Cognizant

Cognizant is a leading provider of information technology, consulting, and business process outsourcing services, dedicated to helping the world’s leading companies build stronger businesses.

History

• Originally founded as an in-house technology unit of Dun & Bradstreet
• Founded in the year 1994
• Started serving external clients in 1996
• IPO launched in 1998.

Company Information

• Headquartered in Teaneck, Bergen County, New Jersey, USA
• Included in the NASDAQ-100 and the S&P 500 indices
• Over 50 delivery centers worldwide
• Over 130,000 employees as of September 30, 2011
• Member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500
• Ranked among the top performing and fastest growing companies in the world.

5 Interesting Cognizant Business Facts

1) Cognizant like many other IT services firms follows a global delivery model, based on offshore software R&D and offshore outsourcing. India is one of the key center for the company’s offshore development. The Company got immense business under the brand of D&B in its early years, but gradually succeeded in making its own brand value.

2) The company presented itself at par with the six contemporary major system integrators (Accenture, BearingPoint, Capgemini, E&Y, Deloitte and IBM), but at lower prices.

3) To deal with the Indian IT competitors, the company focused on developing deeper relationships with existing customers than on acquiring new customers.

4) The Company followed a “two-in-a-box“ engagement model:

• Its US and Europe-based leaders manages the customer relationships
• India-based managers, oversee offshore delivery services

Later in order to tackle the problem of different time zone company shifted to “three-in-a-box” model by adding business consulting layer to its “two-in-a-box” model.

5) Cognizant is organized into several verticals and horizontal units. 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, BPO and Testing.

Other Services by Cognizant

1. Financial Services

For the year ended December 31 2011, Financial Services business segment represented approximately 41.1% of the total revenues generated by the company, providing services to its customers operating in the industries, such as banking and insurance. The Company assists clients in areas such as consumer lending, cards and payments, wholesale banking, risk management, investment banking and brokerage, corporate services and retail banking. Cognizant also provides assistance to property and casualty insurers, life insurers, reinsurance firms and insurance brokers and focuses on areas, such as business acquisition, policy administration, claims processing, management reporting, regulatory compliance and reinsurance.

2. Healthcare

During 2011, the Company’s Healthcare business segment represented approximately 26.5% of its total revenues. The Company provides services to its customers operating in the healthcare and life sciences industries, where in the segment focuses on the industry solutions, such as broker compensation, sales and underwriting systems, provider management, plan sponsor administration, electronic enrollment, membership, billing, claims processing, medical management and pharmacy benefit management. It assists companies in dealing with consolidation, data integration, time to market, safety, globalization and regulations.

3. Manufacturing/Retail/Logistics

During 2011, Manufacturing, Retail and Logistics business segment represented approximately 19.6% of its total revenues. Solutions include supply chain management, warehouse and yard management, waste management, transportation management, optimization, portals and ERP solutions. The Company serves a range of retailers and distributors, including supermarkets, specialty retailers, department stores and mass-merchandise discounters, etc.

4. Communication & Network

During 2011, other business segment represented approximately 12.8% of its total revenues. Its Communications industry practice serves a range of communications service providers, equipment vendors and software vendors with the array of solutions, which includes operational support systems/business support systems (OSS/BSS), implementation, network management services, mobile applications, product life cycle management, business activity monitoring, mobile systems integration, broadband evolution services, etc. Also the company offers consulting and outsourcing services to media and entertainment companies.

Cognizant Competition Analysis

Cognizant Financials

Read more about Top Information Technology (IT),Hardware and Software Companies in India.

Acquisitions

Recently the company announced its intention to acquire 6 companies of Hamburg, Germany based C1 group. The six companies namely btconsult GmbH, C:1 Solutions GmbH, psc Management Consulting GmbH, C:1 SetCon GmbH, Enterprise Services AG and C:1 Holding GmbH, mainly serve manufacturing & logistics, energy & utilities and financial services industries. Over the years, acquisitions have been an integral part of Cognizant’s growth story. Cognizant acquired nine companies in the last three years and has spent approximately $82.8 million (fiscal 2011), $33.9 million (fiscal 2010) and $68.6 million (fiscal 2009) for them.

Cognizant Technology Solutions Corp. has taken over the #8 spot from Noble Corp. Thus in the long term, the company has bright future and its earnings is expected to grow more rapidly thus making it a sure buy recommendation.

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