Cognizant

Cognizant Technology Solutions Corporation

File:Cognizant logo.svg Cognizant logo
Company type	Public
Industry	Information technology consulting and outsourcing
Founded	January 20, 1994 (1994-01-20) in Chennai, India
Founder	Kumar Mahadeva, Srini Raju (founding CEOs and managing directors)
Headquarters	Teaneck, New Jersey , United States
Area served	Worldwide
Key people	Ravi Kumar Singisetti (CEO), Jatin Dalal (CFO), Surya Gummadi, Rajesh Nambiar (President of Digital Business & Technology)
Products	IT services, digital transformation, business process outsourcing, consulting
Number of employees	336,800 (2024)
Website	www.cognizant.com

Cognizant Technology Solutions Corporation is a global American firm specializing in information technology consulting and outsourcing, with its origins in India. The company's headquarters are located in Teaneck, New Jersey, United States, and it is publicly traded on the NASDAQ-100 under the symbol CTSH. Established in Chennai, India, in 1994 as an internal technology division of Dun & Bradstreet, Cognizant expanded its services to external clients by 1996. After undergoing corporate restructuring, the company launched its initial public offering in 1998.

By 2024, Cognizant reported revenues of , operating profits of , and net earnings of . The organization employs around 336,800 professionals worldwide. Since January 2023, Ravi Kumar Singisetti has held the position of CEO, succeeding Brian Humphries.

History

Cognizant originated in 1994 in Chennai, India, initially named Dun & Bradstreet Satyam Software (DBSS), a joint venture split 76:24 between Dun & Bradstreet and Satyam Computers. The founding CEOs and managing directors were Kumar Mahadeva and Srini Raju. Starting with a workforce of 50 as Dun & Bradstreet’s internal technology team, the company focused on large-scale IT initiatives. By 1996, it had begun offering services to clients outside Dun & Bradstreet.

In that same year, Dun & Bradstreet separated several subsidiaries including DBSS to create Cognizant Corporation based in Chennai. Shortly thereafter, DBSS was rebranded as Cognizant Technology Solutions. In July 1997, Dun & Bradstreet purchased Satyam’s 24% stake for $3.4 million and relocated the headquarters to the United States. Kumar Mahadeva took over as CEO in 1998, steering the firm towards Y2K projects and web development.

Also in 1998, Cognizant Corporation divided into IMS Health and Nielsen Media Research. Cognizant Technology Solutions became a publicly traded subsidiary under IMS Health and completed its initial public offering in June of that year. In 2003, IMS Health divested its entire 56% ownership; Cognizant adopted a poison pill strategy to deter hostile acquisitions. That year, Kumar Mahadeva stepped down and was replaced by Lakshmi Narayanan, who led expansion into business process outsourcing (BPO) and consulting services. Francisco D'Souza assumed the CEO role in 2006.

In September 2014, Cognizant acquired TriZetto Corp, a healthcare IT company, for $2.7 billion, significantly enhancing its healthcare sector capabilities and market presence. Around mid-2015, the firm secured digital transformation contracts with India's Escorts Group and Singapore’s NTUC FairPrice, strengthening its global operational footprint.

On April 1, 2019, Brian Humphries succeeded Francisco D'Souza as CEO. In January 2022, Cognizant sold off acquisitions Oy Samlink to Kyndryl and Mustache to DJE Holdings. In 2023, Ravi Kumar S was appointed CEO with a focus on strategic leadership aimed at unlocking growth opportunities.

On April 22, 2024, Cognizant announced a collaboration with Microsoft Corporation to advance Generative AI and Copilot technologies. This partnership is designed to improve employee experience and expedite innovation across industries—bolstering Cognizant’s position in emerging technology markets.

Acquisitions

Acquired Company	Country	Acquisition Date	Sector
Belcan	United States	June 2024	Digital Engineering Services
Thirdera	United States	December 2023	Premier ServiceNow Partner
Mobica	Template:Country data UKTemplate:Namespace detect showall United Kingdom	January 2023	Automotive, Semiconductor, Internet of Things (IoT)
Utegration	United States	December 2022	SAP Expertise for Energy & Utilities Sectors
AustinCSI	United States	November 2022	Digital Transformation Solutions
Onesource Virtual	United States	November 2022	Professional Services and Workday Application Management
DevBridge	United States	December 2021	Digital Engineering Capabilities
Hunter Technical Resources	United States	August 2021	Digital Engineering Services
TQS Integration Ltd.	United States	July 2021	Data Analytics and Industry 4.0 Technologies
ESG Mobility	Germany	March 2021	Connected Vehicle Technology, IoT
Magenic Technologies	United States	January 2021	Agile Software Development, Cloud Solutions, DevOps
Linium	United States	January 2021	ServiceNow Expertise
Servian	Australia	January 2021	Data Analytics and Artificial Intelligence
Inawisdom	Template:Country data UKTemplate:Namespace detect showall United Kingdom	December 2020	Artificial Intelligence and Machine Learning
Bright Wolf	United States	"October 2020"	"Industrial Internet of Things (IoT)"

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Geographic Presence

By December 2023, the organization employed in excess of 347,700 individuals globally. Of these, roughly 254,000 are located in India across eleven cities, with Chennai serving as the primary hub. The Indian subsidiary was officially established under the name Cognizant Technology Solutions India Private Limited on 20 January 1994. Other significant Indian locations include Bangalore, Bhubaneswar, Chennai, Coimbatore, Gurgaon, Hyderabad, Kochi, Kolkata, Mangalore, Mumbai, Noida, Pune, and Indore.

Internationally, Cognizant maintains a network of local, regional, and global delivery centers in countries such as the UK, Australia, Hungary, Netherlands, Spain, China, Philippines, Canada, Brazil, Argentina, Mexico, and Costa Rica. This broad operational footprint underpins its strategy to provide IT services and digital solutions across multiple sectors, strengthening its market position and competitive edge.

Business divisions

Cognizant organizes its operations into both vertical and horizontal business divisions. The vertical segments focus on sectors such as Banking & Financial Services, Insurance, Healthcare, Manufacturing, and Retail. Meanwhile, the horizontal segments concentrate on technology-driven services and processes including Analytics, mobile computing, Business Process Outsourcing (BPO), and Testing. Business consultants are integrated within these units, collectively forming the Cognizant Consulting team. The firm actively recruits MBA graduates who play a key role in driving business development and conducting analysis for IT service engagements.

Leadership

Since January 2023, Cognizant's CEO has been Ravi Kumar S. The executive leadership team also comprises CFO Jatin Dalal, Surya Gummadi, and Rajesh Nambiar, who serves as President of Digital Business & Technology. Prior to Ravi Kumar Singisetti—formerly President of Infosys—Brian Humphries held the CEO position from April 2019, succeeding Francisco D'Souza.

Financial overview

Year	Fortune 500 Ranking
2024	213
2023	208
2022	194
2021	185
2020	194
2019	193
2018	195
2017	205
2016	230

Cognizant made its initial public offering on NASDAQ in 1998 and was included in the NASDAQ-100 Index by 2004. In November 2006, it transitioned from the S&P MidCap 400 to the S&P 500 Index. The company entered the Fortune 500 list in 2011, underscoring its robust financial growth and expanding market presence.

Corporate social responsibility

The Cognizant Foundation, established in March 2005 as a "Charitable Company" under Indian corporate law, drives the company’s philanthropic efforts and CSR programs. Its primary mission is to enhance access to quality education and healthcare by offering financial aid and technical assistance. The Foundation executes various development initiatives through collaborations with NGOs, educational bodies, healthcare organizations, governmental agencies, and corporate partners.

Additionally, Cognizant operates Outreach, a grassroots CSR initiative where employees volunteer their skills to support workforce development programs that strengthen NGO capabilities.

Sponsorships

In January 2021, Cognizant secured the title sponsorship of the Aston Martin Formula One team for the 2021 season and subsequent years, aligning its brand with an internationally recognized sport. The following month, it entered into sponsorship agreements with both the PGA TOUR and LPGA Tour, becoming a Global Partner of the Presidents Cup and the title sponsor of the LPGA Tour’s Founders Cup.

By April 2021, Cognizant was appointed digital transformation partner for SailGP, enhancing its involvement in sports technology. In June of the same year, it became the Presenting Partner for THE JOHN SHIPPEN Shoot-Out Inaugural Golf Event, highlighting its dedication to diversity and inclusion efforts.

As of 2024, Cognizant also holds the title sponsorship for Major League Cricket, further broadening its global sports marketing initiatives.

Bribery allegations

Larsen & Toubro Ltd (L&T) reportedly paid $3.64 million in bribes to Indian government officials on behalf of Cognizant Technology Solutions Corp. These payments were made to obtain necessary permits such as environmental clearances and power approvals. L&T disguised these illicit payments as compensation for cost overruns, which were subsequently reimbursed by Cognizant.

Breaches of the Companies Act

In March 2019, Cognizant came under investigation for repeatedly disregarding orders issued by India's Registrar of Companies. To avert possible criminal charges linked to alleged violations of the Companies Act of 2013 and its associated regulations, the firm sought intervention from the Madras High Court. The concerns centered on the non-reporting of stock options allocated to employees and directors by its US parent company, CTS Corporation, involving transfers amounting to several hundred crores of rupees (around US $40 million) as stock compensation recharges.

Allegations of Discrimination

A 2018 lawsuit accused Cognizant of racial discrimination, claiming that former staff members were unjustly pushed out and replaced by less qualified Indian personnel after receiving unfairly low performance ratings and being denied promotions. The company contended that the matter pertained to "national origin" rather than race. In a 2024 retrial, a US jury concluded that Cognizant had discriminated against non-Indian employees and mandated payment of damages.

Workforce Reductions

In 2018, Cognizant terminated 200 senior executives above the Director rank due to their failure to adapt to new technological advancements, raising questions about the company’s ability to keep up with industry changes. In 2017, eight employees lodged labor complaints alleging coerced resignations during performance evaluations; the labor authorities ruled in favor of these employees and advised offering them reinstatement. Simultaneously, Cognizant introduced a voluntary separation scheme for senior leaders, providing compensation equivalent to 6–9 months’ salary.

That same year, approximately 6,000 staff members located in Hyderabad, Bangalore, and Chennai were laid off as part of the annual performance review cycle, indicating a major workforce restructuring initiative.

On July 1, 2023, Cognizant broadened its healthcare portfolio by acquiring Microsoft/Nuance’s Dragon Ambient eXperience medical scribes division in the US. However, by January 2024, over 700 US-based medical scribes and managerial staff were dismissed amid a strategic decision to transfer US hospital accounts to its Indian scribes division. Around 40 US employees were terminated immediately with minimal severance pay, circumventing WARN Act obligations.

Tax Avoidance Allegations

The Income Tax department froze bank accounts belonging to Cognizant Technology Solutions Corp in Chennai and Mumbai due to accusations of evading dividend distribution tax (DDT). A spokesperson for Cognizant indicated that ongoing court proceedings have halted further enforcement actions. The company is reported to have defaulted on tax payments exceeding 25 billion rupees ($385 million) for the fiscal year 2016–17.

The court mandated that Cognizant deposit a security amount equivalent to 15% of the disputed tax liability—approximately 4.9 billion rupees ($75 million)—until the resolution of the case.

Employment Conditions

In February 2018, media outlets in the UK and Ireland highlighted concerns regarding contractors hired by Cognizant in Dublin under its outsourcing agreement with Google. Reports pointed out issues related to remuneration and essential employment benefits such as sick leave.

Corruption

In 2016, Cognizant collaborated with U.S. authorities during an inquiry into possible breaches of the Foreign Corrupt Practices Act concerning payments made in India. At the same time, President Gordon Coburn stepped down and was replaced by Rajeev Mehta.

Crawford & Company lawsuit

Cognizant was sued by Crawford & Company, a U.S.-based provider of insurance claims services, over an alleged contract violation. The agreement involved Cognizant implementing PeopleSoft Financials as a key component of Crawford’s ERP project, known as Project Atlas, which supported both internal processes and client-facing operations.

Wage theft and H-1B visa violations

As one of the leading recipients of H-1B visas in the United States, Cognizant has been growing its domestic workforce, including establishing a delivery center in Phoenix, Arizona with 1,000 employees announced in 2011.

In 2009, the U.S. Department of Labor determined that Cognizant had breached H-1B regulations by withholding wages and benefits from 67 employees, resulting in an order to repay $509,607 in back wages. The company took immediate steps to rectify these infractions.

In 2016, employees at Walt Disney World filed a lawsuit against Cognizant, accusing the company of replacing them with Indian H-1B visa holders; nevertheless, a federal judge dismissed the suit due to lack of sufficient proof.

Furthermore, Cognizant resolved a class-action lawsuit by agreeing to pay $5.7 million over allegations that it undercompensated quality assurance analysts for overtime hours.

Working conditions and mental health issues

In February 2019, The Verge published an investigative report exposing harsh working conditions at Cognizant’s Phoenix, Arizona facility. Content moderators there suffered from mental health problems such as post-traumatic stress disorder after being exposed to graphic violence, hate speech, and conspiracy theories on Facebook. The report also highlighted issues including substance abuse, sexual misconduct, and threats from former employees. Cognizant committed to examining these allegations thoroughly.

A subsequent investigation in June 2019 uncovered even more severe conditions at the company’s Tampa, Florida office. Workers described unsanitary surroundings infested with bed bugs, insufficient mental health resources, sexual harassment incidents, workplace violence, and theft. Notably, after a moderator died of a heart attack on site, essential medical equipment was reportedly absent. Despite confidentiality agreements, several moderators shared these experiences with the press. Exposure to distressing content caused significant psychological harm among staff. Prior to media visits, Cognizant cleaned the office in what was characterized as a "dog-and-pony-show" effort. In response, Facebook established a "global resiliency team" aimed at supporting contractors.

On October 30, 2019, Cognizant revealed plans to gradually discontinue certain content moderation contracts throughout 2020, a decision influenced by negative media attention affecting its business operations and client partnerships.

See also

• Disney collusion litigation
• Tech companies in the New York City metropolitan region