News

Cognizant Technology exceeds $500mn from SMAC

Aims to reach
$10-billion club

Cognizant Technology Solutions exceeded its revenue target
of $500 million from Social, Mobile, Analytics and Cloud (SMAC) for 2013. With
over 25 per cent of users’ online spending time on social networking sites,
company are interacting through these media and using it for brand building.

Moreover, Cognizant is also aiming to join the $10-billion
club this year, with a growth forecast of 16.5 per cent over 2013 that some
analysts felt was conservative.

Aims to reach
$10-billion club

Cognizant Technology Solutions exceeded its revenue target
of $500 million from Social, Mobile, Analytics and Cloud (SMAC) for 2013. With
over 25 per cent of users’ online spending time on social networking sites,
company are interacting through these media and using it for brand building.

Moreover, Cognizant is also aiming to join the $10-billion
club this year, with a growth forecast of 16.5 per cent over 2013 that some
analysts felt was conservative.

According to the Cognizant, if the company meets its
guidance, it will hit $10.3 billion in the current calendar year, which is also
its fiscal year. Revenue for the current quarter ending March 31, will be at
least $2.42 billion. “The Q4 results were in line with consensus (we expected
to be above) and 2014 guidance was lower than the Street, albeit, likely viewed
as conservative. Growth was primarily driven by financial services and
healthcare,” Baird Equity Research said in a note.

However, Rivals, including Tata Consultancy Services,
Infosys and Wipro, are also focussing a lot on SMAC and Big Data. UB Pravin
Rao, President and Member of the Board, Infosys, said the company won over 20
engagements in cloud and big data. Clients are excited about the possibilities
of ‘contestability’ and open standards, which help eliminate vendor lock-in and
maximise performance.

Jennifer S Hamel, Research Analyst with Technology Business
Research, said that for Cognizant, client demand for SMAC solutions has shifted
over the past two years from smaller pilot projects to deeper integration into
enterprises’ IT environments.

[Source: The Hindu]
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