Outsourcer Cognizant posts strong sales

Outsourcing firm records a 42 per cent increase over last year's second quarter

Cognizant has seen revenues in Europe rise by 15 per cent quarter on quarter

Outsourcer Cognizant Technology Solutions has posted strong results for the second quarter of 2010, recording revenue of £694m, a 15 per cent increase on the previous quarter, and a 42 per cent rise compared with second quarter 2009.

The firm attributed the growth to projects that were put on hold last year, restarting this year.

Cognizant said its UK operations also had a good quarter, and revenues in Europe rose by 15.3 per cent quarter on quarter.

“I think we’re seeing some pent-up demand, some of which was released over the first quarter as well. People were curbing their spending last year and there had been projects on hold,” explained Sanjiv Gossain, UK managing director at Cognizant.

“We’ve also seen several mergers and acquisitions come to fruition and that drove demand in the second quarter as well.”

The firm’s revenue in the financial services sector rose by 18 per cent, healthcare revenue increased by nearly 12 per cent and retail and manufacturing was up by 17 per cent, compared with first quarter 2010 respectively.

“In terms of retail, the outsourcing accounts that we won last year are now really ramping up their operations,” added Gossain.

The firm expects to increase its revenue by a further six per cent in the third quarter 2010, and has adjusted its expected annual revenue growth for 2010 from 25 per cent to 36 per cent.