Di­ver­sity Player

Cog­nizant was able to di­ver­sify its rev­enue base and client ros­ter, in­vested for growth, and fur­ther strength­ened its abil­ity to part­ner with clients on high value dig­i­tal ini­tia­tives

Dataquest - - CON­TENTS -

Cog­nizant Tech­nol­ogy So­lu­tions

In Jan­uary 2019, Cog­nizant cel­e­brated 25 years of in­no­va­tion, grow­ing from rev­enue of just USD 16,000 Mn and fewer than 200 em­ploy­ees in 1994 to more than $16 bil­lion in rev­enue and more than 280,000 em­ploy­ees across the globe. The com­pany also moved to rank 195 in 2018 For­tune 500 edi­tion, af­ter their first de­but in 2011 at No. 484 po­si­tion. It In­dian rev­enue for 2018 is es­ti­mated to be ap­prox USD 400 Mil­lions.

Fis­cal 2018 was ac­tion packed for Cog­nizant that has suc­cess­fully po­si­tioned it­self as a dig­i­tal era trans­for­ma­tion part­ner for or­ga­ni­za­tion’s busi­ness, op­er­at­ing and tech­nol­ogy mod­els. Re-or­gan­is­ing its hor­i­zon­tal ca­pa­bil­i­ties into Cog­nizant Dig­i­tal Busi­ness, Cog­nizant Dig­i­tal Op­er­a­tions and Cog­nizant Dig­i­tal Sys­tems & Tech­nol­ogy to make it eas­ier for clients to ap­proach for so­lu­tions they re­quire, helped them ac­quire big clients in bank­ing, fi­nan­cial ser­vices, in­surance, health­care, re­tail, life sciences, me­dia and en­ter­tain­ment, com­mu­ni­ca­tions, en­ergy, util­i­ties, man­u­fac­tur­ing, lo­gis­tics, travel and hos­pi­tal­ity.

Cog­nizant was able to di­ver­sify its rev­enue base and client ros­ter, in­vested for growth, and fur­ther strength­ened its abil­ity to part­ner with clients on high­value dig­i­tal ini­tia­tives, from strat­egy through ex­e­cu­tion. The strat­egy to keep a sharp fo­cus on their 100 largest clients, in­stilled greater op­er­at­ing dis­ci­pline across the com­pany, ex­panded their lo­cal tal­ent and in­no­va­tion hubs, and thus en­sur­ing that more than 90% of our an­nual rev­enue comes from re­turn­ing clients. And in the jour­ney they ac­quired sev­eral dig­i­tal so­lu­tions com­pa­nies in the ar­eas of mar­ket­ing, health­care, life science, me­dia, and fin­tech.

What is worth watch­ing is that all their ac­qui­si­tions in the past year had a dig­i­tal fo­cus - IoT, SaaS, dig­i­tal con­tent, dig­i­tal en­gi­neer­ing, CRM, cloud, and data an­a­lyt­ics. Zenith Tech­nolo­gies, a leader in life sciences man­u­fac­tur­ing tech­nol­ogy ser­vices with IoT ca­pa­bil­i­ties. Mer­it­soft, an award-win­ning fin­tech in­no­va­tor in post-trade pro­cess­ing, ex­pand­ing Cog­nizant’s soft­ware-as-aser­vice plat­forms; Mus­tache, a New York-based cre­ative con­tent agency, for lever­ag­ing Cog­nizant In­ter­ac­tive’s dig­i­tal con­tent ca­pa­bil­i­ties; Softvi­sion, a dig­i­tal en­gi­neer­ing and con­sult­ing com­pany fo­cused on ag­ile de­vel­op­ment of in­no­va­tive soft­ware so­lu­tions and plat­forms; Ad­vanced Tech­nol­ogy Group (ATG), a provider of cus­tomer and rev­enue man­age­ment con­sult­ing and im­ple­men­ta­tion ser­vices fo­cused on the Sales­force plat­form; SaaS­fo­cus, a con­sult­ing firm spe­cial­iz­ing in dig­i­tal trans­for­ma­tion, also lever­ag­ing the Sales­force plat­form, that will help ex­pand Cog­nizant’s end-to-end dig­i­tal trans­for­ma­tion ser­vices and Sales­force cloud ca­pa­bil­i­ties; and fi­nally Hed­era Con­sult­ing, a Bel­gian ad­vi­sory and an­a­lyt­ics com­pany spe­cial­iz­ing in busi­ness ad­vi­sory and data an­a­lyt­ics ser­vices across a num­ber of in­dus­try sec­tors.

How­ever, the com­pany has over 94% busi­ness com­ing from just US and Eu­ro­pean mar­kets where un­cer­tain­ties are grow­ing; and over 65% busi­ness from fi­nan­cial ser­vices and health­care. Clearly, it has too many eggs in too few bas­kets, which ha sit’s in­her­ent risks. On top of this the grow­ing em­ployee anx­i­eties due to on­set of dis­rup­tive tech­nolo­gies like ro­bot­ics and AI, and slow salary growth will con­tinue to keep the fu­ture very chal­leng­ing.

—RAMKU­MAR RAMAMOORTH­Y CMD

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