Cognizant Raises Staff Pay, Wipro and Warburg Eye Harman's Indian Business Unit for $500 Million

Cognizant has announced salary hikes for 80% of its staff, with top performers in India set for "high single-digit" increases. Wipro and private equity firm Warburg Pincus are in advanced negotiations to acquire Harman's India-based digital transformation unit for approximately $500 million. The acquisition focus is Harman's Digital Transformation Solutions (DTS) arm, which employs 9,000 staff and has a robust presence in healthcare, industrial, and communications sectors.

Cognizant Technology Solutions (Cognizant) has announced a significant wage hike for 80% of its eligible employees, effective November 1. The company, which had originally planned to implement the salary revisions in August, deferred the decision due to global macroeconomic challenges [1]. The hikes, which will be merit-based, will apply to employees up to the Senior Associate level and will be determined by individual performance ratings and regional differences. Consistent top performers in India are set to receive high single-digit increases, while the highest-rated employees will earn even larger raises [1].

Meanwhile, Wipro Technologies and private equity firm Warburg Pincus are in advanced negotiations to acquire Harman's India-based digital transformation unit for approximately $500 million. The acquisition focus is Harman's Digital Transformation Solutions (DTS) arm, which employs 9,000 staff and has a robust presence in healthcare, industrial, and communications sectors [2, 3, 4]. Harman, a wholly-owned subsidiary of Samsung Electronics, designs and engineers connected products and solutions for automakers and consumers worldwide [4]. The deal is expected to value the business at about $500 million (Rs 4,375 crore) [2, 4].

These announcements come at a time of significant financial and operational changes in the IT sector. Cognizant's strong Q2 earnings, with revenue growth of 8.1% to $5.25 billion and net profit rising 14% year-over-year to $645 million, have bolstered its financial position [1]. Wipro, on the other hand, has been on an acquisition spree, expanding its presence in various sectors, including insurance, automotive software, and SAP consulting [3, 4].

References:
[1] https://www.deccanherald.com/business/companies/cognizant-to-roll-out-wage-hikes-for-80-pc-of-eligible-employees-effective-nov-1-3680306
[2] https://www.freepressjournal.in/tech/good-news-indian-it-firm-cognizant-to-roll-out-salary-hikes-for-80-of-eligible-staff-from-november-1
[3] https://www.outlookbusiness.com/corporate/wipro-looks-to-acquire-harman-indias-digital-transformation-biz-amid-expansion-spree
[4] https://economictimes.indiatimes.com/industry/cons-products/electronics/wipro-and-warburg-amplify-talks-for-harman-india-arm/articleshow/123289648.cms