IT Companies redraw strategy -

Cognizant –

The U.S. environment post-resolution of debt crisis may push the IT (information technology) companies to look at productivity and investment with a sense of purpose, seriousness and long-term outlook.

The situation as it was evolving would force clients to look for options that give them more for less. Clients invariably worked hard to drive efficiency when chips were down. Still, they needed to support their businesses. Consequently, he felt, clients had to necessarily invest in IT. The challenge lay in discovering - what else can be offered to them. Cognizant had to stay invested in creating newer capacities and offer innovative solutions if it were to increase its business prospects. In this context, it is justified the position taken by Cognizant to keep the operating margin within a 19-20 per cent band and reinvest the balance money.

The emerging environment in the wake of developments especially in the U.S. would force IT companies to work relentlessly on ways to become nimbler, flexible and adaptable. Cognizant would have to expend its energies on re-working utilization levels with newly-defined bench strength, fine-tuning the hiring process and driving resource efficiency in delivery models.

On the rising concerns across the globe over protecting local jobs - IT companies had to make adjustments on this score. Cognizant had gone in for campus recruitments in the U.S. and Europe. We are hiring in every geographical location. We want to be a local service provider to local clients.

Infosys Senior executives –

Maintained their revenue outlook, saying full-year fiscal revenues could grow 18-20 percent to between $7.13 billion and $7.25 billion, which analysts and investors had expected to be higher.

The economic environment is still volatile. All the large markets are seeing problems like high unemployment and inflation, low growth and huge fiscal deficits.
Clients have become cautious, as the sovereign (debt) crisis in Europe has become bigger.

-Cheers

PS: Cheper, Better, Faster...!