In Q2, Cognizant reported income of $4.85 billion and headcount of 336,300, down by 8,100 from Q1 2024 and by 9,300 from Q2 2023. A majority of the staff are primarily based in India.
“We sequentially dropped by 8,000-odd folks and year-on-year dropped by 9,000 folks, however we sequentially (income) grew by 2 per cent. This gave a robust increase to the working margin. It got here on the again of worker utilisation and the applying of automation and synthetic intelligence,” he informed mediapersons. “We’re persevering with to use automation and AI; pop up the utilisation and have sequential development, which, if continues, the worker addition will begin taking place,” he added.
Kumar additional defined that when the headcount falls, it implies that when folks go away the corporate voluntarily, you don’t must fill in. If there may be headroom on utilisation, you can proceed to extend quantity development by bettering utilisation, he mentioned.
“We had headroom in utilisation enchancment and we leveraged it. If we’ve got automation and software of AI, you are able to do tasks with much less headcount and proceed to develop. Successfully, we grew 2 per cent sequentially with decrease headcount,” he mentioned.
Deal worth
Jatin Dalal, CFO, Cognizant, informed analysts, “We nonetheless have some headspace for positive, as we exit quarter two. That is the third quarter of enchancment in utilisation. We’re persevering with to enhance it. We now have some house. I wouldn’t say it’s a major house. We’re managing the availability chain with that visibility of headspace and the demand which is coming within the door. We’re assured that we will handle the demand and provide chain equation nicely, as we execute by the second half of the 12 months.”
On offers, Kumar mentioned that along with the 5 offers, every with whole contract worth (TCV) of over $100 million, Cognizant signed two offers that had been above $90 million every. “Within the first half of this 12 months, we’ve got signed 13 offers, every with TCV of over $100 million, nicely forward of our 2023 tempo, which included 17 offers of this measurement for your entire 12 months,” he mentioned.
GenAI enterprise
On GenAI, Kumar mentioned that, over the previous few quarters, the corporate has change into extra deeply concerned in shoppers’ GenAI journeys. As of finish June quarter, the corporate has over 750 early shopper engagements, up from 450 in Q1, and over 600 alternatives within the pipeline, in comparison with 500 final quarter. These early engagements are throughout verticals with wholesome exercise in merchandise and sources together with monetary providers and well being sciences, he mentioned.
“We’re seeing demand throughout 4 key areas: buyer and worker expertise; content material summarisation; content material technology; and, lastly, tech-for-tech to speed up innovation and know-how improvement cycles,” he mentioned.
Cognizant is constructing a robust partnership ecosystem to help its GenAI technique, he mentioned. Within the June quarter, it was chosen as an AWS GenAI competency accomplice primarily based on its capabilities in addressing complicated business issues and experience in AWS-specific GenAI options. Cognizant additionally signed a collaboration settlement with AWS to convey to market good manufacturing options powered by GenAI and rework manufacturing operations throughout industries, he informed analysts.
Dalal informed mediapersons that the corporate would roll out a wage hike from August 1.
#leveraged #headroom #employees #optimisation #Cognizant #CEO #Ravi #Kumar