Cognizant Growth in Financial Services Slows as Company Explores Other Verticals
Software development specialist Cognizant has announced second-quarter results and updated guidance for its third quarter and full-year results. The business grew revenues 9.2% during the April-June period, falling short of analyst projections, and behind competitor Tata Technologies, which generated revenues of 10% for the same period.
The company, which is based in the US but has most of its employees in India, is currently looking to diversify away from its core revenue streams in financial services and insurance.
Growth in these verticals slowed during the quarter. Banking and financial services grew 4.5% year-over-year. While the company claims good progress with their insurance and mid-tier banking clients as they work to transform their business models, distribution strategies and customer interactions by investing in advanced technologies.
The insurance arm grew largely due to large multi-service deals, Cognizant said. The company cited the data-driven strategy project to create customised financial management products for retirees, as well as an omni-channel solution to improve the user experience, cross-sell and up-sell capabilities as examples of major successes throughout the quarter.