Cognizant’s Remarkable Headcount Growth Outpaces Capgemini 2023
The global IT services industry is constantly evolving, with companies striving to stay ahead by expanding their talent pool and enhancing their capabilities.
In the latest development, Cognizant, a leading multinational corporation providing IT services and consulting, has managed to surpass its competitor, Capgemini, in headcount growth during the September quarter.
This achievement underscores Cognizant’s commitment to strategic expansion and its ability to attract and retain top talent in the highly competitive IT services sector.
Cognizant, headquartered in Teaneck, New Jersey, has been a significant player in the IT services industry for years. The company’s consistent growth and innovative solutions have contributed to its status as a global leader.
In terms of personnel, Cognizant overtook Capgemini in the September quarter, closing a seven-quarter deficit. The same is due to the fact that Capgemini had a higher attrition rate over the time (18.6%) than did Cognizant (16.2%). Capgemini had an attrition rate of between 27–28% last year, whereas Cognizant’s was between 30 and 31%.
Prior to the March quarter of FY22, Cognizant and Capgemini had a higher headcount. Capgemini reported 340,700 workers in the March quarter of FY22, slightly more than Cognizant’s 340,400.
Over the last year, Capgemini’s offshore headcount decreased by 14,600, while its onshore headcount decreased by 1,100 during the same time frame. Conversely, Cognizant’s headcount decreased by just 2,800 over the previous year. In actuality, Cognizant hired over 1,000 new staff members in the third quarter.
In the September quarter of the fiscal year, Cognizant managed to add a substantial number of employees to its workforce, surpassing the growth achieved by its key competitor, Capgemini.
The exact figures may vary depending on the latest reports, but Cognizant’s robust headcount growth has been attributed to various factors:
- Strategic Acquisitions: Cognizant has a history of making strategic acquisitions to strengthen its portfolio and expand its global reach. These acquisitions often come with a talented workforce, contributing to Cognizant’s overall headcount growth. Key acquisitions in recent years include TMG Health, Zenith Technologies, and Code Zero, among others.
- Diverse Talent Pool: Cognizant prides itself on its diverse and inclusive work culture, which attracts professionals from various backgrounds and skill sets. The company’s emphasis on diversity and inclusion has helped it attract and retain top talent from around the world.
- Strong Demand for IT Services: The COVID-19 pandemic has accelerated digital transformation across industries, leading to increased demand for IT services. Cognizant has been at the forefront of providing solutions to meet this demand, leading to a need for a larger workforce.
- Training and Development: Cognizant invests significantly in training and upskilling its employees. This commitment to employee development not only helps in retaining talent but also ensures that the company has a highly skilled workforce capable of meeting the evolving needs of its clients.
Capgemini, a global leader in consulting, technology services, and digital transformation, has been a formidable competitor in the IT services sector. The company has also seen consistent growth over the years, but in the recent September quarter, it fell behind Cognizant in terms of headcount growth.
While Capgemini continues to expand its presence globally and enhance its capabilities, several factors may have contributed to the slower headcount growth in this particular quarter:
- Market Dynamics: The IT services industry is highly competitive, with players constantly vying for top talent. Market dynamics, including talent availability and competitive hiring, can influence a company’s ability to grow its headcount in a given period.
- Focus on Quality: Capgemini’s approach may prioritize quality over quantity when it comes to workforce expansion. The company may have chosen to be selective in its hiring process to ensure that new hires align with its culture and expertise requirements.
- Project-Based Hiring: Capgemini’s growth strategy may involve hiring on a project-by-project basis rather than a broad workforce expansion approach. This could result in fluctuations in headcount growth from quarter to quarter.
Cognizant’s achievement of surpassing Capgemini in headcount growth during the September quarter highlights its commitment to strategic expansion and its ability to attract and retain top talent in the competitive IT services industry.
While Capgemini remains a strong player in the field, this development underscores the dynamic nature of the IT services sector and the importance of adaptability and innovation in staying ahead of the competition.
Both companies continue to play significant roles in shaping the future of IT services, and their headcount growth strategies are just one aspect of their broader efforts to meet the evolving needs of their clients and the market.
