Cognizant to strengthen near shore, onshore delivery centres

Bengaluru, 27 November IT services major Cognizant will strengthen its delivery capabilities by setting up near shore and onshore centres in Europe, Asia, Latin America, Canada and Mexico.

The company said apart from its core delivery centres in India, it is focusing on expanding its delivery abilities in other geographies to meet the rising demand for digital services.

"With the shift to digital and international markets, we needed to complement that (Indian delivery centres) with local and nearshore delivery. Hopefully, in the coming months, we'll have a broader announcement to make around Eastern Europe and we will complement nearshore and onshore in Europe and Asia, also with Latin America, Canada and Mexico, et cetera," said CEO Brian Humphries in an investor meet last week.

Cognizant, which has reported an attrition rate of 33 per cent in the last quarter, said that attrition levels would come down as indicated in recent months.

"While we expect industry attrition will remain elevated given the bullish macro demand that's out there, it is encouraging to see in October and where we are quarter-to-date trends. So, we've modeled elevated industry attrition and therefore, elevated Cognizant attrition, but we will obviously do everything possible to work on engagement and retention to mitigate that," said Humphries.

Meanwhile, the company expects its revenues to grow at 8-11 per cent annually in the next three years. "The 8 to 11 per cent revenue growth includes an approximate 2 percentage points of inorganic revenue growth," the company said.

By the end of 2024, the IT firm also sees the share of its digital revenue to grow to 60 per cent from present 45 per cent. "Our total revenue growth of 8 to 11 per cent will be driven by revenue growth in the digital area in the high-teens to low-20s. Non-digital revenue is expected to grow in the low midteens singles," the company said.