The US-based information technology (IT) consulting company Cognizant expects to hire about one lakh people this year amid high attrition rates. The company said it expects to welcome around 30,000 new graduates this year and is planning to make 45,000 offers to freshers in India for 2022.
Cognizant's attrition metric captures the entire company including trainees and corporates across both IT services and BPO. The company had more than 3 lakh employees at the end of the June quarter. "Against this backdrop, we continue to take a series of actions to reduce attrition, including compensation adjustments, job rotations, reskilling and promotions and a host of associated engagement activities...we now expect to hire approximately 100,000 laterals in 2021 and to train close to 100,000 associates," Cognizant CEO Brian Humphries said.
The attrition is said to be primarily in the more junior levels of the organisation or mid-levels in India, but it's also a global phenomenon. The company has about 2 lakh employees based in India.
Meanwhile, the company raised its 2021 revenue growth guidance to 9-10% in constant currency from 5.6-7.6% it had guided earlier as business is picking up especially in the digital transformation space. Cognizant, which follows the calendar year, expects revenue for the September quarter to grow 10-11% in constant currency in the range of $4.69-4.74 billion.
"We delivered a strong second quarter. Through targeted investments, we've been shifting our portfolio to faster-growing market segments while extending our capabilities and partnerships to help clients build modern businesses. I see a stronger, more competitive Cognizant emerging, with growing commercial momentum," Humphries said.
The Teaneck, New Jersey-based firm posted revenues of $4.6 billion, up 12% annually in constant currency, for the second quarter ended June driven by digital revenues that grew 20% year-on-year. Cognizant said this is its highest-ever quarterly revenue, and the largest-percentage quarterly growth since 2015 that beat its own guidance range.