Thanks to the robust financial performance in the last five quarters, Tata Consultancy Services has moved to a different league with the gap in quarterly revenue between TCS (the leader) and Infosys widening considerably.
A high ranking official of a competitor observed that TCS has become a ‘super tier I software vendor' while others are ‘tier I vendors.'
In the last five quarters, the gap in revenue between TCS and Infosys has been increasing quarter-on-quarter.
For instance, in December 2010 quarter, the difference in revenue between TCS and Infosys was $559 million. This difference has increased gradually to $780 million in December 2011 quarter.
“Yes, the growth of TCS has been mindboggling,” said an official working with one of the competitors of TCS speaking on condition of anonymity. “It is going to be very difficult for others to catch up,” he said.
Mr Sudin Apte Principal Analyst & CEO, Established Thought Leader in Offshore, Outsourcing and IT Services at research firm Offshore Insights, said the changes that TCS brought about in the last two years have paid rich dividend. TCS brought in a young management team, and invested heavily on global sales force facing the clients directly and on improving productivity across the organisation.
However, for TCS to maintain the lead, it has grown much faster every quarter. This is going to be a challenge, he said.
Mr Apte feels that TCS and Cognizant are emerging as leaders in the industry.
Mr Partha Iyengar, Vice-President, Distinguished Analyst, Regional Research Director at Gartner, commenting on the financial results of TCS and HCL said that their results reinforce the message that the overall health of the global sourcing industry is strong.