IT services companies hit as clients delay big dealsSlower global economic growth caused by the US-China trade war and a delayed Brexit have taken a toll on IT companies, as clients have cut or delayed spending. Earlier this month, DXC Technology, with about $20.75 billion in revenue, slashed its revenue target by $275 million to $19.5-$19.8 billion, as clients postponed signing new deals.
TCS to take insurance platform placesThe Indian IT services leader’s mega insurance wins first came in the UK market, through its Diligenta unit, which initially focused on managing closed-book business — pools in which no new insurance policies are issued. Managing a closed book typically means the contract will end after all the policies run out, though that can take years.
TCS wins deal expansion with Phoenix Group, to take over employeesTata Consultancy Services has expanded its deal with European life insurance and pension consolidator Phoenix Group. Phoenix, which has been a TCS client for over 15 years, took over Standard Life Assurance in a 3 billion pound deal in August 2018. Phoenix took over about 3,500 employees as part of the deal, 2,900 of whom are in Edinburgh.
Sensing growth, Teleperformance may up headcount to 150kOverall, the company has about 300,000 employees, of whom 75,000 are in India, and is growing revenue at over 8% year-over-year. “We did not have enough scale in India before the acquisition and Intelenet also gave a boost to our digital offerings,” said CEO Daniel Julien, who founded Teleperformance over 40 years ago.
Former Cognizant President Rajeev Mehta joins board of QualitestQualitest, an independent quality assurance and engineering company said former Cognizant President Rajeev Mehta has joined the board. Mehta will spend the next three months visiting a selection of Qualitest’s global offices in London, the United States and India to get an understanding of the company practices.
NRN, Pai were marked in whistleblower mailFounder NR Narayana Murthy and former senior executive TV Mohandas Pai were also marked in the mail that was sent to the board of Infosys last month by a whistleblower who alleged financial malfeasance by top executives.
Cognizant to cut 7000 mid-senior level jobs, exit content moderationCognizant will remove a number of mid-to-senior employees, and redeploy about 5000 of those impacted. They will also exit the content moderation business for clients such as social media giant Facebook. The company has come in a significant scrutiny for the working environment of the moderators and the impact of the work on their mental health.
Cognizant to buy technology consultancy ContinoRecognized as a global premier partner with Amazon Web Services, as well as for deep expertise in Microsoft Azure and Google Cloud Platform, Contino's consulting and engineering teams have completed more than 200 enterprise engagements since 2014.
IT firms building talent to woo non-English marketsThe United States and UK markets provide a major portion of revenue for these IT and engineering R&D services companies, but growth is expected to come from non-English-speaking markets, for which language skills will be crucial.
IT stocks buck the greatest bull runBenefits of the tax cuts, stretching to 10 percentage points, would be greater for companies that largely generate their revenue at home and don't enjoy many operational exemptions.