Cognizant enters 'breakaway' AI-led growth phase: CEO

Core Insights - Cognizant is entering an AI-linked 'breakaway' growth phase, moving away from a linear business model tied to the number of engineers deployed on projects [2][12] - The company reported full-year revenues of $19.7 billion in 2024, slightly ahead of Infosys [3][12] - Cognizant is exploring options for a secondary listing in India to attract new investors [3][12] Job Creation and Economic Impact - Cognizant aims to create 25 million formal jobs annually to achieve a per capita income of $15,000 to $20,000, contributing to the goal of a $30 trillion economy by 2047 [4][12] - The company is investing ₹1,600 crore in a new campus in Visakhapatnam, expected to create 8,000 to 10,000 jobs [11][12] - Cognizant's strategy includes building campuses rather than leasing buildings, with an investment of $100-200 million for every 10,000 jobs created [4][12] Technology and Client Spending - Clients are recalibrating technology spending around generative and agentic AI, with expectations for increased demand by 2026 [2][12] - Cognizant noted that 30% of its code is AI-based, reflecting a shift towards integrating technology with job creation [5][12] - Despite the shift to AI, clients are not reducing tech spending but reallocating savings to build agentic capital [6][12] Workforce and Productivity - Cognizant added 20,000 freshers to its workforce this year, achieving a 37% productivity lift at the bottom of the pyramid compared to 17% at the top [8][12] - The transition from classical software to agentic AI-led work is expected to require more human capital, contrary to fears of job losses in the IT services sector [7][12] Strategic Acquisitions and Partnerships - Cognizant allocates 50% of its cash flow to identify strategic acquisition opportunities to fill gaps in its business [9][12] - The company views itself as a platform for service companies and will continue to seek strategic opportunities [9][12] - Kumar commented on TCS's $2 billion joint venture with TPG for data centers, noting it as an interesting opportunity but did not confirm similar plans for Cognizant [10][12]