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Posts Tagged ‘Cognizant’

Cognizant Technology is just $50 million behind TCS in the US

February 10th, 2012

In the world’s biggest outsourcing market US, Cognizant Technology Solutions is now only $50 million behind Tata Consultancy Services, according to the October-December quarter revenues earned by these companies.

TCS, which counts General Electric and Citibank among its top US customers, earned $1.37 billion during the quarter ending December from the country, compared to Cognizant’s $1.32 billion.

From a gap of around $150 million in quarterly revenues from North America in March 2010, Cognizant is now looking set to become the biggest India-based outsourcing firm in the region.

On its part, TCS has a much more diversified client base when compared with Cognizant. For instance, while Cognizant gets almost 80% of its revenues from the US, TCS’s North American business contributes 53% of the total revenues. TCS has UK and Continental Europe customers contributing a quarter of its total revenues.

Cognizant, which counts JP Morgan, Merck and 3M among its top US customers, grew its revenues from the country sequentially by 6.1% and 31.2% compared to the December quarter of 2010.

TCS reported a 2.2% sequential growth in its America revenues and 20.2% compared to the same period last year.

Analysts tracking the sector said Cognizant is expected to narrow its gap with larger peers by growing its share of spend from top healthcare customers-a segment where others are not as strong.

“Its well-entrenched position in the healthcare segment (27% of revenue, which grew at 37% in FY11), where we see limited competition from tier-1 IT peers, and continued growth, motivated by regulation-driven spending, help the company,” Nomura Research analysts said in a note on Wednesday.

“Indian IT companies have grown 10-15% slower than Cognizant through good and bad times, and we do not see that changing anytime soon,” CLSA analyst Nimish Joshi said. Cognizant surpassed Infosys’ US revenue during March 2011 quarter.

Source:http://economictimes.indiatimes.com/tech/ites/cognizant-technology-is-just-50-million-behind-tcs-in-the-us/articleshow/11829314.cms

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Zacks Investment Research Analysts Reiterate a “Neutral” Rating on Cognizant (CTSH)

December 28th, 2011

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CTSH‘s stock had its “neutral” rating reaffirmed by equities research analysts at Zacks Investment Research in a research note issued to investors on Tuesday. The analysts currently have a $67.00 price target on the stock.

Zacks’ analyst wrote, “Cognizant remains well diversified among key verticals such as financial services, health care & life sciences, retail, manufacturing and logistics, which have helped the company to retain its top line. Earnings estimates for 2011 have moved up in the last sixty days driven by better-than-expected results in the third quarter. According to management, growth during the quarter was broad based across the portfolio of industries, services and geographies. Despite the uncertain macro-economic environment, clients throughout the world continue to invest thoughtfully and strategically in their businesses. In addition, the company’s deal pipeline remains robust and there is no slowdown in the decision-making cycles. Therefore, we maintain our Neutral recommendation. “

Separately, analysts at Oppenheimer (NYSE: OPY) reiterated an “outperform” rating on shares of Cognizant in a research note to investors on Monday, December 12nd. They now have a $82.00 price target on the stock. Analysts at Citigroup (NYSE: C) reiterated a “buy” rating on shares of Cognizant in a research note to investors on Tuesday, November 29th. They now have a $88.00 price target on the stock. Also, analysts at JPMorgan Chase & Co. (NYSE: JPM) reiterated an “overweight” rating on shares of Cognizant in a research note to investors on Tuesday, November 29th.

Cognizant logoCognizant Technology Solutions Corporation is a provider of custom information technology (IT) consulting and technology services, and outsourcing services. The Company’s customers are primarily Global 2000 companies located in North America, Europe and Asia. The Company’s competencies include Technology Consulting, Complex Systems Development and Integration, Enterprise Software Package Implementation and Maintenance, Data Warehousing, Business Intelligence and Analytics, Application Testing, Application Maintenance, Infrastructure Management, and Business and Knowledge Process Outsourcing (BPO and KPO). The Company operates in four segments: Financial Services, Healthcare, Manufacturing, Retail and Logistics, and Other, which includes Communications, Information, Media and Entertainment and High Technology. In May 2010, the Company acquired The PIPC Group.

Shares of Cognizant traded down 0.57% during mid-day trading on Tuesday, hitting $64.19. Cognizant has a 52 week low of $53.54 and a 52 week high of $83.48. The stock’s 50-day moving average is $66.95 and its 200-day moving average is $67.71. The company has a market cap of $19.393 billion and a price-to-earnings ratio of 23.66.

Source:http://localizedusa.com/2011/12/27/zacks-investment-research-analysts-reiterate-a-neutral-rating-on-cognizant-ctsh/

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Cognizant Q2 net up 21% at Rs9.2b

August 3rd, 2011

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NEW DELHI IT company Cognizant reported a 20.83% jump in its net profit to Rs9.21 billion ($208.04 million) on Tuesday for the second quarter ended on June 30.

The company had posted a net profit of Rs7.62 billion ($172.17 million) in the same period last year, Nasdaq-listed Cognizant Technology Solutions Corporation said in a statement.

Cognizant has overtaken Wipro’s IT Services arm for the first time in the June quarter to become the number three software exporter from India.

The US-based provider of IT consulting and business process outsourcing services that has large offshore development centres in India in the June 2011 quarter reported revenue of $1.485 billion compared with Wipro’s IT services’ arm revenue of $1.407 billion – a difference of nearly $78 million between the two players.

“We continue to see stronger than anticipated demand for our increasing range of services across the industries we serve,” Cognizant President and CEO Francisco D’Souza said.

“Over this past year, we have seen clients seeking our services not just to drive operational efficiencies, but also to transform their businesses to adapt to next generation technologies and to a new generation of ‘born digital’ workers and consumers,” he added.

In the April-June 2011 period, the company’s revenue rose to $1.48 billion from $1.10 billion in the second quarter of 2010, a growth of 34.4%.

Looking ahead, the company said it is expecting a revenue of $1.57 billion in the third quarter.

For the entire 2011 fiscal, it has projected a revenue of at least $6.06 billion, up 32% from 2010.

“Strong cash flows during the quarter allowed us to increase our cash and short-term investment balances to approximately $2.27 billion, while expanding our share repurchase program,” Cognizant Chief Financial and Operating Officer Gordon Coburn said.

Cognizant repurchased over $96 million of shares during the quarter, he added.

“As our business continues to expand to meet growing client demand, including over 7,100 net employee additions during Q2, we are successfully scaling our people, processes and infrastructure to support this growth and the increasing complexities of the business,” Coburn said.

Source:http://www.omantribune.com/index.php?page=news&id=97831&heading=Business

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Cognizant Named Oracle Fusion CRM Application Co-Development Partner

September 23rd, 2010

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Cognizantext (Nasdaq: CTSH), a leading provider of consulting, technology, and business process outsourcing services, announced today it has been selected by Oracle Applications Product Development to participate in Oracle Fusion Applications integration and migration co-development projects. The announcement was made today at Oracle Open World 2010ext, San Francisco.

Oracle selected Cognizant to co-develop customer relationship management (CRM) software tools to enable the seamless, secure and rapid integration and migration of critical customer data from Oracle’s Siebel CRM to Oracle Fusion CRM applications. Cognizant is also assisting in Oracle Fusion CRM application testing, and Cognizant teams worldwide are undergoing extensive training in Oracle Fusion applications and technology, including its architecture and data model.

“Cognizant is a next-generation solutions partner with years of industry-specific business consulting and enterprise software experience, helping large global companies improve their customer-centric processes. By tailoring Siebel CRM applications to support those processes, Cognizant will allow Oracle Fusion CRM customers to move beyond mere sales automation by improving sales effectiveness and productivity,” said Steve Miranda, Senior Vice President, Oracle Application Development. “In addition, Cognizant will help ensure cost-effective, high-quality implementations across the entire Oracle Fusion Applications suite through its proven global delivery model and methodologies.”

As a Co-Development Partner in Oracle Fusion Applications Co-Development projects, Cognizant has demonstrated the highest levels of functional application domain and technological architecture expertise. It has invested in co-development efforts that typically span nine to 24 months, working closely with Oracle Product Development to deliver next-generation functional and technical integration for Oracle Fusion Applications.

“We are committed to working with Oracle and our clients to support the open technology foundation of Oracle Fusion Applications, which helps ensure their integration, security, and extensibility. We have gained deep experience with these applications prior to their release, and we look forward to participating in early-adoption client engagements, delivering co-existing and upgradable service offerings and best practices implementations,” said Peter Grambs, Senior Vice President, Customer Solutions Practice at Cognizant.

Source:http://www.onenewspage.com/news/Technology/20100923/15313615/Cognizant-Named-Oracle-Fusion-CRM-Application-Co-Development.htm

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Cognizant reports strong Q4 and year

February 12th, 2010

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IT, consulting, and BPO services provider Cognizant Technology Solutions has reported a 28% increase in net income to $144m for the fourth quarter 2009, compared to $112.3m in the same quarter in the previous year. Revenue was up 20% at $903m.
Operating income grew 17% to $167m, while diluted EPS was $0.47, compared to $0.38 in the same quarter in the previous year. Cash and short and long-term investments increased by approximately $210m to a total of $1.55bn during the quarter.

During the quarter, the company agreed to acquire UBS Groups’ India-based captive service provider UBS India Service Centre Private Ltd, and also entered into a multi-year services agreement with UBS to provide business process outsourcing, knowledge process outsourcing, IT, and remote infrastructure management services globally. Cognizant also opened an expanded delivery center in Toronto to serve its US and Canadian clients.

For fiscal 2009, the company reported a 24% increase in net income to $535m, compared to $431m in fiscal 2008. Revenue was up 16% at $3.3bn.

Francisco D’Souza, president and chief executive at Cognizant, said: “Despite a very difficult economy, Cognizant delivered strong results with 16% annual revenue growth. The investments we made in our business leave us in an even stronger position than when we entered 2009. During the year, we grew our workforce by more than 16,700 people, improved our employee utilization, strengthened our client partnerships, and brought new services and capabilities to market. We believe Cognizant is set to deliver robust performance in 2010.”

Looking ahead to the first quarter 2010, it expects revenue of $935m and diluted EPS of $0.48. For fiscal 2010, it expects revenue of $3.94bn and diluted EPS of $2.03.

Source:http://www.istockanalyst.com/article/viewiStockNews/articleid/3856689

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UK firms praise ITO performance

December 17th, 2009

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The UK’s leading organisations report that their satisfaction with the performance of IT service providers has increased to record levels this year, as has their ability to manage their outsourcing contracts, according to Consultant News.

These findings are from this year’s ‘information technology outsourcing (ITO) service provider performance and satisfaction study’, undertaken by business advisory firm EquaTerra.

UK ITO buyer organisations ranked Capgemini (79%), Cognizant (79%) and Computacenter (78%) as the top three service providers for client satisfaction scores in this year’s study and the bottom three were HP/EDS (59%), Verizon Business (58%) and CSC (51%).

Source: http://www.itweb.co.za/index.php?option=com_content&view=article&id=28943:oz-police-it-projects-8220disastrous8221&catid=69:business&Itemid=58

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Cognizant Acquires UBS India Service Center, Enters Multi-Year Services Agreement With UBS

October 15th, 2009

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Cognizant Acquires UBS India Service Center, Enters Multi-Year Services Agreement With UBS Acquisition Enhances Cognizant’s Leadership Position in Banking and Financial Services.

Cognizant (Nasdaq: CTSH), a leading provider of consulting, technology, and business process outsourcing services, today announced a definitive agreement to acquire UBS India Service Centre Private Limited (UBS ISC), the Hyderabad, India-based captive service provider to the UBS Group.

As part of the transaction, UBS and Cognizant have entered into a multi-year services agreement under which Cognizant will provide a range of business process outsourcing (BPO), knowledge process outsourcing (KPO), IT, and remote infrastructure management services to UBS divisions around the globe to enable them to reduce time-to-market, expand service delivery, and enhance productivity, operational efficiency, and quality.

The UBS ISC currently employs approximately 2,000 associates. Their deep capabilities in wealth management, investment banking, asset management, research, and remote IT infrastructure management will help Cognizant
strengthen its business and knowledge process capabilities, deepen its financial services domain knowledge, and enhance its capabilities to provide integrated services across consulting, technology, and outsourcing.

“We welcome the highly talented and experienced professionals of UBS ISC to Cognizant. This acquisition deepens our relationship with UBS and extends our leadership position in financial services,” said Francisco D’Souza, President and CEO, Cognizant. “This acquisition builds on our long-standing strategy of delivering sharply focused business solutions and enhanced value to our clients in the financial services and capital markets industries.”

“Cognizant’s broad banking and financial services expertise and its cultural fit with UBS complement the competencies provided by the India Service Center today, while providing technology capabilities that expand the services we can buy from India and support our cost savings, efficiency and flexibility objectives,” said Ulrich Korner, Group Chief Operating Officer of UBS AG.

Subject to the satisfaction of certain closing conditions, the transaction is expected to close around the end of 2009.