TCS beats Cognizant in revenue growth rate for two quarters in a rowThimmaya Poojary
TCS has made a comeback against Cognizant in posting a higher revenue growth rate after lagging behind for some time now
Tata Consultancy Services (TCS), India’s largest IT services exporter, continues to outperform its closest competitor, Cognizant, in terms of annual growth rate in revenue for two quarters in a row.
TCS had been lagging behind the Nasdaq-listed IT services major in terms of growth rate for quite some time now, but in the first six months of 2018, the tables have turned.
During the three month period between April and June of 2018, TCS reported a revenue growth of 10 percent year-on-year (YoY) while it was 9.2 percent for Cognizant. Prior to this, in the period between January and March of this year, TCS reported a growth of 11.7 percent while it was 10.3 percent for Cognizant.
Cognizant has consistently beaten TCS over the last couple of years in terms of annual growth rate in revenue, and this is the first time that it has shown a lower growth rate.
However, there is a considerable revenue difference between the two IT majors, with TCS being ahead by little over one billion dollars in each quarter over Cognizant.
Among the top tier IT services companies from India, which include the likes of Infosys, Wipro and HCL Technologies, Cognizant has managed to retain a double-digit growth in revenue, or close to it, while compared to its Indian peers. Though headquartered in Teaneck, New Jersey, Cognizant is very much like other Indian IT services companies with over 70 percent of its employees based in India.
On the financial performance of Cognizant for the April to June period, Francisco D’Souza, CEO, had said, “As our second-quarter results confirm, we’re making solid progress on our plan to accelerate our shift to digital services and solutions. We’ve been methodical in developing, aligning, and applying our portfolio of skills, services, and solutions to clients’ needs, so they can become fully digital organisations. And we remain confident in our ability to invest for growth and achieve our financial targets.”
Cognizant currently has a headcount of 2,68,900, which is the second highest after TCS.
The pecking order among the top tier Indian IT services companies also saw some change with HCL overtaking Wipro in terms of overall revenue recently.