Cognizant announces hikes & promotions to its employees
Cognizant, one of the world’s leading professional services companies has said that it has begun targeted merit-based salary increments and promotions from October 1, 2020.
The hikes and promotions model is based on skills, relative contribution, and qualities needed to lead transformation and future growth.
The company is joining its peers such as TCS, Infosys, and Wipro, as IT services firms see a pickup in demand with more clients adopting digital and migrating to the cloud.
Announcing the Third Quarter Results, Brian Humphries, Chief Executive Officer said, “Against a challenging demand environment, we continued to strengthen our portfolio, execute our digital strategy and increase our competitiveness”
“Clients are realizing they can distinguish themselves if they embrace disruption and transform. We are committed to making that easy for them,” he added.
We’re also implementing targeted merit-based increases and promotions in the fourth quarter,” Brian Humphries said
The Company’s revenue for the third quarter came in at $4.2 billion and includes a 250 basis point contribution from acquisitions. It 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%, while Healthcare grew 4.2%.
The Company is providing the following guidance:
- Full-year 2020 revenue expected to be approximately $16.7 billion, or a decline on a constant currency basis of 0.4%. This assumes an estimated negative 10 basis points foreign exchange impact and a negative 110 basis points impact from the exit of certain content services
- Full-year 2020 Adjusted Operating Margin4 expected to be approximately 15%
- Full-year 2020 Adjusted Diluted EPS expected to be in the range of $3.63-3.67
The Company has declared a quarterly cash dividend of $0.22 per share on Cognizant Class A common stock for shareholders of record at the close of business on November 19, 2020. This dividend will be payable on November 30, 2020.
After reducing salaries owing to the pandemic, various companies are now bringing remunerations back to normal. Over the last three weeks, several technology bellwether firms like TCS, Infosys, Wipro, HCL, Tech Mahindra and Mindtree, etc have announced plans to give out salary increments and bonuses.
