Cognizant Technology Solutions, the US-based software company with offshore development centres in India, plans to spend $175-200 million on capital expenditure this year. A majority of this expenditure will be in its construction and equipping of additional development facilities in India.
Gordon Coburn, Chief Financial and Operating Officer, Cognizant, said the company spent $23 million on capex during the quarter ended December 2008, brining its full year capex to $169 million – most of it in India.
Discussing the company’s quarterly financial results with analysts, Coburn said Cognizant recently entered into a series of foreign exchange forward contracts to hedge a portion of its 2009 India-based rupee expenses. In total for 2009, the company hedged $350 million at an average rate of $49.44, he said.
Francisco D’Souza, President and CEO, Cognizant, said the company recently acquired Active Intelligence (AI), a Canada-based system integration company specialising in Oracle’s Retail solution portfolio.
AI with around 30 employees specialises in providing consulting, implementation and support services around the Oracle Retail Merchandising, Planning and Optimisation suite and provides a growth for Cognizant’s retail practice.
“Our acquisition strategy also supports our goal of attaining market leadership in key industries. For example, our acquisition of Strategic Vision Consulting in 2008 and marketRX in May 2007 have deepened our expertise in media and entertainment and life sciences,” he said.
In this environment, D’Souza said the plan for 2009 remains unchanged from 2008. “We are determined to use this environment as an opportunity to strengthen our business. We believe there are opportunities to take market share, diversify further geographically, invest in talent acquisition, prudently take advantage of merger and acquisition opportunities and create innovation in new services.
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