Vendor Analysis
published on Jul 22, 2024
Report Overview:
This NelsonHall vendor assessment analyzes Cigniti's offerings and capabilities in quality engineering services
Who is this Report for:
NelsonHall’s Quality Engineering profile on Cigniti is a comprehensive assessment of Cigniti’s offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of QE and identifying vendor suitability for quality engineering/QA/testing services
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the QE and IT services sectors.
Scope of this Report:
The report provides a comprehensive and objective analysis of Cigniti’s QE offerings, capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphasis, and new developments
- Analysis of the company’s strengths, challenges, and outlook
- Revenue estimates
- Analysis of the company’s offerings and key service components
- Analysis of the company’s delivery organization, including the location of delivery centers.
Key Findings & Highlights:
Cigniti is headquartered in Hyderabad, India, and had FY24 revenues of INR 18,150m ($223m), the year ending March 31, 2024. At the end of FY24, Cigniti had 4.2k employees.
It services ~230 active clients, including ~60 Fortune 500 companies. Cigniti’s top 20 clients accounted for ~54% of revenues (up 5 pts). In the past years, Cigniti has worked on mining its large key accounts, for which it aspires to be the sole strategic testing partner. The company has been more selective with tactical clients, for which it felt it did not have revenue growth potential.
Cigniti is no longer a testing pure-play, although it still derives 88% of its revenues from it. The company has expanded from its testing niche to offer agile consulting and development services and RPA-based business process automation in the past five years. UiPath remains its primary partner in RPA.
In May 2022, Cigniti resumed acquisitions after a ten-year pause: it took over Aparaa Digital/RoundSqr. RoundSqr was a small firm with FY22 revenues of ~$3m and almost 100 employees, yet its acquisition was strategic for Cigniti. RoundSqr brought precious data engineering, analytics, AI services, and web and mobile application development (including architecture design and API development) capabilities. It also had an IP, Zastra, a computer vision model for object detection, image classification, and semantic segmentation. Zastra accelerated Cigniti's efforts in computer vision.
Finally, Cigniti has also entered the engineering and R&D services world, initially targeting product engineering testing, with a tier-one toy manufacturer as an early client.