Cognizant is an American multinational provider of custom information technology, consulting and business process outsourcing services head-quartered in New Jersey, USA. The Cognizant CEO and President Francisco D’Souza said in his interview with the Financial Times that “We made a decision to set operating margins at a target level of 19 to 20 per cent, lower than our key offshore competitors, to give us the room to reinvest everything above that into the business.” Sudin Apte, principal of the Information Technology analyst at Offshore Insights stated that
“The company also took a bold step and increased its spend in a touch economy on activities such as R&D and innovation, account management, building new offerings and solutions, and continued recruiting at senior and middle management level when arguably many others cut their budgets.”
According to the reports, the journalism sector requires investment in that area that is the reason why Cognizant began offering simple back-office services. Nowadays, Cognizant is paying attention in improving its services to satisfy its clents and customers. Most of their income spends on the development of the high-end IT services. They are also giving more attention with its clients in order to build a presence on social networks.
Cognizant is always planning to make a shocking step in order to surprise their clients with their quality services. They are focusing on the activities such as innovation, account management, building new offerings and solutions, and continued recruiting at senior and middle management level when other companies cut their budget. High quality global journalism requires investment.
In order to stay on the competitive status, Cognizant went up with its own “secret sauce”, that is according to Cognizant CEO and President Francisco D’Souza. The company is paying more attention oon investing more than its peers on innovation which is resulting in generating lower margins. Because of that characteristics, the Cognizant has deepened its relationships with their existing clients. Outsourcing industries have gone too far. It provides a better strategy for the company’s operations.
Reference:
http://www.ft.com/intl/cms/s/2/b416c49c-c275-11e0-9ede-00144feabdc0.html#axzz1V1XbdLNH
http://valueofinnovation.com/2011/08/financial-times-cognizant-shines-in-it-sector/.
http://www.twylah.com/fttechnews/tweets/102781093563990016
http://www.data-visualization-tools.com/articles/6689/cognizant-shines-in-indian-it-sector/
http://www.devblogging.com/2011/08/28/cognizant-shines-in-indian-it-sector-financial-times/
