Cognizant Makes BIG Announcement on Hikes and Promotions; CEO Shares Details! 

Amid the pandemic and global crisis, IT major Cognizant Technology Solutions’ revenue will come at the high end of its previously guided range of $16.7 billion in the ongoing fiscal year.  

In a recent interview with Economic Times, CEO Brian Humphries said the rise will implement merit-based hikes and promotions in the fourth quarter.

The company is all set to join its peers such as TCS, Infosys and Wipro as more clients adopt digital and migrating to cloud.

As per Times Now report, Cognizant's revenues for the third quarter topped analyst expectations and the company also reaffirmed its revenue guidance at the higher end of guided range, which is approximately $16.7 billion. It had earlier projected full-year revenue guidance of $16.4-16.7 billion. 

"Against a challenging demand environment, we continued to strengthen our portfolio, execute our digital strategy and increase competitiveness. We are creating 2020 bonuses at higher levels than 2019. We're also implementing targeted merit-based increases and promotions in the fourth quarter," Cognizant CEO Brian Humphries said. 

Getting into details, the revenue for the third quarter came in at $4.2 billion and includes a 250 basis points contribution from acquisitions. Meanwhile, the revenue also includes a negative impact of 130 basis points due to the exit of content related services. Its biggest vertical Financial Services declined by 2.2 percent, while Healthcare grew 4.2 percent.

However, the company's operating margins came in at 14.2 percent due to higher incentive-based compensation. Looking into the quarter ended September, Cognizant reported a quarterly annualised attrition of 18 percent, among the highest in the industry.