How would you sum up this quarter’s performance? Has deal momentum increased?
Brian Humphries: I would categorise this quarter as a solid one. We executed well in a challenging environment and outgrew every single major competitor globally on a constant currency basis. We exceeded Wall Street expectations on revenue and margins and increased our guidance for 2020. We have good momentum with bookings up 25% in the quarter.
Rajesh Nambiar has just been appointed as Cognizant’s managing director for India. Any immediate goals he has been tasked with?
Brian Humphries: Rajesh starts in the coming few weeks. It is a more senior role, much more elevated than the prior position and he is reporting to me directly. Therefore, he will be the executive committee representative of nearly 200,000 associates in India. Externally, he will help strengthen the brand position in India, enhance the relationships with government bodies, universities, media and policy making bodies like Nasscom.
The company is planning bigger salary hikes and promotions in the fourth quarter, compared to the same period last year. Why this decision during a challenging year?
Brian Humphries: We are pleased that we are entering Q4 executing increased promotions, and we are accruing bonuses at substantially higher levels than last year. This reflects frankly on the improving financial performance as well as the continued engagement and commitment of our employees who worked very hard to help us in a very challenging year.
Is the worst over for retail, travel and consumer segments? They have seen some decline in the quarter...
Brian Humphries: A lot depends on the evolving macroeconomic situation that we are faced around the world. The good news for Cognizant is that those portions represent only 10% of the company and that’s why we have been able to outgrow competitors. We are in a position of strength in industries like healthcare where we are executing very strongly.
The cost savings goals under Cognizant’s ‘Fit for Growth’ plan seem to be completed. Does this mean that employee pyramid correction actions are also done?
Brian Humphries: Yes. I would say for the most part now we are focussed on commercial transformation and continuing to invest in the business. We have taken that and put it behind us and have come out with employee engagement levels that are at multi-year highs. Voluntary attrition is down five quarters in a row, we are very much investing in talent, digital, we are building out our commercial team and building out our bench. We are also investing in marketing and branding.
All technology companies say they will see a multi-year growth period. Is this reflecting in your deals as well?
Brian Humphries: I think the major thing that is happening at this time, is Covid-19 – both the opportunity and threat it creates. The pandemic has really widened the divide between the digital natives and the legacy economy companies which have really struggled to shift to a fully digital operating model. Our commitment behind digital is really fueling our growth. Digital now is over 40% of our business. Our deal mix has actually increased to larger deals. We are standing to benefit well from vendor consolidation.
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3 Comments on this Story
H1b Talks32 days ago
Do any one know last year hike is $0 ?. People working here without hike for last 2 years.
Koushik Paul33 days ago
This cheap stake company now trying damage control after kicking out thousands from job a few months back.
Valerian Pereira34 days ago
make india the hub of Artificial intel.