Cognizant Technology Solutions, provider of information technology, consulting, and business process outsourcing services with major offshore delivery centre in Chennai, said its board of directors has authorised the expansion of its existing share repurchase programme by $150 million, bringing the total authorisation under the current repurchase programme to $300 million.

Also, Cognizant?s board has extended the expiration date for the repurchase programme to June 30, 2012, said the company in a filing to US stock exchange Nasdaq. ?The board?s decision to expand our share repurchase program reflects confidence in our growth strategy and in our ability to generate strong cash flows,? said Gordon Coburn, chief financial and operating officer of Cognizant in the release.

Repurchases under the programme may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws, including Rule 10b-18.

The timing of repurchases and the exact number of shares of common stock to be purchased will be determined by the company?s management in its discretion and will depend upon market conditions and other factors. The programme will be funded using the company?s cash on hand and cash generated from operations. ?While the size of buyback programme is somewhat small relative to the number of outstanding shares, we think it should improve investor sentiment,? said Sachin Jain, senior equity analyst and vice-president, IT services and enterprise software, Kauffman Bros L.P.

?Cognizant?s announcement of $500 million of investments over the next four years for expanding its facilities points to the company’s solid long-term visibility,? he added. According to information available with FE, Cognizant has given a guidance of 6% growth in June quarter to $1.45 billion. The company is further projecting to grow 29% in 2011 fiscal to close to $5.925 billion revenues.

The company’s recent $500 million investment plan is aimed at creating 8 million square feet delivery centre space in India and to add 55,000 associates to its existing approximate 1 lakh associates in the Indian offshore region.