Financial Chronicle: Cognizant India’s Executive Vice Chairman Says the Company is Optimistic About the Evolving Market Opportunity
 |
“We delivered solid performance for the second quarter with $2.52 billion revenue, which is at the mid-point of our guidance range,” says R. Chandrasekaran. “We have announced an expansion of our existing share repurchase program to $2 billion. Our business remains healthy, as underscored by our expectation to grow at 14 per cent, while maintaining our non-GAAP EPS. We ramped up hiring during the quarter with approximately 8,800 net new additions, our highest net addition since the third quarter of 2011, reflecting our long-term growth expectations. We won three large transformational deals that together bring in $3.5 billion in contract value.” Excerpts:
“We believe that the near-term, client-specific impacts that we are experiencing are not a reflection of the market environment or our approach to the broadening market. We remain confident in our strategy and long-term prospects, and optimistic about the evolving market opportunity ahead of us.
The demand environment remains healthy, as evidenced by our recent strong win rates and robust current pipelines. This is consistent with industry studies on outsourcing award trends, which indicate that companies are outsourcing more and becoming increasingly technology-centric. Faced with the once-in-a-decade technology shift driving fundamental changes in the business environment, clients are looking to address the dual mandate to “run better” by improving efficiencies as well as “run different” by driving transformation and innovation to position themselves for the future.
This is manifest not just in the growing importance of integrated solutions, but also in how technology is becoming a strategic C-level agenda item beyond the CIO and how SMAC is enabling clients to become digital businesses in an increasingly hyper-connected world. To remain competitive, they are looking to re-imagine and re-design business models.
Winning and delivering the kind of large transformational deals we announced today require a broad range of integrated capabilities in which we have been investing over many years — a strong consulting front-end, solid client-facing skills, deep domain knowledge, and at-scale capabilities in technology and operations. Behind deals like these lies a deep sense of trust that our clients place in us — trust that comes from multi-year relationships and deep levels of engagement within our clients’ organizations.”
Click here to read more.