News Link : Cognizant Plans To Hire 1 Lakh People in 2021 As The Attrition Goes High- By ND News Desk
One of the best indicators of strong demand for software services organizations is a high hiring rate.
To offset the high attrition levels, U S-based Cognizant, which employs two-thirds of its workforce in India, wants to hire one lakh people laterally in 2021.
According to Cognizant C E O Brian Humphries, in 2021, they aim to hire roughly 100,000 laterals and train approximately 100,000 associates. In addition, they anticipate on-boarding 30,000 new graduates in 2021 and making 45,000 offers to new graduates in India for on-boarding in 2022.
In the June quarter, the firm’s attrition rate reached an all-time high of 31%. And 29% of that being voluntary. Cognizant employs 301,200 people worldwide.
According to a back-of-the-envelope calculation, around 23,300 employees left the company during the quarter. And this implies that 350-380 employees resigned on an average every working day between April and June 2021. Voluntary attrition hit 11% in the previous quarter.
The majority of Cognizant’s personnel are based in India. And Humphries claimed employee turnover has been from company’s more junior levels or mid-levels. The C E O raised his concern over the last quarter, when he informed analysts that the company had to close some operations owing to a lack of personnel.
Company Focus on Improving Business Environment
Aside from attrition, increased revenue forecast has also aided employment plans. The company’s revenue increased by 14.6 percent to $4.6 billion in the June quarter. Its revenue growth forecast for 2021 has been raised to 10.2-11.2 percent. Revenue for the whole year 2021 is estimated to range between $18.4 and $18.5 billion.
While the company has planned targeted job promotions, compensation revisions and job rotations to retain talent, it anticipates continued high attrition. Though high attrition in hot talents is an industry-wide problem, Cognizant’s problems go beyond the tough job market.
Cognizant is a Nasdaq-listed company with its headquarters in the United States. And it has always been compared to its Indian counterparts. The reason being, it operates in a comparable business and has a similar customer profile, with the majority of its almost 3 lakh employees based in India.
Reports say, T C S, Infosys, Wipro, and H C L Tech’s attrition rates for the quarter ending June were 8.6 percent, 13.9 percent, 15.5 percent, and 11.8 percent, respectively.
According to a research issued a few months ago by Kotak Institutional Equities, Cognizant has also lost market share to competitors owing to insourcing, with a ransomware attack also affecting service delivery.
Cognizant Plans To Hire 1 Lakh People in 2021 As The Attrition Goes High
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