Barron’s: Cognizant’s President Says the Company Creates Value by Delivering Higher Revenue Growth with Stable Margins

Gordon Coburn, President, Cognizant

“The way we create value for shareholders is by having higher revenue growth that leads the industry with stable margins,” says Gordon Coburn. “Our outlook for 17% revenue growth this year is based in part on new initiatives under SMAC. We are focused on more and more consulting projects that allow us to show companies how to re-tool for things such as letting an insurance rep write a policy from their iPad. That’s already being done today, but to do it right requires things like fixing back-office systems that handle policy pricing, risk assessment, and actuarial work.

Coburn adds, “Cognizant has been investing in technology to make systems more SMAC-like for years, and is now finding the opportunity to actually sell it as a project to customers. Although it’s too soon for SMAC to make a material contributor to revenue, the company is doing SMAC work for 60% of clients.”

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