Cognizant is all set to oust Wipro to become India’s Third Largest IT Company on August 2, the day when they will declare their quarterly result. On Wednesday Wipro announced their revenues at $1.408 billion for the Q1 which is about $40 million less than Cognizant’s April-June quarter revenue guidance of $1.45 billion.
Apart from that Infosys‘s and Wipro’s results all other IT giants like TCS, IBM and Accenture have shown incredible growth in the IT sector. Cognizant is also expected to meet the target and beat the expectation. Infosys’s and Wipro’s dismal result only is due to own company-specific issues.
Analysts explain that Cognizant’s focus on faster growth rates and market share gain with lower margins has helped it to surpass Wipro. It invests significantly higher than its competitors in sales and marketing and recruits lots of highly qualified employees from MBA background.
Market forecast that Wipro to grow at 13.5% for the 2011-12 FY while Cognizant is expected to grow at around 29% growth rate. And if this trend continues then Wipro will no longer remain third largest IT service provider in India and it would be very difficult for them to catch up with Cognizant in the near future.
