Infosys Limited or Cadence Design Systems, Inc.: Who Manages SG&A Costs Better?

Managing SG&A Costs: Infosys vs. Cadence Design Systems

In the competitive landscape of global business, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. From 2014 to 2023, Infosys Limited and Cadence Design Systems, Inc. have shown distinct strategies in handling these costs. Infosys, a leader in IT services, consistently reported higher SG&A expenses, averaging around 1.32 billion annually. In contrast, Cadence, a pioneer in electronic design automation, maintained a more modest average of approximately 648 million, nearly half of Infosys's expenditure.

Despite the higher costs, Infosys's SG&A expenses grew by about 51% over the decade, while Cadence saw a sharper increase of 79%. This trend suggests Cadence is investing more aggressively in administrative and sales functions, potentially to fuel growth. As businesses navigate the post-pandemic economy, these insights into cost management strategies offer valuable lessons for optimizing operational efficiency.