Chief Executive Officer at Cognizant Technology Solutions
Thank you, Tyler. Good afternoon, everybody. Against the challenging labor market backdrop and the recent humanitarian crisis in India, we executed well in the second quarter allowing us to deliver significant upside to our revenue guidance. Second quarter revenue of $4.6 billion represented growth of 15% year-over-year or 12% in constant currency. And grateful to our teams across the world for their unflagging dedication to consistently meeting our promises to clients. Thanks to the professionalism of all our associates. We had no major disruption to client service delivery from the second wave of the pandemic in India.
We continue to execute against our previously announced Operation C3 which includes our vaccination drive across the 11 cities where cognizant has operations in India. To date, we've administered or reimbursed over 160,000 vaccines to associates or their families and dependents. I'm pleased with the strength of key commercial metrics. Bookings growth accelerated to 12% year-over-year in the second quarter and our book-to-bill ratio is now 1.2 in a trailing 12 month basis. Qualified pipeline is significantly up and our win rates are also up year-to-date positioning us well for continued bookings momentum. Digital revenue growth accelerated to 20% year-over-year in the quarter.
Moving to industry segments, we posted strong double-digit year-over-year constant currency growth in communications, media and technology; products and resources; and healthcare. We've achieved a double-digit CAGR over the past four years in communications, media and technology and remain optimistic on our growth prospects. This industry is now home to some of our largest clients. within products and resources, we continue to post excellent growth in manufacturing, logistics, energy and utilities. Meanwhile, both retail and consumer goods and travel and hospitality posted their fourth successive quarter of sequential revenue increases and are now close to pre-pandemic revenue levels.
Our healthcare business had a strong quarter with double-digit year-over-year growth in both the life sciences and US payer and provider businesses. I'm delighted with our sustained momentum in life sciences which will allow us to cross the $2 billion annualized revenue threshold later this year. As we strengthen our relationship with existing biopharma and medical device companies, our strong client references and delivery excellence are positioning us well to expanded to new logos. For example, we partnered with Viatris, the newly formed company resulting from the merger of Mylan and Upjohn, a legacy division of Pfizer to support their integration readiness for day one. We are now continuing our collaboration and post merger integration services.
We will continue to invest to support our clients' digital needs in the life sciences business. Last week, we agreed to acquire TQS Integration, a privately owned Ireland-based global industrial data and intelligence company that will enhance our smart manufacturing offerings and build upon our successful acquisition of Zenith Technologies from 2019. And earlier this month, we announced the strategic alliance with global health technology leader, Philips to develop end to end health solutions that will enable healthcare organizations to improve patient care and accelerate clinical trials.
Over the past two years, we focused significant effort on reinvigorating the US payer and provider businesses. These efforts have started to bear fruits. During the second quarter, we expanded our existing partnerships with large payer clients and added new logos into provider markets. The TriZetto product business is highly strategic to our healthcare business. Following some weakness post the 2014 acquisition, we spent considerable energy soliciting client feedback and refreshing the product roadmap over to the last two years. We are now seeing growing momentum in the business. Annual growth rates in the TriZetto product business doubled in 2020 over 2019 and are on track to double again in 2021 following double-digit revenue growth in the first half of the year.
Turning now to financial services, which grew 5% year-over-year in constant currency. Both the banking and insurance businesses grew year-over-year and sequentially. In banking, which is most of the financial services business, we have sharpened our focus on the highest potential client relationships over the past 18 months. We've refreshed now about half of our client facing teams bringing in seasoned industry talent with an emphasis on executive engagement and selling and delivering business outcomes in collaboration with the financial services partner ecosystem. While we are making progress in our client engagement strategy and have seen sustained momentum in regional banks, banking results continue to be hindered by ongoing revenue erosion in large global banks.
As such, while we expect full year financial services revenues to grow modestly, the repositioning of the business continues. Before discussing the macro-demand environment, I would like to acknowledge the progress we've made in our BPO business which we call Digital Business Operations. Two years ago, we made the decision to exit certain non-strategic elements of the content moderation business that had been a meaningful contributor to growth. This decision impacted the growth trajectory of DBO and required us to reposition the business. Two years on, we've now successfully completed the exit of the content moderation business. And as of the third quarter revenue compares will be like-for-like. I'm pleased with the revised strategic direction of Digital Business Operations which focuses on automation, analytics and consulting as well as platform-based and core business process operations.
Year-to-date, we've seen double-digit revenue growth in Digital Business Operations and we expect to sustain this growth in the coming years driven by strong results in modern BPO segments like digital natives and intelligent process automation. And by our leadership position in BPaaS within the healthcare segment. A recent example of our client momentum is John Hopkins Healthcare, who turned to us to transition their Medicaid and commercial lines of business from legacy platforms and operations to our leading BPaaS solution. We'll be providing a modern scalable cloud-based platform to enable John Hopkins Healthcare to be a more robust flexible organization that can deliver better, more affordable patient outcomes.
Let's turn now to macro demand, which is particularly robust as clients modernize their legacy environments, embrace the cloud and invest in innovation. We continue to believe that the next phase of digital is about transforming processes to become agile, intelligent and automated and always with an eye on customer experience. Hyper personalization is fueling significant demand in analytics, AI and ML. Given strong demand on our bullish outlook in the industry, we are committed to meaningfully scaling our head counts over the coming quarters. However, this macro demand backdrop has also created a demand-supply imbalance in key skills and has meaningfully increased industry attrition.
As we noted in last quarter's remarks, we expected attrition to go up sequentially and it did. Second quarter voluntary attrition reached 29% on an annualized basis or 18% on a trailing 12 month basis. As a reminder, our attrition metric captures the entire Company including trainees and corporates across both IT services and BPO. Against this backdrop, we continue to take a series of actions to reduce attrition including compensation adjustments, job rotations, reskilling and promotions and a host of associated engagement activities. Fortunately, we meaningfully increased our recruiting capacity over the last six months, as we anticipated the spike in attrition following the V-shaped demand recovery in the second half of 2020.
Our human resources team has done a remarkable job helping us mitigate the impact of elevated attrition through comprehensive hiring, onboarding and skilling programs. In fact, we now expect to hire approximately 100,000 laterals in 2021 and to train close 100,000 associates. In addition, we expect to on board approximately 30,000 new graduates in 2021 and make 45,000 offers to new graduates in India for 2022 onboarding. Over recent years, we've been methodically shifting our revenue mix to digital which now accounts for more than 44% of our revenue. Since 2019, we've invested more than $2 billion in mergers and acquisitions to accelerate our digital capabilities while the impact of recent acquisitions has reduced Q2 Company margins given diligence and integration costs and acquired Company margin dilution, it has nonetheless been the right thing to do.
These investments have changed the growth profile of Cognizant by shifting our businesses to higher growth categories and reducing our exposure to non-digital categories that have declined in recent years. Today, I wanted to spend a moment addressing some of our progress against our targeted digital battlegrounds including IoT, digital engineering and cloud. Our IoT business has scaled rapidly and revenues are now expected to exceed $600 million in 2021 almost twice the size of what it was in 2019. Cognizant was recently ranked number 1 in the managed IoT services category in ISG's 2021 IoT services evaluation for both the US and Europe.
Our digital engineering business is now at a $1.2 billion annual run rate growing 30%, making it one of the largest digital engineering businesses in the world. In June, Cognizant was named a leader in Everest Group's PEAK Matrix for software product engineering services 2021 report. We've also made tremendous headway in our cloud business. Seven of our acquisitions over the past 18 months have been cloud related. As you may know, Gartner in its Magic Quadrant for public cloud infrastructure managed services providers elevated Cognizant from a niche provider player in 2018 to challenger in 2019 and to leader in 2020.
We now have three cloud focus business groups, one from Microsoft and other for AWS and the third most recently for Google. Each supported by specialized class experts and solution architects. For example, we've been recently engaged with Microsoft's industry clouds in areas like financial services, healthcare and retail. In the past two years, thanks to our ongoing market momentum, the acquisitions of New Signature, Contino and 10th Magnitude and the formation of our Microsoft business group. We've meaningfully changed our ranking to become one of Microsoft's leading global system integrator partners.
Our commitment to the partnership and focus on technical intensity, it's demonstrated by more than 100% year-over-year growth in our Microsoft cloud certifications. Our success in expanding our portfolio has not only made us more competitive, but has encouraged more clients to engage us to execute their transformation agendas. This positions us to take full advantage of our client base by enabling us to up-sell and cross-sell in our existing accounts and enables us to get new logos by leading with digital. For example, Gilead Sciences selected us to lead a body of work related to IT business transformation as well as development of an enhanced security and compliance posture. We will utilize our deep life science industry knowledge augmented by recent acquisitions like Zenith Technologies and collaborative solutions. Along with our proprietary legacy modernization framework and robust automation capabilities to support this work, our aim is to accelerate the Company's technology transformation and further enhance its digital capabilities.
In another example, given our advanced capabilities in digital automotive engineering R&D and smart connected mobility, Qualcomm Technologies, one of the world's foremost semiconductor and connectivity solutions companies turned to us to build a reliable cloud agnostic connected vehicle management solution. The aim of this integrated platform is to connect vehicular onboard applications, manage car-to-cloud [Phonetic] operations and work across nearly every OEM vehicle platform and its cloud infrastructure.
Lastly, building exceptional digital experiences is of increasing importance to clients who sometimes struggle to connect the dots between the experience itself and the underlying business functions. With our extended portfolio, we're now able to orchestrate software, data platforms and programs to transform high value interactions into personalized experiences that drive business results. A great example of this is, how we're now partnering with NBC to reimagine their customer experience. Creating direct to consumer commerce strategies, driving attendance to their theme parks and supporting their marquee event, the 2021 Summer Olympic Games.
In closing, I've been in the CEO role now for more than two years. And I see a new Cognizant taking shape. Our solution portfolio is stronger than at any time in our history. This has changed the way clients and partners perceive us and helps us deliver differentiated business outcomes. We are bullish on the industry and our prospects within it. We are well positioned to capitalize on digital transformation market trends which are accelerating and we have an enormous opportunity in our international markets. We are in one of the hottest job markets in many years and expect elevated attrition to remain a factor across the industry in the coming quarters. Our recruitment and skilling programs as well as targeted actions to offset margin headwinds stemming from the industry's talent shortage provide us confidence in our outlook for the year.
With that, I'll turn the call over to Jan, who will cover the details of the quarter and our financial outlook before we take your questions. With that, over to you, Jan.