Cognizant is steadily expanding its roster of strategic clients--those with annual revenue potential of $5 million-$50 million--which gives it substantial recurring revenue opportunities.
Cognizant's operating margins have held up well in the face of heightened competition, higher wage inflation/attrition, and currency fluctuations.
Even though Cognizant is a late entrant to the fast-growing European region, it has been aggressive in its effort to increase its presence, and we believe Cognizant is well-positioned to grow in this market. Read more
Cognizant, which has a large number of clients in U.S., could face problems in attracting and retaining highly skilled foreign workers in the U.S. because of restrictions in H1B Visa availability. The issue of immigration reform has not yet been resolved.
Supply-side pressures (caused by voluntary employee attrition and wage inflation) could pose risks to operating margins in the future.
Foreign currency fluctuations can affect Cognizant's operating results, as the company earns its revenue in multiple currencies while its cost base is primarily in Indian rupees. Read more
We believe that Cognizant's stewardship of capital is standard. Cognizant is led by CEO Francisco D'Souza, who took over in 2007 when Lakshmi Narayanan moved into the vice chairman role. D'Souza had been COO since 2003 and previously led Cognizant's Read more
Based in Teaneck, N.J., Cognizant is a leading provider of offshore software development, maintenance, testing, and packaged implementation services. The company serves Read more
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