Cognizant to ramp up global staff strength
The IT services provider will recruit approx 13,500 employees in India out of 16,000 people, Prerna K Mishra.Updated: Feb 05, 2007, 19:53 IST
Cognizant Technology Solutions Corporation (NASDAQ: CTSH) expects to ramp up its global employee strength to 56,000 in fiscal 2007 and eighty-five per cent of this global workforce will be located out of India.
The IT services provider that announced its financial results for the fourth quarter and full-year ended December 31, 2006 on Monday, will recruit approximately 13,500 employees in India out of the total of nearly 16,000 people that it expects to hire globally in 2007.
Interestingly, the company that took twelve years to reach the one billion dollar mark in revenues has forecast that it will close fiscal 2007 with at least $2.04 billion in revenues.
Based on current visibility, the revenues for first quarter 2007 are anticipated to be approximately $448 million, up 57 per cent compared to the first quarter of 2006. Fiscal 2007 revenue are anticipated to be at least $2.04 billion, according to a company statement.
The total headcount by end of 2007 is expected to reach at least 56,000. The company added a net total of almost 4,500 employees in the fourth quarter and more than 14,500 employees in 2006 overall.
"We are also making investments in our infrastructure in India and expanding into more geographies that enable us to tap new sources of talent. For example, we recently opened a development center in Kochi, our eighth city in India.
"We are also making steady, long-term investments in China, as we continue to expand our global delivery platform," said Cognizant Chief Financial and Operating Gordon Coburn.
Revenue for 2006 increased to $1.424 billion, up 61 per cent from $885.8 million in 2005. GAAP net income was $232.8 million, or $1.55 per diluted share, compared to $166.3 million, or $1.13 per diluted share in 2005.
GAAP operating margin was 18.2 per cent. Excluding stock based compensation expense of $29.9 million, non-GAAP operating margin was 20.3 per cent.
Cognizant’s quarterly revenue increased to $424.4 million, up 65 per cent from the corresponding period year-ago quarter. Revenue for the fourth quarter of 2006 increased to $424.4 million, up 12 per cent sequentially from $377.5 million in the third quarter of 2006, and up 65 per cent from $256.9 million in the fourth quarter of 2005.