Cognizant, one of the world’s leading professional services companies, today announced its first-quarter 2022 financial results. The company grew 11.5% on year to $563 million along with 10.9% increase in constant currency revenue growth.
The company follows a January to December accounting year.
“Thanks to our talented employees, we delivered on our first quarter commitments in what is an intensely competitive global labor market,” said Brian Humphries, Chief Executive Officer.
He added, “While the economic backdrop is uncertain, we remain optimistic about the demand outlook for our solutions. Our strategic repositioning enables us to engage more deeply with clients, helping them succeed, and supports our growth trajectory.”
Despite the volatility in the employment situation in the US, Cognizant managed to bring down its attrition rates in the March quarter. The company reported an attrition rate of 26% for the January to March quarter down from 31 per cent for the last quarter.
“While we made sequential progress reducing voluntary attrition for the second consecutive quarter, we anticipate attrition will remain elevated for the full year and will increase in the second quarter, reflecting seasonality,” CEO Humphries said in the earnings call.
As the attrition rates came down, Cognizant has added less number employees i.e 9,800 on a quarterly basis in Jan-Mar as against 12,200 in the previous quarter.
On a yearly basis, Cognizant added 43,900 employees, which is way less than any of the Indian IT peers and less than half of that TCS hired in 12 months.
“Starting from April, we shifted from an exception-based return-to-office approach to one that makes it easier for our teams to work from an office. As space permits, and on a voluntary basis, employees will be welcome to work from an open office to collaborate face-to-face with their colleagues and teams.” said the company on its return to office plan.
The company added, “Many employees will continue to work from home, although client and business requirements will determine the need to work from a Cognizant or client office.”
“By the end of the year and into early 2023, we expect to fully transition to the hybrid work model as our long-term state. Across the hybrid model, employees will work a set number of days from the office. Their number of days in office versus remote will vary based on the kind of work they do and client requirements.” It said in a statement.
