Cognizant, a Nasdaq-listed IT services provider, is likely to begin paying raises to eligible employees from August 1, marking a four-month delay from the previous year. As indicated in its 2023 annual report, the company is currently experiencing a weak demand environment and guided for margin concerns in 2024 .
With the possible August hike, the bulk of Cognizant employees would have received four raises in three years, with the cycles being: October 2021, October 2022, April 2023, and August 2024. The Teaneck-based firm employs over 347,000 people worldwide, of which about 254,000 are based in India.
As per the media reports, Cognizant stated that the company is committed to recognising hard work and dedication of its associates through its annual merit increases and bonuses. “As part of this commitment, the merit increases for eligible associates will be awarded this year on August 1. Importantly, the majority of our associates have seen four merit increases within three years, with the last cycle being April 1, 2023,” the company said in a statement.
Cognizant posted a decline in revenue for the October–December quarter of 1.7% to $4.76 billion year-on-year (YoY). Further, Revenue declined sequentially by 2.9%. In the fourth quarter, the company’s net profit rose by more than 7% to $558 million YoY. Despite being a US-based business, Cognizant’s success is indicative of the general mood in the market for Indian IT service providers such as Tata Consultancy Services, Infosys and Wipro.
The second-biggest IT services provider in India, Infosys, stated in January that it does not foresee a need for campuses right now. Rival Tata Consultancy Services, on the other hand, has started hiring on campus for FY25.
Cognizant has given a guidance of $4.68-$4.76 billion for Q1FY24, which translates to a decline of 2.7% to 1.2%.
(Inputs from FE Bureau)