Cognizant Company Analysis

conscious(predicate) Company psychoanalysisIntroduction assured is leading With 50 global delivery centers and approximately over 64,000 associates, sensible combine a unique onsite/offshore delivery model inf holdd by a distinct purification of utilizationer satisfaction. A member of the NASDAQ-100 Index and SP 500 Index, Cognizant is a Forbes Global 2000 play along and a member of the Fortune 1000 and is ranked among the hap breeding technology companies in Business Weeks, Hot Growth and Top 50 Performers listings. Cognizant is the pioneer in offshore Outsourcing. They bring their clients the economic advantages, with the activity experience and the local expertise. Today, Cognizants clients argon benefiting from 4th Generation function. Operating as their technology partner, Cognizant provides the expertise to help Cognizants clients realize their objectives. 4th Generation Offshore Outsourcing provides seamless integration between the customer and Cognizant. Cogniza nt go far beyond the established onsite/offshore model by offering in-depth local consulting presence, onsite teams focused on the customers personal credit line applications, and the guidance depth that partners pissedly with awake clients. The line of business culture is either India-centric or exclusively Cognizant in style, striking the exceed balance of all the offshore firms. Most of awake management team has extensive US or European experience, and under(a)stands aware(predicate) clients culture. In India, Cognizant is considered a local player with a very strong reputation for excellence. Clients benefit from cognizant non-hierarchical, responsive shadower-do approach to business. Cognizant has deep technology expertise across a wide range of competencies. Technology competency and the quality of cognizant people be the highest-rated attributes in cognizant Customer Satisfaction Survey. Cognizant brings a strong project culture to every engagement. They did not s tart as a staffing beau monde, but instead as the development arm of crucify Bradstreet. Their development heritage has given us an edge on delivering larger, complex, end-to-end projects. Their project expertise is reflected in a strong methodology and the development and use of cognizant proprietary tools. They track the progress of projects and programs with eCockpit, the proprietary engagement management tool that is available to all of cognizant clients. ECockpit provides a graphic representation of project-related status, such(prenominal) as productivity, effort, cash flow, and defects density. It also looks at personal metrics such as targets and individual progress.Key PointsCognizants single-minded modificationionDedicating cognizant global reorganization, sedulousness intelligence and systems expertise to working with cognizant clients to make their businesses stronger. Cognizant is leading the market from the last few years.89% of clients rate overall cognizant Cust omer generate as Much Better, Better or About the Same as Competition. Cognizants increment record in 07 to 08 was amazing. That was Employee growth was +11.4%, Revenues with +32% and the net income +23% (GAAP) systematically nurtured Growth. Cognizant is the only major offshore company organized around verticals and horizontals rather than just regions and development centers. With the deep domain expertise in key verticals and large-scale horizontal solution, the highly project-oriented firm that can take complete responsibility for large development and integration projects, and for delivering bottom line results from application management. Cognizant having a strong track record of successfully executing very large scale, complex, transformational development and integration projects offshore. These are the kinds of projects that wear not been traditionally considered off-shore. Cognizant has deep technology expertise across a wide range of competencies. Technology competency and the quality of cognizant people are the highest-rated attributes in cognizant Customer Satisfaction Survey.Cognizant has a blue chip client base with many industry leaders that cognizant are regal to partner with and to contribute to the growth of their businesses. The clients go to extensive lengths to serve as references and champions of cognizant growth and innovation. Their client testimonials say Cognizant people go to comical lengths to solve problems, or just help out. Cognizant people model attracts talented, highly motivated, client- focused individuals with a can-do attitude. Cognizant never had a end point for project failure or for non-performance. This fact is reinforced by all of cognizant customers in the annual customer satisfaction survey conducted by a third-party. The flexibility, responsiveness, ownership and the assurance that they will never let you down is core to cognizant delivery model. Cognizant Technology Solutions Corp. NASDAQ, a leading provider of custom software development, integration and management services, employees are the most satisfied among Indian IT services companies. Cognizant has always been committed to providing the most interesting projects and the best realistic training and career development opportunities. The quality of the people that cognizant attracts, and Cognizants superior efficacy to develop cognizant associates will remain a strong competitive edge as the demand for IT professional worldwide continues to increase. The Info pulse encyclopaedism allows Cognizant to better serve customers in the Benelux region by adding local client partners, industry expertise, and local language capability. The acquisition further strengthens Cognizants industry leading 4th generation offshore delivery model, which has senior executives based close to clients in the US and Europe who are tightly integrated with a robust SEI CMMI Level 5 offshore capability. Customers in banking and financial services have b een among the first European companies to adopt a large scale offshore strategy, and Info pulse helps Cognizant further strengthen its position in this vertical. This acquisition will help cognizant current customers because they will get large scale offshore capabilities as cognizant as industry specific IT services, which has for several(prenominal) years leveraged offshore development in Eastern Europe. Cognizant has a strong track record in the financial sector and also value customer focus, has very high customer satisfaction, and a culture that provides an excellent balance between business and technology.PerspectiveA public company has cardinal key responsibilities to its shareholders, value creation and transparency. At Cognizant, transparency is essential to cognizant business. Especially in uncertain times, it builds trust between a company and its shareholders. And cognizant believe transparency is the best way to recognize long-term investment in the company. In an unce rtain economy it is even more(prenominal) critical that cognizant provide you with key entropy about cognizant embodied governance policies. These policies provide a frame work for the proper operation of cognizant company, invariable with cognizant shareholders best interests and the requirements of the law. Ensuring that Cognizants financial results fairly reflect the results of cognizant operations is of paramount importance to the company and to cognizant investors. Cognizant have made the last to provide cognizant shareholders and investors additional information to clarify cognizant policies, processes and controls to avoid uncertainty for shareholders and investors. Cognizants management has always assumed full accountability for maintaining Compliance with cognizant established financial report policies and for reporting cognizant results with objectivity and the highest degree of integrity. It is critical for investors and other users of the Consolidated Financial Stat ements to have confidence that the financial information that cognizant provide is timely, complete, relevant and accurate. Management is responsible for the fair presentation of Cognizants Consolidated Financial Statements, prepared in accordance with generally accepted accounting principles (GAAP), and has full responsibility to their integrity and accuracy. Management, with oversight by Cognizants Board of Directors, has established and maintains a strong ethical climate so that cognizant affairs are conducted to the highest standards of personal and corporate conduct. Management also has established an effective system of internal controls. Cognizants policies and practices reflect corporate governance initiatives that are compliant with the listing requirements NASDAQ and the corporate governance requirements of Sarbanes-Oxley. Cognizant are committed to rigorously and diligently exercising cognizant oversight responsibilities, maintaining the highest standards of integrity and principles of ethics, and exceeding the corporate governance requirements.Level 1 AnalysisCognizant (NASDAQ CTSH) is a global information technology services and consulting company with headquarters in Teaneck, New Jersey, United States and with significant operations in Chennai, India. Cognizant has been named to the 2009 Fortune 100 Fastest-Growing Companies List for the seventh consecutive year. Cognizant has also been named to the Fortune 1000 and Forbes Global 2000 lists for 2009. It has consistently ranked among the fastest evolution companies including the 2009 Business week 50 list of the top-performing U.S. companies, the Business week Hottest Tech Companies 2009, and the Forbes Fast Tech 2009 list of 25 Fastest Growing Technology Companies In America. Even though it is headquartered in New Jersey, USA, most of Cognizants employees are based in India. It has offices in Chennai, Bangalore, Coimbatore, Hyderabad, Kolkata, Mumbai, Pune, Gurgaon, Kochi and Budapest since 2008 , development centers in Shanghai, Buenos Aires and Amsterdam. Cognizant has over 64,000 employees. Cognizant Coimbatore center became the first company in the world to be certified for CMMI-Level5 per the latest model. Cognizant is among the top 10 companies receiving H-1B visas to bring foreign workers to the United States. The company recognizes the risk this poses to their business model. In a November 2008 SEC 10-Q filing, the company said Cognizant future success will depend on cognizant ability to attract and retain employees with technical and project management skills from developing countries, especially India. The vast majority of cognizant IT professionals in the United States and in Europe are Indian nationals. The ability of Indian nationals to work in the United States and Europe depends on their ability and cognizant ability to obtain the necessary visas and work permits. the company has been increasing its U.S. work force. In August 2009, the company announced plans to hire 100 people in Phoenix. Cognizant has seen year-over-year revenue growth of 32% in calendar year 2008, from $2.13 billion to $2.81 billion (USD). This growth has been realized across all the industries Cognizant serves including financial services, healthcare, retail, manufacturing and logistics. After the close of trading on 16 November 2006, Cognizant moved from the mid cap SP 400 to the SP 500. Cognizant operates in the IT services, business process outsourcing and consulting domains. Its primary competitors are Accenture, IBM, Capgemini, Tata Consultancy Services, Infosys and Wipro. Other competitors include IT services companies such as Computer Sciences Corporation, Perot Systems, Mahindra Satyam and HCL Technologies. Competitors in the Business Process Outsourcing space include Genpact and MphasiS (a division of EDS) (As of Wikipedia)Research FindingsAs a pioneer in the field of outsourcing information technology work to India, Cognizant Technology Solutions Corp. has done famouslyand so have its shareholders. A $10,000 investment made in the stock in early 2001 would be worth more than $120,000 today. After soaring another 38% so far this year, though, the Teaneck, N.J.-based companys shares are due for a leveling off. Investors would be wise to pass them by. At a closing price of $69.25, the stock is trading at 51 times its per-share earnings over the last 12 months. That amounts to a considerable bounteousness over India-based outsourcing companies Wipro, which trades at a multiple of 37 times earnings, and Infosys Technologies, which trades at 42 times earnings. In Historically, Cognizant has earned its fat premium because of its superior management and its distinct model. Unlike IT outsourcing firms that are based in India, Cognizant has several thousand staff members here who work directly with U.S. clients in their offices. Those on-site staffers are backed up by an army of 23,000 employees in India who develop software for clients incl uding major banks, health care companies, manufacturers and retailers. But Cognizants on-shore/off-shore niche is under threat as more multinational consulting firms follow the companys lead. In March, IBM announced it would open a new software development. (Tom Fredrickson, New York Business, 2006)Level 2 AnalysisThe Companys principal services include technology strategy consulting complex systems development enterprise software package implementation and maintenance data warehousing and business intelligence application testing application maintenance infrastructure management, and vertically-oriented business process outsourcing (V-BPO).The Company operates in focused business segments Financial Services, Healthcare, Manufacturing/Retail/Logistics and Other, which includes communications, media and information services and high technology. In September 2009, the Company announced the acquisition of substantially all of the assets of Pepper cognizant advisors the IT consulting s ervices division of Pepper cognizant consulting.Financial Services During the year ended December 31, 2008, the Companys Financial Services business segment represented approximately 45.6% of its total revenues. This business segment provides services to its customers operating in the industries, such as capital markets, banking and insurance. Cognizant focuses on the needs of dealers, asset management firms, depositories, clearing organizations and exchanges. The Company focuses on retail and technical banks, and diversified financial enterprises. Cognizant assists these clients in such areas as consumer lending, cards and payments, wholesale banking, risk management, investment management, corporate services and retail banking. It assists with the needs of belongings and casualty insurers, life insurers, reinsurance firms and insurance brokers. The Company focuses on such areas as business acquisition, policy administration, claims processing, management reporting, regulatory co mpliance and reinsurance.In 2008, its other business segment represented approximately 14.2% of its total revenues. The Companys communications industry practice serves communications service providers, equipment vendors and software vendors. Some of its solutions include supply chain management solutions, from pre-press to material procurement, circulation, logistics and vendor management business solutions covering advertising management, online media and e-business workflow automation covering the product development process for broadcasters spot ad get systems covering agency of record, traffic management, post-buy analysis and financial management digital asset management (DAM) and digital rights management (DRM), and operational systems, including ad sales, studio management, outsourcing armorial bearing and payments, along with content management and delivery. Its high technology segment is an independent software vendor (ISVs) and online service provider. (According to NAS DAC)ConclusionCognizant develops every application, cognizant compact every challenge, investment in every new resource, recommendation cognizant make is dedicated to a goal Making their customers businesses stronger by empowering them to be more responsive to their customers and to the competitive environment. Cognizant achieve this by focusing on the intersection of their clients emerging needs and the acceleration of business and technological change. Cognizant payload to innovation keeps them focused on the future and being ready at every level to service change.Cognizant Technology solutions present financial growth is strong. If we observe their annual report we will find that they operate a profitable business. 50% per share have grown up for earnings and revenues, where we can find a major growth.Referenceshttp//www.cognizant.com/html/home.asphttp//www.cognizant.com/html/content/aboutus/Cognizant_Q2_2009_Corporate_Fact_Sheet.pdfhttp//www.accessmylibrary.com/coms2/summary_ 0286-17675300_ITMhttp//www.reuters.com/finance/stocks/companyProfile?symbol=CTSH.O.