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.
That is a blow to the business models of most Indian IT companies which owe their existence largely to wage arbitrage. Thanks to cheaper local salaries, IT companies here were able to meet the technology needs of global firms at low costs. But the wage inflation in India has eroded that advantage.
Cognizant has lowered its revenue forecast for the fiscal 2016 to be in the range of USD 13.65-14 billion from its earlier estimate of USD 13.65-14.2 billion.
IT services major Cognizant Monday said its net profit has increased 9.7 percent to USD 382.9 million for the quarter ended March 31, 2015.