Economic people are interestingly watching the software war between the globally recognized multinational companies, Infosys and Cognizant(CTS).
As Mr. N.R Narayana Murthy's Infosys innings came to an end, he referred to Infosys in his latest AGM will stay in the number two position for some more years.
When we observe the revenues of Infosys and CTS, we get a clear idea.
The revenues of Infosys in FY 2011 increased 25.80 percent to $6.0 billion, at the same time the revenues of CTS increased 40% to $4.6 billion.
If the 2 companies grow at the same pace, there is a possibility that- mathematically at least- Cognizant will overtake Infosys in FY 2013. (See the graph for more details)
If we assume the rate of growth of Infosys be 25.8 percent for the next three years, then by 2013 the revenues will be $11.8 billion.
At the same time if we assume the rate of growth of CTS be 40 percent for the next three years, then by 2013 the revenues will be $12.5 billion.
But I think this will not pan out in reality. It will be really a tough task for CTS to maintain compound annual growth rate of 40 percent. So to beat Infosys, CTS would have to diversify into other verticals and enter new geographies.
At the same time Infosys wants to get more from transformational projects and consulting. If they succeed, they may be able to step up the momentum. Infosys has strategic plans and it will not easily concede the No. 2 spot to cognizant.
Regards Hari " लोका समस्ता सुखिनो भवन्तु "
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