Cognizant Witnesses Income Growth In Spite Of Drop In Headcount
Revenue of Cognizant increased 10% last year even as its labor force dropped by 200 as compared to a year ago. This happened for a first time in the history. This is a performance that analysts claimed that the remaining of the IT segment is working hard to imitate. IT firms, whose development classically marches parallel to the headcount increment, have been speaking of decoupling the 2 factors for years but Cognizant is the initial firm to display results over a complete yearly reporting timeframe. The New Jersey-located company reports outcomes for this year, while IT services firms of India after a reporting period from.
“As the market shifts to the technology-supported digital model from the labor arbitrage factory framework the income per person increases and fewer individuals are required,” claimed CEO of IT consultancy Everest Research, Peter Bendor-Samuel, to the media in an interview. “Cognizant is one of many companies working hard into the new digital sector and this effort is displaying outcomes both in their improved revenue per person and increased growth along with dropping headcount,” he claimed. At the end last year, headcount of Cognizant stood at 260,000 workers.
Indian IT firms such as Wipro, Infosys, and Tata Consultancy Services have displayed decrement in their headcount figures, but their yearly numbers will be obtainable only in April. Over the last 3 quarters, TCS and Infosys have displayed chronological decrement in their headcount in addition to the marginal increment in their income.
“What we are lastly beginning to witness with IT firms, and the service operator community more usually, are the symptoms of an evolution away from legacy delivery frameworks,” director at HFS Research for IT services research, Oliver O’Donoghue, claimed to the media in an interview. This data was also backed by industry analysts as well as sources.