CIOL: Cognizant’s Group Chief Executive for Technology and Operations Talks About the Company’s Growth Drivers and Differentiated Operating Model

“We look to our future with a sense of optimism,” says R. Chandrasekaran. “While the macro environment, especially in Europe, will remain volatile in the coming months, we are convinced that our value proposition is more relevant than ever.”

When asked about Cognizant’s model of maintaining low operating margins and yet delivering higher growth and profits, Chandrasekaran says, “We manage our non-GAAP operating margins within a range of 19 to 20 percent and invest the excess back into our business in a number of different ways: in strong client-facing teams; in providing superior customer intimacy and an enhanced relationship experience; in further strengthening that experience through investments in consulting teams and program management resources to drive large-scale organizational transformation. We also invest in new service offerings to stay on top of our clients’ evolving business and technology needs."

"In the over thirteen years of our listed history," Chandrasekaran adds, "we have not missed a beat on presenting operating margins within this range despite changes in the external environment." He says, "Our goal is simple. We want to be the Number 1 in the minds of all our clients and employees. Our belief is that if we do it, we will be able to continue to post industry-leading revenue growth.”

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