Earlier this month I blogged about what the Indian suppliers are planning I the public sector. I wrote how Cognizant is retaining its private sector focus.
I spoke to Cognizant UK head Sanjiv Gossain this morning and he told me about the companiers current approach to the UK public sector opportunity.
Cognizant is being very considered in its approach.
He said the company is definitely watching the sector but because it is in a state of flux it is not going to jump in headlong.
“It sounds like there is an opportunity but it also sounds like it is a dynamically changing landscape.
But the company, which has bits and pieces in the UK public sector, is not ruling out a push into the sector when things settle down and the actual opportunity is clear.
The company acquired London based consultancy firm PIPC in May. PIPC gave it a public sector footprint.
Gossain told me that public sector clients have similar needs to those in the private sector. “People want flexibility, predictable costs and efficiency.”
Cognizant has been outperforming the market recently. It reported 43% increase in revenues for its latest financial quarter compared with the same period a year ago. It reported $1.2bn revenue in the third quarter of 2010 compared with $853m last year and expects the full year 2010 to see total revenue of $4.55bn which will be at least 38% higher than 2009.
Gossain says UK customers are spending but remain cautious.