Cognizant sees India as an attractive market, will continue investments
New Delhi: US-based IT major Cognizant Technology Solutions Corp. has said strong growth in digital services and infrastructure make India a very “attractive” market and it will continue to invest in the country. Cognizant, which has about 75% of its 2.56 lakh workforce in India, had recently said it is ramping up utilisation rates by slowing down pace of hiring and improving resource alignment.
It had also offered a voluntary separation package to senior executives in the US and India, which was accepted by about 400 people. “It (India) is one of our fastest growing markets there’s always conversation about India’s infrastructure, I think digital infrastructure is as important if not more. “I think it is a very attractive market and we are going to continue to invest in it,” Cognizant Executive Vice President, Strategy and Marketing, Malcolm Frank told PTI.
He, however, did not give any specific details of the investments. Cognizant does not disclose country-specific revenue but rest of the world (including India) segment accounted for $240 million or 6.5% of its $3.6 billion revenue in June quarter. North America contributed $2.8 billion, while that from Europe stood at $579 million.
Frank -- who recently co-authored a book titled ‘What to do when machines do everything’ -- said the focus for IT services firms should be on clients’ requirements in the dynamic environment and how to deliver them in the most effective manner. “Issue around jobs, nationalism, what’s happening with certain governments around the world, those winds will always blow, strong sometimes, sometimes they go away. That’s a context we have been dealing with the last 20 years,” he said.
Frank added that companies will need to invest heavily on skills and work closely with clients on their vertical- specific requirements to help grow their business. Asked about acquisitions, he said Cognizant will look at targets for specific capabilities and not capacity.
“We can pivot and train people internally, and we can hire directly. The issue is finding specific capabilities, be it in a particular industry, a service line or technical capability. That is what we are truly looking for,” he said. He added that the company will not shy away from a large acquisition if it was a value-add to the company.
On where he sees Cognizant five years from now, Frank said: “We want to be a firm that is contributing to society for digital that matters. On the demand side, we help clients do great things and on the supply side, we become an employer of choice. That is really where we want to be in five years.”