Cognizant to overtake Wipro
By siliconindia   |   Saturday, 23 July 2011, 00:09 IST
Printer Print Email Email
Cognizant to overtake Wipro
Bangalore: The IT Company cognizant is replacing Wipro and will become country's third largest IT service provider after it announces its results on August 2. Reported the Economic Times journalist Pranav Nambiar. The IT services revenue was $1.408 Billion on April-June quarter of Wipro which is about $40 Million less than Cognizant's. The IT major cognizant made a revenue estimate of $1.46 Billion in April - June quarter reports the analyst Tientsin Huang of JP Morgan. He expects an upside in revenues because of Cognizant's track record of reporting premium growth in the June quarter and its more favorable regional mix (larger proportion of North America). Cognizant's $1.45 billion April-June guidance is also greater than the lower end of Wipro's July-September revenue guidance of between $1.436-1 .464 billion. The original basic business for the IT sector is strong as the lately declared quarterly earnings of TCS, IBM and Accenture recommends. Thus cognizant is suppose to meet if not best its guidance. The reflection of company- specific issues as against market fundamentals is what Infosys and Wipro is exhibiting. From the month of April to June 2008, Cognizant traced Wipro by $383 Million in revenues. Cognizant is said to be focusing on faster growth rates and market share profits with lesser margin has helped it to come closer to revenue of Wipro. The human investment is more when compared to sales and marketing as they employ more number of highly qualified MBAs. In the year 2010-11 Wipro's revenue growth was 18.9 percent to $5.2Billion and Cognizant's was 40 percent to $4.59 Billion. Wipro's CEO TK Kurien said the reason for the slowdown of revenue is due to the organizational restructuring and the company would take more few months to increase the growth rates of the industry. The company is less tilted towards the growth areas when compared to the Cognizant. Wipro has a relatively lower exposure to high-growth segments like consulting and systems integration and strong verticals like banking financial services and insurance.

Votal AI: Redefining Workforce Efficiency Through Ethical AI