UPDATED 13:30 EDT / JULY 14 2011

Tata Records Strong Q1 Revenue, Infosys Shares Ailing

India’s largest software exporter is on a roll. Following a promising bid on Citrix’ recent acquisition of Cloud.com to expand their data centers globally and service small-scale businesses, Tata Consultancy Services banners a 28% increase in their first quarter revenue reports to Bloomberg. Spikes in profits are observed across all markets, even with the emerging markets. But instead of throwing a party, TCS will continue to confront economic challenges and build cloud infrastructure to offer SaaS to SMBs.

In a statement read on Wall Street Journal, TCS Chief Executive N. Chandrasekaran stressed that the company will not be complacent on pushing their business goals, especially with the ongoing economic tremors globally.

“Though we continue to see steady demand flow for our services, the uncertain global macroeconomic environment demands that we…remain agile to capture growth opportunities as they emerge. The company is negotiating a challenging business environment.”

Meanwhile, the same joy that TCS is now enjoying is the exact opposite of what its rival Infosys is currently hurdling. Their shares in the past three months have been very disappointing— an antecedent of their business falling short in delivering sales expectations, say analysts. The organization is presently undergoing a series of restructuring changes that consist of three phases, along with some major updates to their vertical businesses. Infosys is targeting the end of this month to complete this overhaul. One of the major roadblocks impeding Infosys’ recovery is the visa fraud case that placed their integrity in jeopardy.

Tata and Infosys are living under the same roof—formerly housed in Mumbai, now the other occupies a significant space in Bangalore. With the current situation, Tata’s winning and Infosys is crawling up from its pitfalls, leaving India and its local market shares out of balance. With India rising on the ranks of cloud computing and IT consumerization fields, their hopes now hang with TCS’ not bowing down (anytime soon) to any economic turmoil being experienced worldwide, in unpredictable magnitude.


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