The agreement will enable Cognizant to further expand its presence in Europe, including France, where it has delivery and operations centres in Paris, Lyon and Grenoble.
Cognizant, which has about 75 per cent of its 2.56 lakh workforce in India, had recently said it is ramping up utilisation rates by slowing down pace of hiring and improving resource alignment.
In May, the company had initiated a voluntary separation programme, offering up to nine months of salary as part of it to some of its top-level executives in the US and India
The IT firm's revenues also grew 8.9 per cent to USD 3.67 billion in the reported period, prompting it to raise the lower-end of its growth outlook to 9-10 per cent for the ongoing fiscal.
Cognizant, which has a majority of its workforce in India, had a heacount of 2,56,800 people in the June quarter. This number stood at 2,61,200 employees at the end of March, 2017.
Old promoters of the company are at loggerheads with the management on the issue of compensation, among other things. Though the attrition in the lower and middle level software engineers has, to a large extent, been managed, senior management continues to leave the company.
There have been reports of layoffs across companies like Wipro, Infosys, Cognizant and Tech Mahindra that have initiated annual performance reviews, a process that weeds out bottom performers or non-performers.
Employees fear that release from ongoing projects to a bench awaiting deployment to a new client could mean a layoff.
The labour department also asked employees to raise concerns related to performance appraisal before appropriate forum through trade unions under Section 2(k) of the Industrial Disputes Act.
Under fire for its 'employee separation package', IT firm Cognizant has said the company has offered it in India and the US for the first time, unlike its peers who keep taking such steps regularly.
The company is proposing an offer for buyback of equity shares for cash at a price of Rs 1,000 per equity shares on a proportionate basis through tender offer process, HCL Technologies said in a regulatory filing.
The National Democratic Labour Front’s IT Employees wing is planning to approach the Madras High Court against what it calls the arbitrary downsizing of employees by Cognizant and Wipro. It says the two companies are planning to lay off as many as 30,000 employees between them.
Ramkumar Ramamoorthy, Senior Vice-President of Corporate Marketing at Cognizant, said that IT is largely a people-driven industry even as automation gains prominence.
While there is panic over job losses in the industry, the government and IT governing body Nasscom say that the current year is no different than any other.
But employees and industry watchers believe nearly 1 lakh IT jobs will vanish by the end of this year, as revenues and profit margins are under severe pressure.
Indian outsourcers have a few more years before they suffer a significant decline. They certainly won’t see the growth and billion-dollar deals that have brought them this far, feels the author.
Some are also looking at changing the industry as the call to acquire new skill sets gets louder.
Tech Mahindra will be conducting company-wide performance review and could remove large part portion of under-performing workforce.
Cognizant is set to double their headcount in the United States in CY17, reports CNBC-TV18’s Kritika Saxena quoting sources.
As the employees air their grievances against Cognizant, FITE is lending a helping hand and has urged the state government to immediately intervene in what it terms “illegal termination”.
The company has started informing management-level associates — from Director-level to Senior Vice President — about the voluntary separation package.
Dark clouds of job cuts loom over the telecom sector. The risk running with mergers is that as many as 10,000 employees may lose their jobs over the next year.
Cognizant looking at sacking more than 6,000 employees this year. Company says standard practice but is this is an impact of automation?