Cognizant Technology Solutions Corporation is an American multinational information technology consulting and outsourcing company, headquartered in Teaneck, New Jersey. It was originally founded in Chennai, India, as an in-house technology unit of Dun & Bradstreet in 1994.[5] After a series of corporate restructurings, the company went public in 1998.[6]
Cognizant is part of the NASDAQ-100 and trades under CTSH. Ravi Kumar Singisetti has been the CEO of the company since January 2023, replacing Brian Humphries.[7]
History
Cognizant was established in 1994 in Chennai, India, as Dun & Bradstreet Satyam Software (DBSS), a 76:24 joint venture between Dun & Bradstreet and Satyam Computers, with Kumar Mahadeva, and Srini Raju as the founding CEOs and MDs.[8][9] It began with 50 employees in Chennai as Dun & Bradstreet's in-house technology unit focused on implementing large-scale IT projects for Dun & Bradstreet businesses.[10] In 1996, the company started pursuing customers beyond Dun & Bradstreet.[11]
In 1996, Dun & Bradstreet spun off several of its subsidiaries, including Erisco, IMS International, Nielsen Media Research, Pilot Software, Strategic Technologies and DBSS, to form a new company called Cognizant Corporation, headquartered in Chennai, India. Three months later, in 1997, DBSS renamed itself Cognizant Technology Solutions.
In July 1997, Dun & Bradstreet bought Satyam's 24% stake in DBSS for $3.4 million.[12][13] Headquarters were moved to the United States, and in March 1998, Kumar Mahadeva was named CEO.[14] Operating as a division of the Cognizant Corporation, the company focused on Y2K-related projects and web development.[15]
In 1998, the parent company, Cognizant Corporation, split into two companies: IMS Health and Nielsen Media Research.[16] After this restructuring, Cognizant Technology Solutions became a public subsidiary of IMS Health. In June 1998, IMS Health partially spun off the company, conducting an initial public offering of the Cognizant stock. In 2003, IMS Health sold its entire 56% stake in Cognizant, which instituted a poison pill provision to prevent hostile takeover attempts.[15][17] Kumar Mahadeva resigned as the CEO in 2003, and was replaced by Lakshmi Narayanan.[18] Gradually, the company's services portfolio expanded across the IT services landscape and into business process outsourcing (BPO) and business consulting. Lakshmi Narayanan was succeeded by Francisco D'Souza in 2006.
In September 2014, Cognizant acquired healthcare IT services provider TriZetto Corp for $2.7 billion.[19] Cognizant shares rose nearly 3 percent in pre-market trading.[20]
On 24 June 2015, the company signed a multimillion-dollar agreement with Escorts Group in India to help Escorts' businesses in digital transformation and modernize its operations across all business segments.[21]
On 30 June 2015, it partnered with Singapore-based supermarket retailer NTUC FairPrice to perform digital transformation in NTUC's business to improve personalized and consistent customer service across multiple channels.[22]
On 1 April 2019, Francisco D'Souza was replaced by Brian Humphries as the CEO.[23]
In January 2022, Cognizant sold its acquisition Oy Samlink to Kyndryl and Mustache to DJE Holdings.[24]
In 2023, Ravi Kumar S was named as CEO of Cognizant.[25]
On 22 April 2024, Cognizant announced its partnership with Microsoft Corporation to extend its reach of Generative AI and Copilots, also to enhance experiences of employee and speed up their cross-industry innovation.[26]
Acquisitions
Operations
Regions
As of December 2023, the company had over 347,700 employees globally, of which about 254,000 were in India across 13 cities.[110][111] By 2024, Cognizant's largest employee bases were in Chennai and Hyderabad, each with more than 50,000 employees,[112] followed by Bengaluru with nearly 40,000.[113] The company has local, regional, and global delivery centers in other countries like the UK, Australia, Hungary, Netherlands, Spain, China, Philippines, Canada, Brazil, Argentina, Mexico, Costa Rica.[114][115]
Corporate affairs
Management
Cognizant is led by Ravi Kumar S (CEO). Jatin Dalal (CFO)[118] a, Surya Gummadi[119] and Rajesh Nambiar (President, Digital Business & Technology)[120] are some of the others in the leadership team.
On 1 April 2019, Francisco D'Souza was replaced by Brian Humphries as the CEO.[121]
On 12 January 2023, Brian Humphries was replaced by former Infosys President, Ravi Kumar Singisetti as the CEO.[122]
Sponsorships
In January 2021, the newly rebranded Aston Martin Formula One team announced Cognizant as their title sponsor for the 2021 Formula One World Championship and beyond.[141][142] In February 2021, Cognizant signed a sponsorship deal with the PGA TOUR and LPGA Tour to become a Global Partner of the Presidents Cup and a title partner of the LPGA Tour’s Founders Cup.[143]
Later in the same year, in April, Cognizant signed an agreement to be SailGP's digital transformation partner.[144] In June, Cognizant also became the Presenting Partner of THE JOHN SHIPPEN Shoot-Out Inaugural Golf Event.[145][146]
Criticism and controversies
India
Bribery
Larsen & Toubro Ltd (L&T) paid $3.64 million in bribes to Indian government officials on behalf of Cognizant Technology Solutions Corp. to secure permits, ranging from environmental clearance to power. L&T has made illicit payments and Cognizant reimbursed the money by disguising it as compensation for cost overruns.[149]
Companies Act violations
In March 2019, significant publicity was raised because Cognizant repetitively violated the directives of the Registrar of Companies. The Company "has moved [sic] the Madras High Court fearing possibility of criminal prosecution being launched against it by [the] Registrar of Companies for alleged violation of the provisions of the Companies Act of 2013 and the Companies (Appointment and Disqualification of Directors) Rules of 2014."
See also
- Disney collusion litigation
- Tech companies in the New York City metropolitan region
External links
References
- Cognizant opens new facility in Chennai for hybrid work The Economic Times, retrieved 28 August 2022^
- Cognizant founder Mahadeva to retire Economic Times, 22 December 2003, retrieved 4 June 2018^
- Cognizant's co-founder to step down from board