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Cognizant to follow new working hours and leave policy from tomorrow

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Cognizant to follow the nine-hour workday model and new leave policy from tomorrow, February 15

Cognizant Technology Solutions is officially moving to the 9-hour workday for the India-based workforce from its current 8-hour working hours.

IT companies determine the Utilization Rate by Total Billable Hours divided by Total Available Hours. A 9-hour workday model would essentially increase the Total Available Hours and decrease the utilization rate.

On managing utilization, Cognizant’s CEO Brian Humphries told analysts, “We are doing some tactical things internally. We have moved our India-based workforce onto a nine-hour workday, which is in line with industry practice. This will result in a reduction of utilization in India, in theory, in the next quarter or so by one to two points. But we will continue to look at utilization and track it and understand how these dynamics play in.”

He added, “The utilization levels are quite high. We are at the stage now that our benches are light and are committed to build that out. We continue to build out our capabilities with evergreen skills and build upon our capabilities such that we can reduce utilization.”

According to Cognizant CEO, the new CTS working hours policy will bring the company on par with its industry peers like Tata Consultancy Services. The company will continue to look at utilization and track it and understand how these dynamics play in.

Cognizant has also enhanced its leave policy and increased the number of paid leaves annually to 36 from 26. “These changes will help the company level the field with competitors in fulfilling client expectations of agile and accelerated development, while significantly improving employee work-life balance,” the spokesperson said.

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