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Business Today - - THE BUZZ - – Ruk­mini Rao

TECH­NOL­OGY GI­ANT Cog­nizant held its first ever in­vestor- meet in New York on Novem­ber 18. The man­age­ment out­lined a mid-term strat­egy that shifts the fo­cus back to growth from mere prof­itabil­ity as it now ex­pects mid-term growth in the range of 7-11 per cent. Cog­nizant in­tends to spend a quar­ter of its free op­er­at­ing cash flow on ac­qui­si­tions, and ex­pects dig­i­tal busi­ness to grow be­tween 20 and 25 per cent year- onyear with en­hanced fo­cus.

Cog­nizant, de­spite be­ing a Nas­daq listed stock, has been un­der­per­form­ing this past year in com­par­i­son to peers such as Ac­cen­ture, In­fosys, and TCS. An­a­lysts and in­vestors raised con­cerns over Cog­nizant’s growth even as the com­pany con­tin­ued the search for a CEO. The in­vestor meet, how­ever, seems to have helped calm nerves.

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