THE BUSINESSWEEK 50 RANKINGS + 25

12

Cognizant Technology Solutions

Even in the fast-growing outsourcing industry, Cognizant is a standout. Propelled by the increased outsourcing of health-care data processing and by a growing number of European clients, Cognizant’s 2006 sales jumped 61%. Its bread and butter, though, remains managing financial and information-tech services for U.S. clients; companies such as Wells Fargo, Citigroup, and Aetna account for 86% of its sales. To keep growth humming, CEO Francisco D’Souza plans to hew to the company’s policy of investing aggressively in operations and staff, adding 16,000 workers, mostly in India and China. And he plans to spend $200 million on more office space and infrastructure in India, where Cognizant has 70% of its operations. The outlay comes at the cost of margins lower than Indian rivals Wipro and Infosys Technologies, but so far these bets have paid off in growth.

Overall Grade

A

Market Data

CTSH

Market Value
(2/28/2007)

$12.9 Billion

Profitability*

29.5%

A-

Sales Growth Rate**

56.4%

A

12-Month Sales

$1.4 Billion

12-Month Net Income

$0.2 Billion

Total Return Past 12 Months

56.6%

Past 36 Months

281.6%

Economic SectorInformation Technology
IndustryIT Consulting & Other Services
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.

Francisco D'Souza

Francisco D'Souza, 38

CEO since 2007


The BW 50 + 25 Interactive Scoreboard

More BW Stories on Cognizant Technology Solutions


More BW50 Profiles






Data as of 2/28/07 provided by Standard & Poor's Compustat