- India's Economic Times reports Cognizant (NASDAQ:CTSH) has "undertaken a series of steps to rein in costs and meet its operating margin target." The efforts are said to include cutting down on travel and hiring.
- The paper adds Cognizant's clocked utilization rate for employees has respectively been at 69% and 70% the last two quarters, and that the company's "comfort level" is in the mid-70s.
- The report comes 5 weeks after the IT outsourcing giant reported a 26% Y/Y increase in SG&A spend (compares with 20% revenue growth), and offered slightly below-consensus Q2 and full-year EPS guidance. Shares nonetheless rose following the numbers; the guidance was better than feared, given forex and macro pressures.