Is Infosys Losing Its Sheen?

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BANGALORE Infosys is facing a dilemma which the company has not seen since its birth, nearly three decades ago. The neck to neck competition by its rivals Cognizant and Wipro has made Infosys uncomfortable and insecure that it has made rejigs and changed its many of its strategies. The fear of losing the second position has overshadowed the IT bellwether. While Infosys is busy reshuffling its top people, Cognizant has pecked the order in the Indian IT sector. Cognizant this year marked a remarkable step with its quarterly revenues racing past No. 3 software exporter Wipro Technologies. Cognizant is now riding the growth monster and it is said that by the end of this year, Cognizant will soon take over Infosys.

Exactly three years ago, when the global slowdown started, Infosys was some $500 million ahead of Cognizant in quarterly revenues. That gap now stands at around $186 million, dangerously close to being filled within the next few quarters.

Analysts said the Bangalore-based company could lose some of its sheen and narrow its premium gap with rivals Tata Consultancy Services and Wipro due to uncertainty related to top management changes and softening profit margins as a result of wage hikes and currency volatility.