Software outsourcing firm Cognizant Technology has beaten its own and analysts’ expectations after it reported record revenues for the third quarter.
The company said net profits for the quarter ending September 2013 hit $319.6m from $276.9m a year earlier, as sales rose 21.9% to $2.3bn.
In Europe, revenue jumped 37% to $414.7m, while revenue from North America rose 18.5% to $1.78bn.
The New Jersey-based company said much of the growth was helped by contracts from insurers setting up online exchanges as part of President Barack Obama’s healthcare reforms.
"Our performance during the quarter was stronger than anticipated due to a faster ramp up in demand for outsourcing services and strong discretionary spend on consulting and technology services," added president Gordon Coburn.
Cognizant, which recently acquired Equinox Consulting, said it expects full-year earnings to increase by 20.3% to $8.84bn, as the company continues to reinvest in its current businesses.
CEO Francisco D’Souza added: "The sheer velocity of change in the industries we serve is driving the C-suite to challenge the status quo and rethink their business models to be relevant for the future.
"Our investments across multiple horizons of growth position us well to deliver differentiated value as we partner with clients in this journey."
