Business Analysis of Cognizant

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Cognizant

COGNIZANT

Business Overview

Cognizant Technology Solutions Corporation provides information technology (IT), operations and technology consulting, infrastructure, and business process services worldwide. The company operates through four segments: Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other. Its consulting and technology services include strategy consulting, business and operations consulting, technology strategy and change management, and program management consulting services; application design and development; systems integration; and application testing, consulting, and engineering services, as well as enterprise information management services. The company also develops, licenses, implements, and supports proprietary and third-party software products for the healthcare industry, including solutions for health insurance plans, third party benefit administrators, and healthcare providers. In addition, it provides outsourcing services, such as application maintenance services; IT infrastructure services; and business process services comprising clinical data management, pharmacovigilance, equity research support, commercial operations, and order management services, as well as related services, including platform-based services. The company serves various industries, including banking and insurance; healthcare and life sciences; manufacturing and logistics; retail, travel, and hospitality; consumer goods; communications; information, media, and entertainment; and technology. The company markets and sells services through its professional staff, senior management, and direct sales personnel. Cognizant Technology Solutions Corporation was founded in 1998 and is headquartered in Teaneck, New Jersey.

Cognizant

Cognizant


R&P Rank: 208
Sector: Technology
Industry:IT Consulting and Outsourcing Services
H.Q Location:New Jersey
Website: www.cognizant.com
Company Address:
500 FRANK W. BURR BLVD., TEANECK NJ 07666
Ph:201-801-0233

Business Analysis of Cognizant

The Technology Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Cognizant compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Cognizant to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Cognizant with an interactive chart.

  1. Revenue Growth: Cognizant reported a revenue growth of 8.6% year-on-year during 2016. IT Consulting and Outsourcing Services Industry grew at -0.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Cognizant spent 60.1% of its total revenues on COGS. IT Consulting and Outsourcing Services industry average (COGS share of revenue) in the same period was 65.9%
  3. R&D share of Revenues: Cognizant R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Cognizant spent 20.2% of its total revenues on Sales, Marketing, and General Administration (SG&A). IT Consulting and Outsourcing Services industry average SG&A spending in the same period was 19.0%
  5. Inventory share of Revenues: Cognizant Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Cognizant invested 1.3% of its total revenues on Accounts Payable (A/P) IT Consulting and Outsourcing Services industry average Accounts Payable investment in the same period was 7.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Cognizant invested 21.5% of its total revenues on Accounts Receivable (A/R). IT Consulting and Outsourcing Services industry average Accounts Receivable investment in the same period was 33.6%
  8. PP&E share of Revenues: As a percentage of revenue, Cognizant invested 9.7% of its total revenues on Property, Plants, and Equipments (PP&E). IT Consulting and Outsourcing Services industry average PPE investment in the same period was 11.5%
  9. Intangibles share of Revenues: As a percentage of revenue, Cognizant invested 26.0% of its total revenues on Intangibles. IT Consulting and Outsourcing Services industry average Intangibles investment in the same period was 38.5%
  10. Net Margins: Cognizant Net Margins in the year 2016 were 11.5%. IT Consulting and Outsourcing Services industry average Net Margins in the same period were 8.5%

Sector and Industry Association of Cognizant

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Cognizant is associated with Technology Sector and IT Consulting and Outsourcing Services Industry.

Technology sector is comprised of the following industries: Computers Systems and Peripherals; Software; Semiconductor; IT Consulting and Outsourcing Services; Networking Equipment and Services; Internet; Other. The definitions for each of the industries is as follows:

  • Computers Systems and Peripherals industry includes companies primarily engaged in manufacturing of personal computers, servers, mainframes, workstations, and other computer accessories and peripherals such as storage drives, mice, keyboards and printers. It also includes manufacturers of mobile phones and tablets.
  • Software industry includes businesses providing software products such as operating systems, productivity suites, enterprise software, data and analysis software, advertising and marketing software, engineering and manufacturing software, networking software, and IT management software. It also includes companies providing industry-specific software focused on different sectors such as Financials, Automotive, Telecom, Utilities, Travel, Real Estate, Media, and Publishing.
  • Semiconductor industry includes companies primarily engaged in manufacturing and distribution of semiconductor products such as microprocessors, chipsets, motherboards, flash memory, and wired and wireless connectivity products. It also includes companies that provide semiconductor equipment and services to the semiconductor industry.
  • IT Consulting and Outsourcing Services industry includes companies primarily engaged in providing information technology consulting and outsourcing services to other businesses. The services include IT consulting, systems integration, application development and management, IT infrastructure management, and network operations management.
  • Networking Equipment and Services industry includes companies primarily engaged in manufacturing and distribution of networking and communications equipment for transporting data, voice, and video traffic across intranets, extranets, and the Internet. The key products include routers and switches for local and wide-area networks, cable modems, teleconferencing equipment, and wireless access points.
  • Internet industry includes Internet-based businesses providing products and services such as search engines, social networking, web hosting, email, domain name registration, and eCommerce. It also includes industry information/services portals focused on different sectors such as Financials, Automotive, Travel, Health, Real Estate, Media, and Publishing.
  • Other industry includes companies providing products such as photocopiers, fax machines, point of sale machines, audio/video technologies, and video games. It also includes technology companies that are not part of other six technology industries.

Industry Ranking of Cognizant

With $13.5 billion revenues, Cognizant ranked number 5 of all the companies in the US IT Consulting and Outsourcing Services industry. There were a total of 28 public companies in the US IT Consulting and Outsourcing Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US IT Consulting and Outsourcing Services industry by revenues during 2016 were:

  1. IBM ($79.9 billion)
  2. Hewlett Packard Enterprise ($50.1 billion)
  3. Accenture ($34.8 billion)
  4. DXC Technology ($18.1 billion)
  5. Cognizant ($13.5 billion)
  6. Automatic Data Processing ($11.7 billion)
  7. Leidos ($7 billion)
  8. NCR ($6.5 billion)
  9. Conduent ($6.4 billion)
  10. Insight Enterprises ($5.5 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Cognizantand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of cognizant

Hewlett Packard Enterprise (HPE) Business Analysis – Analyze Historical Performance, Strategic...

Hewlett Packard Enterprise Co with $50 billion revenues in the year 2016 was the number 2 IT Consulting and Outsourcing Services company. Read this report to know the top competitors of Hewlett Packard Enterprise and identify growth and cost optimization opportunities of Hewlett Packard Enterprise

Accenture (ACN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Accenture Plc with $35 billion revenues in the year 2016 was the number 3 IT Consulting and Outsourcing Services company. Read this report to know the top competitors of Accenture and identify growth and cost optimization opportunities of Accenture

DXC Technology (DXC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

DXC Technology Co with $18 billion revenues in the year 2016 was the number 4 IT Consulting and Outsourcing Services company. Read this report to know the top competitors of DXC Technology and identify growth and cost optimization opportunities of DXC Technology

Automatic Data Processing (ADP) Business Analysis – Analyze Historical Performance, Strategic...

Automatic Data Processing Inc with $12 billion revenues in the year 2016 was the number 6 IT Consulting and Outsourcing Services company. Read this report to know the top competitors of Automatic Data Processing and identify growth and cost optimization opportunities of Automatic Data Processing

Leidos (LDOS) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Leidos Holdings, Inc. with $7 billion revenues in the year 2016 was the number 7 IT Consulting and Outsourcing Services company. Read this report to know the top competitors of Leidos and identify growth and cost optimization opportunities of Leidos

NCR (NCR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

NRC Corp with $7 billion revenues in the year 2016 was the number 8 IT Consulting and Outsourcing Services company. Read this report to know the top competitors of NCR and identify growth and cost optimization opportunities of NCR

Revenues Analysis

Cognizant (CTSH) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Cognizant Technology Solutions Corp (CTSH) from 2012 to 2016. Cognizant generated a total of $13.5 billion revenues during 2016. Cognizant reported a revenue growth of 8.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Cognizant (CTSH) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Cognizant Technology Solutions Corp (CTSH) from 2002 to 2016. Cognizant generated a total of $13.5 billion revenues during 2016. Cognizant reported a revenue growth of 8.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Cognizant (CTSH) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Cognizant Technology Solutions Corp (CTSH) revenue growth with IT Consulting and Outsourcing Services industry growth during the last five years from 2012 to 2016. Cognizant reported a revenue growth of 8.6% year-over-year during 2016. The IT Consulting and Outsourcing Services industry growth was -0.6% year-over-year during 2016. Cognizant growth was faster than the industry during 2016.

Profit Analysis