the downturn," said Francisco D'Souza, President and Chief Executive Officer of Cognizant, in a statement. "As our clients continue to recover from the recent economic turmoil, it's clear that our industry stands at yet another inflection point."
According to Gordon Coburn, CFO, Cognizant, "The present programme is part of ongoing strategy of investing in our people, process, system and infrastructure to support our long-term growth. We will continue to evaluate opportunities for further construction expansion over the coming years."
Patni Computer Systems, which combined with iGate is 10th among India-centric offshore providers, registered nearly 3 per cent year-on-year fall in net profits to $39.4 million in the December quarter while revenue was up 7.6 per cent at $183 million.
Due to the recession IT sector got affected and clients were hesitating to invest in this industry. As soon as recession got over IT sector boomed and companies made the most of it. Now again the situation seems to be the same for every IT service providers. The next quarter will actually decide the fate of Wipro.