Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.

ITeS

11,588.35-73.5
Stock Analysis, IPO, Mutual Funds, Bonds & More

Cognizant's aggressive hunt for sales executives may set off a talent war

Cognizant Technology Solutions' plan to hire 500 sales executives to ramp up digital technology-based services.

Updated: Sep 03, 2019, 10.38 PM IST
0Comments
Getty Images
jobs-1
The firm has advertised over 80 open jobs in sales and marketing, seeking people to sell services from Denmark to Hong Kong.
BENGALURU: The IT services industry may see a battle for talent on Cognizant Technology Solutions' plan to hire 500 sales executives to ramp up digital technology-based services. The Teaneck, New Jersey-based tech services company could eye employees of rival software services providers such as TCS, Infosys, IBM, Wipro, Tech Mahindra and also Mindtree/Larsen & Toubro Infotech, as it aims to ramp up talent skilled in digital technologies, analysts said.

The move to hire 500 people in sales comes at a time when Cognizant is shedding its mid-to-senior level employees to cut costs.

“I would assume they (Cognizant) will go after staff from a host of competitive firms who want to take on a more digitally-focused challenge and buy into the company’s new ethos,” said Phil Fersht, chief executive officer, HfS Research.

1

“This would include sales staff at IBM disillusioned with the changes at that firm, and also from the likes of TCS, Infosys, Wipro and Tech Mahindra who want to increase earning potential and want a new challenge,” he said. The industry was going through a major transition, where consumer-facing solution leaders are imperative to help clients work through increasingly-complex solutions that encompass the move to digital, he said. Cognizant is making a bold series of changes, both in terms of technology and talent, but Fersht said, these would be costly.

Cognizant CEO Brian Humphries said recently that the company would begin to see the impact of the new hires in the next few quarters, although most are expected to come from companies with niche skills.

The company has advertised over 80 open jobs in sales and marketing on a website, seeking people to sell services from Denmark to Hong Kong.

IT services companies have always maintained a lower attrition at sales teams and typically offered incentives to retain talent. Cognizant’s Bengaluru-headquartered rival Infosys said recently it had seen the lowest attrition in its sales team.

“I think there is always a talent war... there are many good companies in the market, I’m sure many people would take this up as well,” said Salil Parekh, chief executive officer, Infosys. “We have an approach which makes sense for our clients, also for a sales team interacting with the clients. And so, we feel comfortable with that; I don't think it will harm us,” he said.

“But it’s a good thing, because they will take away from many other companies, so it will actually benefit us in some way,” Parekh added.

Also Read

Growth is Cognizant's DNA, margins are no motivation: Brian Humphries, CEO Cognizant

Cognizant to buy technology consultancy Contino

Cognizant to double investment in technical education

Cognizant's ex-CEO made $191 million in 12 years

Cognizant appoints Daniel Cohen as head of North America banking business

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service