cognizant technology solutions corporation is an american multinational information technology

7/30/2019 Cognizant Technology Solutions Corporation is an American Multinational Information Technology

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Cognizant Technology Solutions Corporation is an Americanmultinationalinformationtechnology, consulting andbusiness process outsourcingcompany. It is headquartered inTeaneck,New Jersey,United States,North America. Cognizant is included in theNASDAQ-100and theS&P 500indices.

Originally founded as an in-house technology unit ofDun & Bradstreetin 1994, withheadquarters inChennai,India,[2]Cognizant started serving external clients in 1996. In 1997, theheadquarters were moved fromChennaitoTeaneck, New Jersey.[2]Cognizant'sIPOwaslaunched in 1998, after a series of corporate splits and restructures of its parent companies, thefirst Indian software services firm to be listed on the Nasdaq.[2]During thedot com bust, it grewby accepting the application maintenance work that the bigger players were unwilling toperform. Gradually, it ventured into application development, complexsystems integrationandconsulting work.

Cognizant saw a period of fast growth during the 2000s, becoming aFortune 500company in2011.[3]In 2011, theFortune magazinenamed it as the world's third most admired IT services

company afterAccentureandIBM.

[4]

History[edit source|editbeta]

The company that is now called Cognizant has its roots in The Dun & Bradstreet Corporation, ajoint venture betweenDun & Bradstreet(76%) andSatyam Computers(24%).[5]Srini Rajuwasthe CEO of this company established in 1994.[6]Kumar Mahadevaplayed a major role inconvincing D&B to invest $2 million in the joint venture. He was born in Sri Lanka, where hisfather led his nation's civil service. Mahadeva traveled to England for his studies, earning a

master's degree in electrical engineering from Cambridge in1973. Originally called DBSS, theunit was established as an in-house technology unit, and focused on implementing large-scale ITprojects for D&B businesses. In 1996, the company started pursuing customers beyond the D&Bfold.[7]

In 1996, Dun & Bradstreet (D&B) spun off several of its subsidiaries including Erisco, IMSInternational,Nielsen Media Research,Pilot Software, Strategic Technologies and DBSS, toform a new company called Cognizant Corporation. Three months later, in 1997, DBSS wasrenamed as Cognizant Technology Solutions. In July 1997, D&B bought Satyam's 24% stake inDBSS for $3.4 million.[5][8]Headquarters were moved to the United States, and in March 1998,Kumar Mahadeva was named CEO.[9]Operating as a division of the Cognizant Corporation, the

company mainly focused on Y2K-related projects and web development.[10]

In 1998, the parent company Cognizant Corporation was split into two companies:IMS Healthand Nielsen Media Research.[11]After this restructuring, Cognizant Technology Solutionsbecame a public subsidiary of IMS Health. In June 1998, IMS Health partially spun off thecompany, conducting aninitial public offeringof the Cognizant stock. The company raised $34million, less than what the IMS Health underwriters had hoped for. The money was earmarkedfor debt payments and upgrading of the company's offices.[10]
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Kumar Mahadeva decided to reduce the company's dependence on Y2K projects: by Q1 1999,26% of company's revenues came from Y2K projects, compared with 49% in early 1998.Believing that the $16.6 billionERPsoftware market was saturated, Mahadeva decided to refrainfrom large-scale ERP implementation projects. Instead, he focused on applications management,which accounted for 37% of Cognizant's revenue in Q1 1999.[7]Cognizant's revenues in 2002

were $229 million, and the company had zero debt with $100 million in the bank.

[10]

During thedotcom bust, the company grew by taking on the maintenance projects that larger IT servicescompanies did not want.[12]

In 2003, IMS Health sold its entire 56% stake in Cognizant, which instituted apoison pillprovision to preventhostile takeoverattempts.[10][13]Kumar Mahadeva resigned as the CEO in2003, and was replaced byLakshmi Narayanan.[14]Gradually, the company's services portfolioexpanded across the IT services landscape and intobusiness process outsourcing(BPO) andbusiness consulting. Lakshmi Narayanan was succeeded by the Kenya-bornFrancisco D'Souzain 2006. Cognizant experienced a period of fast growth during the 2000s, as reflected by itsappearance inFortunemagazine's "100 Fastest-Growing Companies" list for ten consecutive

years from 2003 to 2012.

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Services[edit source|editbeta]

Cognizant provides information technology, consulting and BPO services. These includebusiness & technology consulting,systems integration, application development & maintenance,IT infrastructure services, analytics,business intelligence,data warehousing,CRM,supply chainmanagement, engineering & manufacturing Solutions,ERP,R&Doutsourcing, andtestingsolutions.

In 2011, the company's revenue from IT services was split roughly evenly between application

development and application maintenance. Its business process outsourcing portfolio leanstowards "higher-end" services i.e., work that involves domain knowledge and skills, such aslegal services or healthcare claims processing rather than simple voice-based support services.

In the 2012 earnings announcements, the CEO Frank D'Souza categorized the company's serviceofferings in three groups:Horizon 1 (application development and maintenance),Horizon 2(BPO, IT Infrastructure Services & business consulting) andHorizon 3 ("SMAC" - Social,Mobile, Analytics and Cloud).[33]As of September 2012, theHorizon 1 services accounted forover 75% of the company's revenues, andHorizon 2 services about 20%.

Business model[edit source|editbeta]
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Cognizant's original corporate headquarters in Chennai, now an offshore delivery center.

Like many other IT services firms, Cognizant follows aglobal delivery modelbased onoffshoresoftware R&Dandoffshore outsourcing. The company has a number ofoffshore developmentcentersoutside the United States and near-shore centers in the U.S., Europe and South America.

In its early years, Cognizant gained business from a number of American and European

companies with the help of the D&B brand. The company's senior executives envisaged the firmas a provider of high-end customer services on-par with the six contemporary majorsystemintegrators(Accenture,BearingPoint,Capgemini,E&Y,DeloitteandIBM), but at lowerprices.[34

Geographies[edit source|editbeta]

In addition to its global headquarters and delivery center inTeaneck,N.J., as well as the U.S.headquarters inCollege Station, Texas, Cognizant has nine additional U.S. delivery centers:Bentonville, Arkansas;Bridgewater, New Jersey;Chicago, Illinois;Des Moines, Iowa;Holliston, Massachusetts;Minot, North Dakota;Phoenix, Arizona;Southfield, Michigan; and

Tampa, Florida.

[39]

The company has more than 150,000 employees globally, of which over 100,000 are inIndiaacross 10 locations with a plurality inChennai. The other centers of the company are inBangalore,Coimbatore,Gurgaon,Hyderabad,Kochi,Kolkata,[40]Mangalore(CoreLogic),Mumbai, andPune. The company has local, regional, and global delivery centers in the UK,Hungary,China, The Philippines,Canada, Brazil, Argentina, and Mexico.[citation needed]

Business Units[edit source|editbeta]

Cognizant is organized into severalverticalsandhorizontalunits. The vertical units focus on

specific industries such as Banking & Financial Services, Healthcare, Manufacturing and Retail.The horizontals focus on specific technologies or process areas such as Analytics, mobilecomputing, BPO and Testing. Both horizontal and vertical units havebusiness consultants, whotogether form the organization-wide Cognizant Business Consulting (CBC) team. Cognizant isamong the largest recruiters of MBAs in the industry; they are involved inbusiness developmentandbusiness analysisfor IT services projects.
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According to the 2011 financial statements, the major portion of Cognizant's revenues is derivedfrom clients in the Financial Services (42.3%) and Healthcare (25.9%) industries. Othersubstantial revenue sources include clients from Manufacturing, Retail & Logistics (18.6%) andCommunications, Information, Media & Entertainment and Technology (13.2%) industries. Bygeography, most of the revenue is derived from North America (77.2%) and Europe (19.2%).[41]
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cognizant technology solutions corporation is an american multinational information technology

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