Cognizant to pay hikes to eligible workers in August: CEO

Cognizant Expertise Options, the US-based expertise firm with a big presence in India, can pay hikes to eligible workers in August. The corporate’s CEO S Ravi Kumar stated earlier it was introduced that in August the pay hikes will likely be performed. It stays so, he instructed newspersons whereas discussing the corporate’s March quarter monetary outcomes.

The corporate deferred the hike by practically 4 months as in comparison with the earlier April 2023 cycle.

Worker Metrics

Whole headcount on the finish of the primary quarter was 3,44,400, a lower of three,300 from This fall 2023 and a lower of seven,100 from Q1 2023. “Compared to the dimensions we’re, the numbers haven’t fallen as a lot as in comparison with our friends. In our case, we had a bit of extra room on worker utilisation. We added headcount within the final two quarters,” stated Kumar.

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“This was 1 / 4 to strengthen our operational metrics. Utilisation went up from 81 per cent to 82 per cent this quarter and continues to step up by 1 or 2 share factors earlier than we return and begin to rent. We’ve got some capability inside to proceed to care for our short-term wants. As sturdy progress comes again, we’ll begin to search for the headcount. At this level of time, we received to the numbers of this quarter by bettering the utilisation and servicing our shoppers,” he added.

Voluntary Attrition

Tech Providers on a trailing-twelve months foundation was 13.1 per cent as in comparison with 23.1 per cent for the interval ended March 31, 2023, the corporate stated.

Kumar stated first quarter bookings on a trailing 12-month foundation had been $25.9 billion, a rise of 1 per cent year-over-year. Whereas there may be good, sustained traction with our giant offers, we noticed softness in smaller offers within the vary of 0 to 10 million whole contract worth, reflecting the tight discretionary setting.

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“Our robust deal momentum within the quarter was evidenced by the very fact we signed 8 offers every with a complete contract worth (TCV) of $100 million or extra, in comparison with solely 4 within the prior yr interval. We’ve got additionally seen early inexperienced shoots in our efforts to diversify our giant offers exterior of North America. And in quarter one, two of the 8 better than $100 million contracts we signed had been within the APJ area,” stated Kumar. “We proceed to develop our pipeline for bigger offers and make progress in opposition to the objective of accelerating the worth of enormous offers in our bookings,” he added.

“We had been sequentially flat however stored the complete yr steering intact. We guided for the second quarter equal to 0-1.50 per cent sequential constructive. In a troublesome financial setting, we managed to ship good outcomes a lot above the higher finish of the steering,” he stated.