Cognizant is the only major offshore services firm that is not listed in India. This bit of trivia might explain why it is so different from the Indian firms. While Indian firms have tried to keep a balance between margins and growth, Cognizant has consciously reinvested in the business so that it can grow faster, even if that means lower margins.

Even the execution strategy has been different. Cognizant has built depth at the cost of breadth. Even today, its revenue, by and large, comes from ADM whereas most Indian firms have consciously brought that down to 50% levels. Similarly, three verticalsfinancial services, healthcare, and manufacturing/retailgave it more than 86% of its revenues. And the Americas contributed as much as 86%. Call that focus or call that putting too many eggs in one baskets, so far it has played well for Cognizant. Cognizants growth so far has remained a credible story. It has delivered.

l Start-up Year: 1994 lProducts & Services: IT services l Address: #5/535, Old Mahabalipuram Road, Thoraipakkam, Chennai 600097 l Tel: 42096000 l Fax: 42096060 l Website: www.cognizant.com

Yet, there are concerns: It has been late in tapping the high-growth infrastructure services market. Its too dependant on the US market. So if the dollar slide continues, it will hit Cognizant far more than it will hit any other offshore firm.

The new 38-year old CEO, Francisco DSouza, who took over in January, has already initiated a few changes that will broaden the companys focus without changing the growth-oriented DNA. There are plans to invest heavily in training and human resources development in India, where companies like Infosys and Satyam have a distinct edge.

So far, Cognizant has chosen to remain a niche player. At some stage of companys evolution, it may have to change that. Question is: is the time now? DQ

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