Cognizant, one of the world’s leading professional services companies, yesterday has announced its second-quarter 2021 financial results.
- Revenue of $4.6 billion grew 14.6% year-over-year (12.0% in constant currency(1))
- Digital revenue grew approximately 20% year-over-year
- $1.5 billion deployed on acquisitions, share repurchases and dividends year-to-date
- 2021 revenue growth guidance increased to 10.2-11.2%, or 9.0-10.0% in constant currency
Announcing the results, Brian Humphries, Chief Executive Officer said, “We delivered a strong second quarter,”
“Through targeted investments, we’ve been shifting our portfolio to faster-growing market segments while extending our capabilities and partnerships to help clients build modern businesses. I see a stronger, more competitive Cognizant emerging, with growing commercial momentum. We are bullish on the industry and our prospects within it.” he added.
The company has reported very high attrition of 31% in the second quarter, which is also higher than its first-quarter attrition of 21%, and 19% in the previous quarter Q4 FY20.
According to ET report, currently, the US-based IT major has the highest attrition among its peers in India. For the quarter ended June, TCS reported attrition at 8.6%, Infosys at 13.9%, Wipro at 15.5%, and HCL Technology at 11.8%. Accenture had reported 17% attrition in the March to May quarter.
CEO Brian Humphries said, “The company will hire 1 Lakh experienced professionals in 2021 and upskill close to 1 Lakh associates to deal with attrition challenge”
“We expect to onboard approximately 30,000 fresh graduates in 2021 and make 45,000 offers to fresh graduates in India for 2022 onboarding,” he added.
The company raised its 2021 revenue growth guidance to 9-10% in constant currency from 5.6-7.6% it had guided earlier as the business is picking up especially in the digital transformation space. Cognizant, which follows the calendar year, expects revenue for the September quarter to grow 10-11% in constant currency in the range of $4.69-4.74 billion.