Stock Research and Analysis

by Andrew Lange

Bulls Say

European companies are becoming more willing to adopt long-term outsourcing programs given cost and staff pressures. This shift could provide a meaningful tailwind for Cognizant’s expanding European operations.
New virtualized business models and cloud and mobile technologies provide long-term growth opportunities for Cognizant’s emerging mobile, cloud, analytics, and social capabilities.
Cognizant’s focus on relationship building and management has led it to foster close ties with market-leading companies. These very sticky relationships ensure significant recurring business. Read more 

Bears Say

Although improving, Cognizant’s brand cachet is not as strong as some of the longer established industry participants.
Limitations on the number of H1B visa holders that Cognizant is allowed to employ could starve the company of much-needed IT personnel.
With approximately 77% of revenue generated in North America, Cognizant is highly exposed to macroeconomic conditions in the region. Read more 

Management

We view Cognizant’s stewardship of capital as standard. Francisco D’Souza was appointed group CEO on Jan. 1, 2007, and Gordon Coburn was appointed as president on Feb. 6, 2012. Both men have a wealth of experience at Cognizant, having been with the   Read more 

Profile

Cognizant is an IT services provider headquartered in Teaneck, NJ. The company was founded in 1994; employs close to 170,000 people; and provides such services as technology   Read more 

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