Vendor Analysis
published on Aug 04, 2023
Report Overview:
This NelsonHall key vendor assessment consists of 83 pages and provides a comprehensive and objective analysis of Cognizant's IT and business process services offerings, capabilities, and market and financial strengths
Who is this Report for:
NelsonHall’s Key Vendor Assessment on Cognizant is a comprehensive assessment of Cognizant’s offerings and capabilities, designed for:
- Marketing, sales, and business managers developing strategies to target service opportunities within the BPS/IT services markets
- Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for IT services
- Consultants advising clients on vendor selection
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the BPO/IT services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Cognizant’s offerings, capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphasis, and new developments
- Analysis of the company’s strengths, weaknesses, and outlook
- Revenue estimates
- Analysis of the profile of the company’s customer base, including the company’s targeting strategy and examples of current contracts
- · Analysis of the company’s offerings and key service components
- Analysis of the company’s delivery organization.
Key Findings & Highlights:
On January 12, 2022, Ravi Kumar Singisetti, Infosys’ President, became CEO of Cognizant. His appointment as CEO came before he even started his tenure as President of Cognizant Americas. Kumar’s accelerated appointment indicated the Bord of Directors’ growing impatience over Cognizant’s three-year transformation under Brian Humphries.
Cognizant’s financial performance has been muted in the past three years. Despite a three-year transformation, the company somewhat underperformed several peers, including TCS, Infosys, and HCLTech.
In Q1 2023, Ravi Kumar announced three priorities for the company:
- “Be an employer’ of choice” to reduce attrition
- Accelerate revenue growth, targeting large contracts (with a TCV over $50m)
- Enhance operational excellence, i.e., lower the cost base through a reduction in non-billable personnel and a real estate reduction (NextGen program)
- Other: leverage Cognizant’s vertical and technical expertise; maintain its entrepreneurial spirit based on decentralization and associate empowerment; increase client-centricity: use nearshoring presence (including 8.5k associates in Eastern Europe) for its ‘deep engineering’ needs; and continue to diversify its client base from Financial Services and Health Science to manufacturing, retail & CPG.