Favourable economic conditions and positive outsourcing trends in America and Europe have enabled the outsourcing industry to grow with American IT service firm Cognizant Technology Solutions Corp increasing its revenue in Q3 by a more than expected 22 percent, as well as reported jumps in profit for its Indian competitors InfoSys and Tata Consulting it was reported yesterday.

North America, which accounts for three quarters of Cognizant’s revenue, offered the company lucrative contracts in addition to the work won on President Barack Obama's healthcare reforms where Cognizant supports the operators of online insurance exchanges, opened 1st October, as part of Obamacare to offer health insurance plans to millions of uninsured Americans.

"In the United States, for example, there's a lot of work for the state level and the federal level because of healthcare," Chief Financial Officer Karen McLoughlin

As financial firms and companies in Europe particularly, outsource more work and increase spending on consulting, the company’s revenue increased by 37 percent to £414.1million in the region which also saw its Indian rivals, Infosys Ltd and Tata Consultancy Services win as demand for outsourcing has grown.

"We continue to also see healthy demand in the sort of traditional outsourcing types of businesses on the continent," Chief Executive Francisco D'Souza

Cognizant’s continued surge in revenue was aided by operating on lower margins than its rivals like infoSys and Tata Consulting, helping it secure more business in the largest outsourcing geography, North America and, especially in the case of large contracts coming up for renewal, leveraging these margins effectively.

"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," Cognizant President Gordon Coburn said.