Cognizant Overview

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Cognizant Overview

Cognizant Technology Solutions Corp. is a professional services company which earned the largest share of its revenue from Financial Services in 2018.

COMPANY PROFILE

Operations:

  • According Reuters' company profile of Cognizant Technology Solutions Corp. (CTSH.O,) Cognizant is a professional services company which is headquartered in Teaneck, NJ and was incorporated on April 6, 1988.
  • The company conducts its operations through four segments: Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other.

A brief description of Cognizant's operational capabilities in each of these segments

  • Financial Services: In this segment, the company serves customers equipping them with banking/transaction processing, capital markets and insurance services.
  • Healthcare: In this segment the company serves customers who are healthcare providers and payers, as well as life sciences customers, including pharmaceutical, biotech and medical device companies. The company provides a range of services and solutions addressing regulatory compliance, integrated health management, enterprise information management, claims investigative services and operational improvement.
  • Manufacturing/Retail/Logistics: In this segment the company serves manufacturers, retailers, travel and other hospitality customers, as well as customers providing logistics services.
  • Other: This segment consists of information, media and entertainment services, communications and high technology operating segments.

The company's service avenues can be classified into four sub-sections

  • Digital Business: Through this avenue the company reshapes business models, modernize products and enhance the experience of a customer to drive growth.
  • Digital Operations: Here the company helps its customers to reinvent and manage its most crucial business processes through new ways of working.
  • Digital Systems & Technology: Here the company's job is to modernize and secure the IT infrastructure and applications for its clients.
  • Cognizant Consulting: Through this service cognizant helps to engage people and uncover insight from data to shape the products, services and experiences they offer.

Following are the five latest news-items published on Cognizant

  • On June 18th 2019, Cognizant agreed to acquire Zenith Technologies, a privately-held life sciences manufacturing technology services company.
  • On May 30, 2019, Cognizant was recognized as a market leader in the Salesforce Ecosystem Quadrant Report for 2019 by Information Services Group (ISG.)
  • On May 21st, 2019, Cognizant was named a leader in the new Everest Group 2019 PEAK Matrix report for Application Automation Services.
  • On May 7th 2019, Cognizant announced the expansion of its research and development (R&D) partnership with AVEVA, a global leader in engineering and industrial software.

COMPANY STRUCTURE

Organization Structure

  • Cognizant is led by a 10-member board.
  • In the C-level set-up Brian Humphries serves as the CEO & Director, Karen A. McLoughlin as the Chief Financial Officer, Srinivasan Veeraraghavachary as the Executive VP & Chief Operating Officer and Carol Mimon Cohen as the Global Head of Executive Talent & Leadership Development.

Ownership Structure

  • In terms of ownership structure, 90.36 percent of shares of Cognizant are held by Institutional holders.
  • 9.64 percent of shares of Cognizant are held by non-institutional holders.
  • The top 5 institutional holders of cognizant are: Blackrock, Inc., Vanguard Group, Inc. Massachusetts Financial Services Corporation; State Street Corp., and Bank of New York Mellon Corp.

Which products/services drive the most revenue

Most profitable products or services for the company

  • In 2018 the most profitable services was Communications, Media and Technology with an operating margin of 31.9 percent followed by Healthcare (30.7 percent,) Products and Resources (30.5 percent,) and Financial Services (30.1 percent.)

Where the company loses revenue

  • In 2018, company's expenditure or overall cost of revenue decreased driven by a decrease in compensation and benefits costs due to the optimization of our resource pyramid, improved utilization and the depreciation of the Indian rupee against the U.S. dollar.
  • However, this decrease in cost of revenue was partially offset by an increase in fees paid to strategic partners and other vendors in company's digital operations, platform and infrastructure services and increases in certain professional service costs.

Where the profit/growth comes from

  • In 2018 the maximum growth in revenue compared to 2017, came from Communications, Media and Technology which increased by 17.4 percent, YoY, followed by Products and Resources (Growth: 12.3 percent YoY); Healthcare (9.5 percent YoY) and Financial Services (3.7 percent YoY.)
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