Cognizant to wind up Irish unit on euro's rise

By siliconindia   |   Thursday, 01 July 2004, 19:30 IST
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CHENNAI: Cognizant Technology Solutions (CTS) has announced that it plans to close its software development facility in Limerick, Ireland over the course of the next year. Acquired in ’02, the facility provides software development and maintenance services to clients in North America. The closure will affect about 50 employees and CTS will provide them severance packages and outplacement services. The 35% rise in the value of the euro against the dollar since the facility was acquired is claimed to have substantially increased the costs of the operation, forcing the company to wind up the facility. All work efforts will be transferred from the facility to Cognizant’s operations in North America and India. “We are disappointed that circumstances, in particular, euro appreciation, have forced this action. Cognizant, nonetheless, remains committed to expanding its delivery capabilities in regions of the world that offer superior and plentiful talent at a competitive cost to serve our clients throughout North America, Europe and Asia,” said D’Souza, chief operating officer of Cognizant. The company’s decision to close the facility is not expected to impact its previously offered guidance on business performance. “In fact, from January until mid-May ’04, we have added over 1,900 professionals with the majority of them in India. We are well on track to achieve or exceed our target of adding at least 4,000 professionals this calendar year,” said Chandrasekaran, managing director of Cognizant.

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