CNBC TV18: Cognizant’s Group Chief Executive for Technology and Operations Says the Company’s Growth is Related to Long-Term Investments

“Our growth is related to both market and company-specific investments,” says R Chandrasekaran. “We have a significant presence in the U.S. and we see increased consumer confidence. Customers are wanting to invest more in creating newer software platforms to address their own market needs. That generates significant discretionary spend though there is no budgetary increase.”

A bulk of these investments, he says, are funded through cost-savings that customers derive from working with Cognizant on the outsourcing side of the business. “We see increased share of discretionary spend generating demand; that is good for Cognizant,” he notes. “That was good in Q2 and that is likely to be good for the rest of the year too.”

He adds that Europe is a very important market for Cognizant. “We are not in for short-term gains. We want to stay invested in that market for long term opportunities and that is what we are seeing in terms of growth. We have been very aggressive in terms of investing in Europe,” he says.