Outsourcer Cognizant Says 4Q Revenue Rose 65%

[ChromeFoundry]

The company is hiring by the thousands in India to meet the growing demand for offshore IT services.

By Paul McDougall
InformationWeek

Feb 5, 2007 05:00 PM

Cognizant Technology Solutions, an outsourcer that operates primarily from India, said Monday that revenue for the fourth quarter increased 65% on the strength of increased demand for offshore tech services.

For the three month period ended Dec. 31, Cognizant said revenue totaled $424.4 million, a 65% increase over the same period a year ago. Earnings per share increased 18% to 46 cents on net income of $69.5 million, which rose 20% year-over-year. Looking ahead, Cognizant said it expects revenue in the current first quarter to come in at $448 million, which would represent a 57% year-over-year gain. The company said it's expecting first quarter earnings per share of 47 cents.

In a research note, Technology Business Research analyst Joseph Walent said Cognizant is doing a good job of extracting additional work from existing customers. "The company's strong emphasis on developing its existing customer relationships, primarily with those clients it sees as strategic in nature, is the responsible factor for the lion's share of this growth," Walent wrote.

Like most outsourcers -- U.S. based or Indian -- Cognizant is hiring by the thousands in India to meet the growing demand for offshore IT services. The company added 14,500 employees in 2006 and its total staff count now stands at more than 40,000.

http://www.informationweek.com/outsourcing/showArticle.jhtml?articleID=197003488

[illinoisprogressive]

1. sure, slave labor at 50 cents an hour is going to shoot up profits.

[CatholicEdHead]

2. Indian staff are well taken care of by local standards

What is cheap to us give a decent middle class life out there.

[fujiyama]

3. These are white collar jobs

and I don't care how difficult or stressful white collar jobs are. They simply don't compare to real sweathshops like those in the garment/textile, manufacturing jobs - most of which are in China.

Plus as you said, the folks getting these jobs are being paid relatively well by local standards.

[ChromeFoundry]

4. but...

What gives them a decent middle-class living is giving hundreds of thousands of American families an real understanding of what it means to be jobless, bankrupt, homeless and unemployed. Don't try and slant that as I hate the "brown people" BS. I hate corporate America and I am tired of this government offering perks to companies that would sell their children for a boost on the DOW and NASDAQ

[OhioChick]

5. Nice..

American companies should be penalized instead of being given tax incentives for this practice. Soon, the American middle class won't have a pot to piss in. :grr:

[ChromeFoundry]

6. this is already the case...

the pot is on lease, and the payment is past due.