In Q4, Cognizant set to hire 45,000 freshers in India

The US-based company, which posted a net income of $348 million in September 2020 quarter, said the talent demand-supply imbalance in the industry remains “particularly acute” and that its third quarter voluntary attrition inched up to 33 per cent on an annualised basis, or 24 per cent on a trailing 12-month basis. 

Cognizant’s revenue was about 12 per cent higher at $4.7 billion in the quarter as against $4.2 billion in the year-ago period. It had forecast its third quarter revenue to be in the range of $4.69-4.74 billion (a growth of 10.6-11.6 per cent or 10-11 per cent in constant currency). Cognizant - which has about 2 lakh employees based in India - follows January-December as financial year. “We executed well in the third quarter, delivering revenue of USD 4.7 billion, up 11.8 per cent year-over-year or 11 per cent in constant currency. Bookings growth, a key leading indicator, accelerated to 24 per cent y-o-y growth in the third quarter,” Cognizant CEO Brian Humphries said during the investor call. 

He added digital revenue grew 18 per cent y-o-y in the third quarter, and represents 44 per cent of Cognizant’s overall revenue mix. “We expect this percentage to grow in future periods, positioning Cognizant for both top-line momentum and margin expansion. Moreover, the intimacy of our C-suite engagement increases as we serve clients in their digital transformations,” he said. 

The company expects its fourth quarter revenue to be $4.75-4.79 billion, which translates into a growth of 13.5-14.5 per cent (13.3-14.3 per cent in constant currency). For the full year, the revenue is forecast to be about $18.5 billion, a growth of 11.1 per cent (9.8 per cent in constant currency). Cognizant’s headcount stood at about 3,18,400 people at the end of the September 2021 quarter, up from about 3,01,200 employees at the end of June 2021 quarter. Humphries added in the fourth quarter, Cognizant expects to make offers to 45,000 new graduates in India for onboarding in 2022.