IT major Cognizant has rejigged its top leadership team, days after lowering its sales guidance for the second time in two quarters. Cognizant has named Srinivasan V as new chief operating officer in place of Sridhar T, according to media reports.
Mr Srinivasan was executive vice president of products and resources at Cognizant before Tuesday's leadership rejig. In other changes, C Prasad was named as the head of the industry verticals in North America, while Debashis Chatterjee, executive VP and president, technology solutions, was made in charge of delivery.
Santosh Thomas will head Cognizant's market operations in Latin America along with European Union and Asia Pacific (APAC).
"Our realigned organisational structure brings together all of our talented teams to fully align with the transformative needs of our clients and helps us better support them in navigating the shift to compete in the digital economy," Cognizant was quoted as saying by Business Standard.
The changes in leadership team comes at a time when Cognizant is struggling with a weak demand environment and pricing pressure, factors that may result in the company posting its slowest revenue growth in many years.
Many other IT companies are struggling with the sudden shift in demand environment amid increased caution on account of Brexit.
Last month, Infosys scaled down its ambitious industry-leading growth forecast for 2016-17 financial year, after reporting weak numbers in the June quarter.
More than half-a-dozen high profile officials have quit Infosys, India's second largest outsourcer, since the announcement of the company's first quarter earnings in July, according to media reports.
The weak numbers and uncertainty over the impact of Brexit on IT companies have led many analysts to turn negative on the IT sector.
"Our large cap IT services universe saw a 80 basis points year-on-year margin compression as headwinds in the form of weak growth, pricing pressures and limited forex tailwinds are making margin defense difficult... With growth slowdown and margin pressure, we see risks to earnings for smaller and/or concentrated players," said Religare Securities in a note today.
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