The American IT multinational, Cognizant has announced salary hikes for all its employees. With the increasing IT business, the tech firm has decided to offer salary hikes and promotions to its workers.
Following the terrible Q2 performance, IT revenues are picking up. Most IT giants have announced salary hikes for employees. Cognizant is among the top IT firm that relies on Indian talent.
The American multinational has announced that it will start implementing merit-based salary hikes in the Q4 of this financial year. The company will join the league of Infosys, TCS, and Wipro with this decision.
Cognizant CEO Brian Humphries said, “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.”
The IT firm reported revenue of $4.2 billion including 250 basis points contribution in Q3. The healthcare sector of services is working best for Cognizant, with 4.2% of growth. The financial services sector is down by 2.2%.
Work from home (WFH) has become the new normal for IT companies around the world. Companies of all sizes and backgrounds are dependent on secure and synced IT services. As markets reopen and economy revives, the demand for IT business will further go up.
Cognizant has outperformed the market and analyst expectations by reporting $16.7 billion in revenue guidance. The tech firm has announced merit-based hikes and promotions in the coming quarter.
The IT firm has reported annual attrition of 18%. The rate is highest among all IT service firms. However, Cognizant has also hired 2000 employees, ending the quarter with a total workforce of 2.83 lakh employees.