Comparing Q3 revenue performance of Infosys and TCS

Infosys revenue based on industry verticals in Q3 2015-16
IT services providers Infosys and TCS announced their financial results for the third quarter ended December 31, 2015.

InfotechLead.com is sharing the comparison between the financial result of the two rivals in the IT outsourcing market.

Bangalore-based Infosys said its third quarter revenue rose 8.5 percent to $2,407 million, while profit growth was flat at $524 million.

For comparison, the third quarter revenue of TCS grew 5.4 percent to $4,145 million, while profit increased 6.07 percent to $926 million.

Main industry verticals

Infosys today said it generated 33.5 percent revenue from Banking & Financial Services, Insurance, 22.8 percent from Manufacturing, 24.3 percent from Retail & Life Sciences and 19.4 percent from Energy, Utilities, Communications & Services.

TCS said it generated 40.5 percent revenue from BFSI, 13.4 percent from Retail & Distribution, 10.1 percent from Manufacturing, 8.9 percent from Telecom, 6.4 percent from Life Sciences & Healthcare, 5.9 percent from Hi-Tech, 4.2 percent from Energy & Utilities, 3.5 percent from Travel & Hospitality, 2.7 percent from Media & Entertainment and 4.4 percent from other industry segments.

TCS revenue break up in Q3 2015-16

What is the digital revenue of Infosys?

TCS CEO N Chandrasekaran said the company generated 13.7 percent of its revenue from digital business. Infosys did not mention anything about digital wins.

Vishal Sikka, CEO and MD of Infosys, said: “Alongside grassroots innovation, we continue to see growing adoption of our Aikido services, bringing the power of intelligent systems, automation and software to amplify the skills and imaginations of our people.”

Infosys has increased revenue guidance for fiscal 2016 to 8.9-9.3 percent in USD terms. TCS does not share revenue guidance.

Hiring

Infosys had 1,93,383 employees till December 2015, while TCS had 344,691 resources.

Gross addition of employees at Infosys was 14,027 in Q3, while gross addition at TCS was 22,118 people. The net addition of resources at Infosys was 5,407, while net addition at TCS was 9,071 employees.

Employee attrition at Infosys was 18.1 percent against attrition of 15.9 percent at TCS.

Focus areas

Infosys generated 62.5 percent revenue from North America, 23.2 percent from Europe, 2.8 percent from India and 11.5 percent from the rest of the world.

On the other hand, TCS generated 51.9 percent revenue from North America, 2.1 percent from Latin America, 16.1  percent from UK, 11.7 percent from Continental Europe, 6.5 percent from India, 9.7 percent from Asia Pacific and 2 percent from MEA.

Infosys acquisitions

Infosys says it completed the acquisition of Noah Consulting, a provider of information management consulting services for the oil and gas industry. Infosys invested in WHOOP, an early stage company that offers a performance optimization system for professional sports teams. It also invested in CloudEndure, a startup that provides Cloud Migration and Cloud-based Disaster Recovery (DR) software.

Infosys client wins

ALSTOM, a provider of rail transport, selected Infosys for services in application engineering, development and maintenance, in addition to product lifecycle management to reduce IT costs, improve user experience, and increase the efficiency of the product design process.

MRJ90, the flagship aircraft of the Mitsubishi Aircraft, Japan (MITAC) recently completed its maiden test flight. Infosys helped MITAC in the mechanical design of fuselage structures, delivered continuous improvements through automation, and reduced both the cost and cycle time.

Mercedes Benz Research and Development Center, India, has partnered with Infosys to run its data center and network operations support in 15 countries across the APAC region, increasing agility and automation and reducing cost of operations.

TCS does not share specific details on client wins.

Baburajan K
[email protected]