A decade ago, Cognizant Technology made a curious decision to keep its profit margin lower than its peers. Today, the strategy is paying off
The Firm
Cognizant Technology Solutions, ranked 7th in the Forbes List of 25 Fastest Growing Technology Companies in America
The Boss
Francisco D’Souza, 40, CEO
The Gamble
To sacrifice some profit and reinvest it in growth
The Risk
Investor discontent at lower returns
The Reward
Among the least hit by the slowdown, growth intact
Track Record
Five-year average revenue growth 48 percent, net profit growth 46 percent
Future Projects
10 percent revenue growth in 2009 vs. industry growth in single digits for 2009-10
Another such investment was in 2003-04-05. Our company and our industry were poised for rapid growth and we said the best way to capitalise on growth at that time is to have a best team of people at short notice for our clients. We brought [staff] utilisation to lower levels.
(This story appears in the 17 July, 2009 issue of Forbes India. To visit our Archives, click here.)