We have been keeping you updated about IT companies declaring to roll-out salary hikes for all their employees, as IT businesses too have started to gain momentum, after a terrible Q2 performance due to the global pandemic.
Up until now, salary hikes for employees, starting from October 1 in most of the IT giants, were reported for all major IT giants as well as Tier-II IT companies in India, except Cognizant.
Now, the American multinational IT services provider Cognizant has announced that it will too start implementing merit-based salary hikes and promotions in the fourth quarter of this financial year, thus joining its competitors Infosys, TCS and Wipro, among others.
Cognizant’s Q3 Results Better than Expected
With ‘Work-from-Home’ becoming the new normal, companies from all sizes and backgrounds have heavily depended on secure and synced IT services.
Now, as markets reopen and the economy revives, IT businesses have started to gain momentum, thus rolling out phase-wise salary hikes for their employees.
Cognizant has announced to implement merit-based hikes and promotions in the upcoming quarter.
This is a result of the company’s excellent performance in the third quarter, outperforming analysts’ expectations. Its revenue guidance closed at $16.7 billion.
“Against a challenging demand environment, we continued to strengthen our portfolio, execute our digital strategy and increase competitiveness. We are creating 2020 bonuses at higher levels than 2019. We’re also implementing targeted merit-based increases and promotions in the fourth quarter.”, says Brian Humphries, Cognizant CEO.
Cognizant’s Q3 Performance
Let’s have a look at Cognizant’s performance in the third quarter:
- Revenue for Q3: $4.2 billion, including a 250 basis points contribution from acquisitions.
- However, due to retreat of content related services, a negative impact of 130 basis points was observed.
- While its healthcare services boomed by 4.2%, financial services fell by 2.2%.
- Thanks to higher incentive-based compensation, Cognizant’s operating margins came in at 14.2%. It is also a result of acquisitions and $43 million from its Fit For Growth restructuring plan.
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