In cognisance

Global macro uncertainties continue to weigh heavily on the Indian IT sector

Last month, when Cognizant, the world’s fastest-growing IT company, stated that it would pay its senior executives 100% of performance-linked stock units if its topline grew by 16% in 2013, IT stocks back home took a beating, with the BSE IT index shedding over 3% in the week after the announcement. Even if the market was overreacting, considering that the 16% number was the management target not revenue guidance, the nervousness is not completely unfounded. Investors’ worry seems reasonable as, historically, Indian IT companies’ growth rates have been about 10-12 percentage points lower than that of Cognizant. The fear is that if Cognizant i


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