Cognizant exceeds $2bn with non-linear growth


Cognizant exceeds $2bn with non-linear growth

Karl Flinders

IT services supplier Cognizant has exceeded $2bn revenues in a single quarter for the first time with growth in social, mobile, analytics and cloud (Smac) and non-linear growth products and services.

Cognizant – which has most of its delivery staff in India – increased sales in the first three months of its fiscal year by 18.1% to $2.02bn compared to the same period the year before. 

Cognizant finished the quarter with 6,000 more staff than when it began.

Cognizant saw demand across a broad range of services, according to CEO Francisco D'Souza: "We continue to make solid progress developing emerging offerings in new markets, new Smac technologies and new non-linear solutions and services.” 

D'Souza highlighted Cognizant's Business Cloud portfolio as an example.

Suppliers based in India have seen massive linear growth over the past decade, as lower labour rates have been exploited by Western corporations.

Mark Lewis, outsourcing lawyer at Berwin Leighton Paisner, said that big India-based service providers are attempting to move towards non-linear growth models. 

“They will all have to do this because they cannot continue with linear models because it’s a fight to the bottom in IT outsourcing and BPO,” said Lewis.

He said falling prices, automation and cloud computing are examples of the pressure on traditional linear models such as time and materials.

Infosys, for example, is partnering IT automation platform supplier IPSoft in a bid to add value to IT outsourcing and BPO deals. 

For the same reason, Wipro has taken a stakeholding in big data science company Opera Solutions.






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