Analysts at brokerage firms today said the transition and exit of key managers at Infosys and Wipro and the economic slowdown have separated the leaders from the laggards in the IT industry nearly halfway into the 2011-12 financial year.
“A clear separation between the leaders and laggards is emerging, with Tata Consultancy Services (TCS) and Cognizant racing ahead of Infosys and Wipro. This polarisation becomes even more visible during a slowdown,” said an analyst at a multinational brokerage firm.
JP Morgan analysts, Mr Viju K. George and Mr Amit Sharma wrote in a report last week that the downturn is causing further separation among the top four technology firms in the country.
The transition period at Infosys and Wipro has given TCS and Cognizant the opportunity to increase their lead, they said.
“Infosys and Wipro are no longer the leaders because there is a transition at the top level... Banker, Mr K.V. Kamath, has just assumed charge at Infosys and Wipro has sole boss Mr T.K. Kurien after the company decided to abandon its co-CEO model,” said another analyst at a brokerage firm.
In 2001-02, for instance, TCS, Wipro, Infosys, Cognizant and HCL broke away from the pack and formed the new top order.
Later, the 2008 Lehman crisis led to Wipro falling behind and Cognizant surging ahead, the analysts said.