The dynamic IT industry has witnessed many companies getting established in the IT race, but these two giants i.e. TCS and Infosys, have been leading in the game. However, these two big names are also relatively great competitors of each other. It’s been a debatable topic of deciding who is doing better or which one is ruling the IT sector between TCS vs Infosys.
TCS Company Profile
A subsidiary of Tata Group. TCS stands for Tata Consultancy Services, the largest IT company in India, and one of the the top 10 IT companies in the world. TCS is a global player in providing IT services, consulting, business solutions, network solutions, data & analytics, etc. Founded in 1968.
It played a pivotal role in shaping India’s IT space and has contributed well in making India’s technology hub. TCS is the largest IT company in India with a market cap of Rs.12.7 trillion.
This Indian multinational company which is headquartered in Mumbai, Maharashtra, India, is currently serving in more than 46 countries and operates in 150 locations. Its extensive network of service delivery centers and offices caters to a diverse client base worldwide.
TCS has been recognized for its commitment to innovation. The company is investing highly in research and development to stay at the forefront of technological advancements. TCS not only excels in providing IT services, but also delivers great services in other domains too like cybersecurity, data & analytics, consulting, health & wellness, etc.
Infosys Company Profile
The second largest IT company in India. Established in 1981 by Mr. Narayana Murthy. As of 2023, the company is serving in across 56 countries in over 274 locations. Infosys boasts a market capitalization of Rs.6 trillion and has been in second place in the largest IT companies in India.
Infosys has a significant global footprint, with offices and delivery centers spread across multiple locations. It serves a good amount of client base in various industries like development, maintenance, IT services, consulting, etc.
Infosys places a strong emphasis on innovation and research. The company keeps on investing in emerging technologies and startups and drives purposeful and strategic solutions that are in favor of their clients. Infosys is one of the top companies and has been in the list of top 100 World’s Best Companies.
Market Capitalization of TCS Vs Infosys
Being the largest leaders of the IT sector in India and best among others globally, these two giants have an impressive tale of market capitalization over the years.
For 2023, TCS boasts an impressive number of market capitalization i.e. Rs.12.7 trillion (Rs.1270000 crores), a higher number for any IT company in India. Whereas, Infosys ranks second in the list in India with a market cap of Rs.6 (Rs.600000 crores) trillion, however it was a less number recorded as compared to previous year market capitalization of Infosys.
Revenue of TCS Vs Infosys
While both the companies have a good number of market capitalization, they also excels in revenue growth over the years.
| Year | TCS (Tata Consultancy Services) | Infosys |
| 2023 | Rs.225,458 crores | Rs.146,767 crores |
| 2022 | Rs.191,754 crores | Rs.121,641 crores |
| 2021 | Rs.164,177 crores | Rs.100,472 crores |
| 2020 | Rs.156,949 crores | Rs.90,791 crores |
TCS is leading in the race of revenue earning with boasting an impressive number of Rs.225,458 crores, higher than the Infosys revenue, which is Rs.146,767 crores. Both the companies have witnessed an increase in their revenues over the years, with TCS leading at the forefront.
| Revenue Growth Percentage | 2023 | 2022 | 2021 | 2020 |
| TCS % | 17.58% | 16.79% | 6.60% | 7.20% |
| Infosys % | 20.66% | 21% | 10.7% | 9.80% |
Note: Do visit the article Tata Elxsi Business Model.
Profitability Difference of TCS vs Infosys
Profitability factor encompasses various aspects like market demand, valuation, economic conditions, cost management, etc. profitability is a key indicator of a company’s financial performance and health.
| Year | Profitability | |
| TCS (Tata Consultancy Services) | Infosys | |
| 2023 | Rs.42,147 crores | Rs.24,095 crores |
| 2022 | Rs.38,237 crores | Rs.22,110 crores |
| 2021 | Rs.32,430 crores | Rs.19,351 crores |
| 2020 | Rs.32,340 crores | Rs.16,594 crores |
TCS has a higher profitability number than Infosys. For the current year i.e. 2023, TCS has recorded doubled revenue of Rs.42,147 crores than Infosys’s revenue Rs.24,095 crores. While both differ in operating margin. However TCS company for FY24 is also working on the idea of lowering the subcontractor expense.
| Operating Margin % | 2023 | 2022 |
| TCS | 25.24% | 25.3% |
| Infosys | 21.1% | 23% |
TCS has a slight change in its operating margin as compared to its last year percentage, however Infosys, recorded a lower operating margin for the year 2023 than the previous year’s operating margin.
Brand Value Difference
Brand value is the estimate of the total value of the brand, the worth of the brand, its operating process, its logo.
TCS as of latest 2023, has a brand value of $43 billion, maintaining its top position in the row. While Infosys followed the list and ranked at second place with the brand value of $13 billion. While the other companies like HDFC, Airtel, and State Bank of India, followed the list.
Active Client Base – Infosys has 1,883 active client base, it is higher as compared to its last year 2022 active client base of 1,778. While the number of active client base of TCS remains undisclosed.
Which One Is Ruling The IT Industry: TCS vs Infosys?
Both the companies are giving a rough tough competition to each other.
It has been observed that TCS is currently ruling the IT industry, as it is leading in the race and has been at the forefront with its higher market capitalization of Rs.12.7 trillion than Infosys which has a market cap of Rs.6 trillion.
Not just in terms of market capitalization, TCS maintains its top position in other categories too, be it the revenue generation, margins, brand value, profitability, etc.
