Cognizant cuts sales outlook for 2016

US-headquartered global business process outsourcing (BPO) firm Cognizant has trimmed its sales outlook for this year due to an expected softer IT spending by enterprises. Cognizant, which operates delivery centers in Manila and Cebu, cited macroeconomic headwinds in cutting the outlook. Cognizant president Gordon Coburn also said Brexit, banking and the US healthcare market also contributed to the outlook being cut. However, CEO Francisco D’Souza said the long-term prospects were still strong. The lowered outlook came as Cognizant, which is a closely watched offshore outsourcing company, reported a solid Q2. For Q3, Cognizant expects revenue to be between USD3.43bn and USD3.47bn.

Shares