Information technology services provider Cognizant Technology Solutions Corp lowered its forecast for the full year on low demand, echoing the bleak outlook given by most of its rivals. The company said it now expects an adjusted earnings of $3.62 per share on revenue of at least $7.34 billion for 2012 – down from its previous forecast of $3.69 per share in adjusted earnings on revenue of $7.53 billion.
Indian rivals Wipro Ltd and Infosys Ltd forecast muted revenue growths last month, highlighting the turbulence software exporters face due to an uncertain global economy. However, India’s top software services exporter, Tata Consultancy Services Ltd, said it expects to outperform the sector outlook – an indication that it is poised to gain at the expense of rival Infosys.
In January, market research firm Gartner cut its forecast for worldwide IT spending growth this year to 3.7 percent from 4.6 percent it estimated earlier, citing a faltering global economic growth, the euro zone crisis and the impact of Thailand’s floods on hard-disk drive production.
Source: The Asia Age
