Cognizant revises guidance upward to 10%: But can it manage growth?

The company has spent $2 billion since 2019 to bolster its cloud and digital play through acquisitions

Shivani Shinde Mumbai

Attrition has been going up for the industry as a whole, and every company is making sure they retain talent and hire freshers from campuses to augment demand

Nasdaq-listed Cognizant made news for its record attrition rate and extraordinary hiring goals even as the company revised its financial year revenue guidance upwards to 9-10 per cent in constant currency basis on Thursday. The information technology (IT) services major, which follows a January-December FY cycle, had earlier projected a growth of 5.5-7.5 per cent for the year.
For the quarter ended June 30, it posted a 12 per cent growth in revenue at $4.6 billion surpassing its guidance of 8.9-9 per cent for Q2. Digital revenue, constituting 44 per cent of the total pie, has grown 20 per cent year on year. The company has spent $2 billion since 2019 to bolster its cloud and digital play through acquisitions. Except financial services, growth for the quarter was broad-based with all verticals reporting a double digit growth year on year.
But, the company’s annualized quarterly attrition at 31 per cent prompted analysts to  question Cogni

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First Published: Jul 29 2021 | 12:51 PM IST

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