Cognizant Techology Solutions

Slow growth rate and execution challenges impact Cognizant Q4 performance

Nasdaq listed Cognizant Technology Solutions (Cognizant) closed the third quarter with a 2.4 per cent revenue growth.

Revenue was at $4.9 billion, up 9.5 per cent in constant currency on a year-on-year (YoY) basis

For the fourth quarter of 2020, Cognizant''s revenue declined 2.3 per cent to USD 4.18 billion from USD 4.28 billion in the year-ago period

The highest growth in revenue during the quarter came from healthcare vertical which grew 4.8 per cent to $1,231 million

The withdrawal comes on the back of falling client demand, expecially in the travel and hospitality space

India CMD Ramkumar Ramamoorthy clarified Cognizant would continue hiring, and that the earlier job-cut announcement was but a small one, considering the company had around 290,000 employees globally

Cognizant announced measures including reduction in job count in the coming quarters apart from exiting content moderation business

Narayanan, who had hired a young Ramamoorthy, says he has reinvented himself several times over the past 20 years

Experts say this is a step in the right direction for the firm to regain its competitive edge

The company has earlier denied the allegations including that of mass termination, raised by the Forum

Cognizant said its subsidiary in India repurchased shares at $2.8 bn from shareholders last year

Senior govt official says the move was independent of any government policy

Acquisition expands Cognizant's digital transformation portfolio

Post acquisition, approximately 260 specialists from Mirabeau will become a part of Cognizant's digital business practice