Business Line: Cognizant’s Group Chief Executive for Technology and Operations Talks About Cognizant’s Reinvestment Strategy

R. Chandrasekaran, Group Chief Executive for Technology and Operations, Cognizant

“When we took the company public in 1998, we made the decision to keep our margins lower but stable, and take those dollars and reinvest them for long-term growth, industry leadership and deep differentiation,” says R. Chandrasekaran. “We adopted the model of maximizing market share as we believe we are in a recurring revenue business and we are still in the early stages of market penetration. We are able to invest that difference back into business in a number of different ways, such as client-facing teams, consulting practice, and newer services such as SMAC.”

“Investment in driving revenue growth over margin expansion, coupled with the ‘Two-in-a-Box strategy, has helped Cognizant inch closer to Tata Consultancy Services in terms of revenue per quarter,” says Erin Hichman, Analyst, Professional Services Practice, Technology Business Research, Inc, US.

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