COMPANY PROFILE -Cognizant
Business Sector :Information Technology, Business Consulting
Operating Geography :North America, United States, Global
About Cognizant :Cognizant Technology Solutions was founded in the United States in 1994 and provides IT, information security and BPO services. With its headquarters in New Jersey, it’s headed by Francisco D’Souza as its CEO. It started serving Dun and Bradstreet only when it was founded but later went on to serve external clients from 1996 onwards. It even became a Fortune 500 company in 2011.
Cognizant Revenue :
US $14.81 billion (FY ending 31st December, 2017) – year-on-year growth of 9.8%
US $13.48 billion (FY ending 31st December, 2016)
Competitive Analysis of Cognizant
|1. International exposure|
2. Less debt
3. Strong growth of services sector
|1. Limited off shore sites
2. Less presence in emerging markets
3. Small business units and brand portfolio
|1. Chasing potential markets|
3. Take government projects
|1. Increasing competition
2. Tough business environment
3. Decreasing profitability
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Detailed SWOT Analysis of Cognizant
StrengthThis section is available only in the 'Complete Report' on purchase.
This section is available only in the 'Complete Report' on purchase.
1. Expansion in Asian and Middle East markets: Asian and Middle Eastern markets have a high potential for growth. This market gives ample opportunity to Cognizant to work on these markets as a source of growth. China and India are two of the world’s fastest going economies. With the acquisition of small IT companies in these geographies, Cognizant has an opportunity to further develop its market there.
2. IT integration across Industries: The IT integration in manufacturing and Bank sector has given ample opportunity for IT sector. For example, The Internet of things (IOT) in manufacturing has given a boost to digital manufacturing. Half of all bank customers around the world now use mobile payments. All the industries though IT services are trying to cut cost to take leverage in the market.
3. Pursuing government projects: The governments of many countries, including the developed ones are pretty weak in basic IT infrastructure. As these countries, along with the developing ones move towards a digital era, the governments will demand more and more IT services. Thus, Cognizant should strategically bid to win projects from the government. Government spending on IT is expected to keep growing for at least few more years now.
1. Global and regional competitors: Cognizant faces strong competition in the industry as there are many major players operating such as IBM, Accenture, Capgemini, Wipro, Infosys, HCL, etc. which provide similar offerings and services as Cognizant. This also impacts operating margin as the businesses have resorted to cost cutting after the financial downturn and several clients offer projects to the lowest bidder.
2. Visa Fees and legislations: United States is a major market for Cognizant with close to 77.3% of its FY17 revenues, coming from North America. However, majority of Cognizant’s employees are from India and other countries. U.S has increased visa fees for H1B and L1 categories and many other restrictive legislations are being considered which will increase costs and reduce mobility of the workforce which will impact Cognizant. United Kingdom is also coming out with stringent amendments for overseas workers. Cognizant has to take strategic steps to mitigate ‘mobility risks’ in these geographies. These will create the need for hiring more local employees in the above geographies increasing the cost and impacting margins.
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References used in Cognizant Analysis Report
1. Integrated Report 2017 - https://www.cognizant.com/content/dam/cognizant.../2017/annual-report.pdf
2. Cognizant - https://www.cognizant.com/
3. Bloomberg - https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=36033530
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Cognizant SWOT & PESTLE Analysis - SWOT & PESTLE.COM
SWOT & PESTLE.com (2020). Cognizant SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/cognizant/ [Accessed 05 Apr, 2020].
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Cognizant SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.