This year, Cognizant, a US-based Information Technology (IT) company, plans to hire roughly one lakh individuals. This is despite the fact that the industry has had substantial attrition rates. The company stated that it aims to hire an additional 30,000 freshers this year, and that by 2022, it hopes to break its own record by hiring 45,000 new graduates.
According to Cognizant's attrition metric estimates, the company had more than 3 lakh employees by the end of the June quarter, including trainees and corporates across both IT services and BPO. "In light of this, we are continuing to implement a variety of measures to reduce attrition, including salary changes, work rotations, reskilling and promotions, as well as a variety of other engagement activities. In 2021, we intend to hire around 100,000 laterals and train roughly 100,000 associates," stated Cognizant CEO Brian Humphries.
The attrition rate in India, according to the company's top executives, is primarily in the more junior and mid-level jobs. They did, however, emphasise that it was still a global phenomenon.
"Over the last decade or so, it's been one of the hottest markets we've seen or our team has seen. As a result, we're all coping with it... Annual merit-based raises were announced here a few weeks ago, and they go into effect on October 1. That's on top of a slew of ad hoc initiatives we tried out over the last year: out-of-cycle raises, promotions, and retention dollars," Humphries added in a press release.
Cognizant increased its sales by 14.6% at $4.6 billion in the most recent quarter, compared to $4 billion the year before. According to the press release, this marks a significant rise in the company's revenue growth projection for the June 2021 quarter, which was previously set at 10.5 percent to 11.5 percent. In a similar vein, the tech giant posted a 41.8 percent increase in net profits in the June quarter net income at $512 million.
"We delivered a strong second quarter," Humphries was quoted as saying. "We've been changing our portfolio to faster-growing market categories while expanding our expertise and collaborations to assist customers establish contemporary businesses through focused investments. I envision a more competitive, stronger Cognizant emerge, with increasing commercial momentum," added Humphries. The business went on to say that it expects a 10.6% to 11.6 percent increase in revenue in the third quarter, with a range of $4.69 to $4.74 billion.
Coming back to the Cognizant recruitment, Humphries stated on an investor call that the firm is committed to 'meaningful scaling' of its staff in the next quarters, citing robust industry demand and the market's bullish outlook.
Humphries went on to say that the firm had made an announcement in the recent few months signalling a transition to quarterly promotion cycles for billable resources, as well as fast-tracked job rotations and reskilling initiatives. He also mentioned that bookings increased by 12% year over year in the second quarter.