Tata Consultancy Services (TCS) is likely to maintain its leadership position over the next three years backed by a strong and satisfied client base.
IT services giant Cognizant is embarking on a significant AI-led restructuring programme, Project Leap, involving an investment of up to $320 million, which will lead to workforce reductions across geographies and a strategic shift towards AI capabilities to boost productivity and margins.
Cognizant has said it aims to be back among India's top four IT services companies by 2027 by improving revenue, market share, bagging large deals, and gradual margin expansion. The Nasdaq-listed company does a major part of its business in India, but has trailed peers such as Tata Consultancy Services and Accenture over the last few years as growth tapered, margins squeezed, and attrition soared.
The Nifty IT index hit a more than nine-month low, trading at its weakest level since April 17, 2025.
2025 has seen a sharp rise in lawsuits targeting IT services and consulting companies, which now increasingly offer proprietary digital platforms and cloud services.
In the quarter, Cognizant's revenue grew one per cent over the past quarter in North America.
BoA has given formal approval to 15 special economic zones, including those of TCS and Cognizant, and in-principle nod to five, Commerce Secretary and BoA Chairman G K Pillai told reporters after the meeting in New Delhi.
Tata Consultancy Services (TCS), Cognizant and eight other major corporations have been questioned by US Senators for filing thousands of H-1B skilled labour visa petitions after conducting "mass layoffs" of American employees.
Indian-origin tech companies cornered a fifth of all H-1B visas issued by the US with Infosys and Tata Consultancy Services leading the pack, an analysis of data from the US immigration department showed. According to data from the US Citizenship and Immigration Services, in April-September 2024 period, out of the total 1.3 lakh H-1B visas issued to different employers, about 24,766 visas were issued to Indian-origin companies.
Cognizant Technology Solutions has restructured its global growth markets (GGM) by appointing two internal leaders who will now share the responsibility. The move follows the exit of former GGM leader Rob Walker last month and is among the slew of leadership changes the company has seen in the recent past. GGM refers to the company's emerging markets outside of North America.
Though domestic IT majors like Infosys Technologies, Tata Consultancy Services and HCL Technologies painted a gloomy picture of the IT sector in the coming quarters, technology bellwether Cognizant Technology Solutions and Genpact, India's largest Business Process Outsourcing firm, not only posted better results but have also given decent guidance to the markets.
Relative to its competitors such as Infosys, Wipro and TCS, Cognizant's spending on sales and marketing is 50% higher, says an expert.
The Andhra Pradesh government on Wednesday ratified the allotment of 40 acres of land to Cognizant Technology Solutions India Pvt Ltd and 75 acres to Tata Consultancy Services at Adibatla on the outskirts of Hyderabad
Shortly after the twin earthquake-tsunami that hit Japan, Indian IT firms had started calling back employees.
As Nasdaq-listed company indicates poor spending in financial services space, Indian firms feel jittery
Infosys is binding its employees with a contract that forbids them from joining the company's customers and competitors when they quit. Is this fair?
Analysts said the transition period at Infosys and Wipro have given an opportunity to TCS and Cognizant to increase their lead.
To get the best talent, they put stiff riders for recruitment.
Indian American and Indian entrepreneurs believe the West Bengal government, which is projecting the state as an ideal investment destination for information technology and hi-tech industries, has to go a long way before it can become India's number one hub for such industries.
Tata Consultancy Services topped the list of top 10 best performing IT service providers worldwide rated by Global Services, a specialised publication for IT businesses.
Quarterly revenue from Europe rose 35 per cent, the strongest growth since the company started breaking out revenue by region two years ago.
Change of guard and strategy has rejigged the financials and order of top IT companies.
'Cognizant's results indicate that digital related spends can more than offset headwinds in traditional services'
Although the number of resignations came down at Cognizant in April and continued to slow in May, the impact of attrition would play out in the second quarter also because of the longer notice period in India.
The analyst community tracking the Indian IT services industry took special note of Accenture's first quarter (Q1) performance, which showcased the rapid growth of its consulting business that outperformed its outsourcing business. Bookings indicate that the trend will continue. Consulting bookings increased 41.6 per cent year-on-year (yoy) to $9.4 billion, higher than the 17.6 per cent growth in outsourcing to $7.4 billion. The management commentary was also more bullish on the consulting business.
With the rush of growth after the pandemic slowing down, many leaders are moving to firms that may be smaller but are growing much faster and have the headroom to grow.
The country's second-largest software services company, which has trailed peers Tata Consultancy Services and Cognizant on growth, is also looking at weeding out non-performers to improve efficiency.
Deal to bolster firm's position in healthcare IT.
Infosys, TCS, Wipro, Cognizant and Satyam and Bharti Tele-Ventures figure in the elite list.
In tougher times, there seems to be an overwhelming focus on managing the large or anchor clients.
Trouble started brewing after Cognizant announced that Ravi Kumar, former Infosys president, would take over as the Nasdaq-listed company's CEO.
Both companies, along with three others, were suspended in 2010 on grounds of irregularities.
Not only has the gap between Infosys and the market leader Tata Consultancy Services increased in recent quarters, even Cognizant has overtaken Infosys.
Tata Consultancy Services has retained its position as the number one software services exporter (excluding ITeS and BPO) followed by Infosys and Wipro in the Nasscom's Top 20 software exporter list.
Software leaders are quite robust.
Indian IT major Wipro on Saturday announced the resignation of its CEO Thierry Delaporte and named Srinivas Pallia as the new chief executive officer effective immediately. Wipro's Board noted the resignation of Delaporte with effect from April 6, 2024, the company said in a BSE filing, and added he will be relieved from the employment of the company with effect from the close of business hours on May 31, 2024.
Cognizant jumps 13 ranks to become 4th most valued.
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