It’s all looking up for the US this week. New figures show manufacturing activity is growing at its fastest pace since April 2011. Analysts have braced themselves for better than expected jobs data on Friday. Oh – and Indian IT outsourcing companies are funnelling money into the country. Read more
Francisco D'Souza, Cognizant CEO
Having overtaken Infosys to become India’s second ranked IT outsourcer by revenue, where next for Cognizant? The company produced strong results on Tuesday, buoyed by robust demand in the US, but chief executive Francisco D’Souza says the company is now setting its sights further afield — with plans for acquisitions in Asia.
Tuesday’s third quarter figures saw Cognizant increase revenues 22 per cent year-on-year and reveal higher full-year guidance — earning a 3 per cent market bump for the company, which is headquartered in New Jersey but employs almost all of its workers in India. Most of that increase will come from clients in the US, where Cognizant makes nearly 80 per cent of its sales, but Mr D’Souza says his group is also planning to increase its investment in less familiar markets.
For some months now Cognizant Technology Solutions, the US company which operates mostly in India, has been providing stiff competition for the big names in Hindustani IT services.
But following a string of unexpectedly good earnings reports from the likes of Infosys and Wipro, Cognizant published its figures on Thursday. And this time, it’s not so far ahead. Read more
In a widely expected move, Cognizant Technology Solutions – which is based in the US but operates mostly out of India – overtook Infosys as the IT industry’s second-biggest company by revenues, according to results for the quarter ended in June.
Analysts said such expectation-beating numbers have come to be, well, expected from Cognizant – to such an extent that when it merely meets expectations its stock falters – so there were few surprises contained in the results. Read more