One of the world’s leading professional services companies, Cognizant has announced its second quarter 2022 financial results.
Cognizant’s headcount expanded to over 341,000 employees globally in Q2 amid an intensely competitive labour market. The voluntary annualized attrition rate increased to 31% from 26% in the preceding three months indicating strong demand for tech talent across the industry.
Brian Humphries, chief executive officer, Cognizant said, “In a period of unprecedented labor market conditions characterized by elevated attrition and significant wage inflation, we focused on our client commitments and delivered balanced financial results in the second quarter.”
“This increase was slightly above the seasonal uptick we anticipated entering the quarter, impacting second-quarter revenue performance.” He added.
“As we position the company for sustained success, we will continue to invest in our talented employees, our clients, and our capabilities,” Brian Humphries added.
Jan Siegmund, Chief Financial Officer said, “During the quarter, we maintained a disciplined approach on pricing, while managing supply constraints and labor cost inflationary pressure. While quarterly bookings performance was below our expectations, our 1.2x book-to-bill supports our revenue growth outlook for 2022.”
“We now expect to return approximately $1.8 billion to shareholders through share repurchases and dividends for the full year, which reflects the strength of our balance sheet and our near-term acquisition outlook”, Jan Siegmund added.
The Financial Services revenue grew 2.7% year-over-year, or 5.1% in constant currency, driven by growth in U.S. regional banking clients, strength in the United Kingdom, and solid performance within insurance. Products and resources revenue grew 11.6% annually in constant currency driven partly by strength among automotive, logistics, retail, and consumer goods clients.
Tech Mahindra added 6,862 new employees in Q1 with a total headcount that stood at 158,035. Attrition dropped to 22% compared to 24% in the previous quarter as the company started seeing synergies from its small-town campus strategy.
Infosys has announced that it has reached a total headcount of 3,35,186 employees in Q1FY23, with the net addition of 21,171 people in the first quarter ending on June 30. The company’s attrition rate has increased to 28.4% in Q1FY23 expanding by 70 basis points from 27.7% in Q4FY22.
Wipro added 15,000 employees in the first quarter of this fiscal with a total headcount of 258,574 employees on June 30, 2022. The company has reported an attrition rate of 23.3 percent, slightly lower than the previous quarter’s 23.8 percent, but significantly higher than 15.5 percent during the corresponding quarter last year.
HCL added 2,089 employees and its attrition rate rose to 23.8 percent as compared to 21.9 percent in the previous quarter.
TCS added 14,136 employees in the April to June quarter with a total workforce of 6,06,331 employees globally and women account for 35.5 percent of the TCS workforce. Its attrition rate climbed up from 17.4 percent in the last quarter of the previous fiscal to 19.7 percent in the reporting quarter.
