Cognizant to hire more in the US; no more voluntary separation package
This recruitment drive is necessitated by the increase in regional bases run by Cognizant in the US.
Cognizant is planning to expand its workforce in the United States, along with the rising number of its delivery locations in the country, said Francisco D'Souza, CEO of the New-Jersey-based IT services company during an interview with The Hindu.
"We have always been big hirers in the US. Last year, we hired 4,000 people in the US. We continue to be active in ramping up and hiring in the US because the skills and talents we need in the new digital world, like design talent, latest science, is available there," D'Souza said.
This recruitment drive is necessitated by the increase in regional bases run by Cognizant in the US. "We are also bringing in more regional delivery locations in the US. We are hiring more people in the US as we need to set up regional centres which are close to our clients. ... We are ramping up in the US. We had 47,500 people in the US at the end of June," he said during the interview.
Cognizant has expanded its presence in Europe and the United States lately. While the IT services firm has hired mostly local employees in Europe due to language barriers, it is planning to take the same route in the United States. The reason could be anything from finding people who understand the local clients better or protectionist policies enacted by the Trump government.
However, around 400 employees opted for voluntary separation package (VSP) offered by Cognizant. The company began financial year 2017-18 with an employee base of 2,61,200 at the end of March this year, which fell by 4,400 in June. It resulted in annualised savings of $60 million for the firm. Severance packages offered to the outgoing employees set the compnay back by $35 million. Following this, Cognizant is not planning to offer any more VSPs, D'Souza said.
"We have no plans for another one (VSP). We hired 10,800 employees in the second quarter (ended June) across the board in India and abroad," Mr. D'Souza was quoted in the interview.
Cognizant on Monday said it had completed its acquisition of TMG Health, a U.S. provider of business process services, supporting more than 4.4 million members in all 50 states. "We will be more aggressive in our acquisition strategy. We have done a number of digital acquisitions. We will continue to do that."