6 April 2024 – Cognizant, a prominent IT services provider listed on Nasdaq, is expected to implement pay raises for eligible employees starting from August 1, marking a four-month delay from the previous year. This delay comes amidst a challenging demand environment and margin concerns projected for 2024, as indicated in the company’s 2023 annual report.
With the potential pay hike in August, Cognizant employees would have experienced four raises within three years, with the previous cycles occurring in October 2021, October 2022, and April 2023. The company, headquartered in Teaneck, employs over 347,000 individuals globally, with approximately 254,000 based in India.
According to media reports, Cognizant emphasized its commitment to recognizing the hard work and dedication of its associates through annual merit increases and bonuses. The company’s statement highlighted that the majority of associates would have received four merit increases within three years, with the last cycle occurring on April 1, 2023.
Cognizant reported a 1.7% decline in revenue for the October–December quarter, amounting to $4.76 billion year-on-year. Additionally, revenue decreased by 2.9% sequentially during this period. Despite being a US-based entity, Cognizant’s performance reflects the prevailing market sentiment for Indian IT service providers, including Tata Consultancy Services, Infosys, and Wipro.
Infosys, the second-largest IT services provider in India, announced in January that it does not anticipate a need for campuses at present. Conversely, Tata Consultancy Services has commenced campus hiring for FY25.
