BUSINESSWEEK'S HOT GROWTH COMPANIES

Hot Growth Special Report 2006 >

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16

Cognizant Technology Solutions (CTSH)

This information-technology service provider is a five-time alumnus of BusinessWeek's Hot Growth ranking. Over the last three years, it has enjoyed 69.4% average annual growth in earnings. Steady operating margins of about 18% leave room for heavy reinvestment in Cognizant's main areas of expertise: the financial, insurance, and health-care industries. Strategic partnerships with fast-growing clients bring in between $5 million and $40 million in revenues per client per year. Revenues from new clients are growing about 60% a year -- way above the industry average of 40% -- according to Goldman Sachs. To meet that demand, Cognizant hired a record 9,000 employees last year.

Company Info

2005 Rank

14

Market Value*
($ Millions)

8,863.8

Sales*
($ Millions)

989.6

Sales Growth
(3-yr. avg. annual)

57.2 %

Profits*
($ Millions)

181.5

Profit Growth
(3-yr. avg. annual)

69.4 %

Return on Inv. Capital (3-yr.)

21.5 %

Share Price
12-Mo. Hi/Lo

65/41

Share Price
As of 4/28/06

64

Return on Equity

22.9 %

P/E Ratio

51

No. of Employees

24,300

Industry IT Consulting & Other Services
CURRENT
MARKET INFO

CTSH >

COMPANY WEB SITE >
Location Teaneck, N.J.
Phone 201 801-0233
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Cognizant Technology Solutions


Company Snapshot

Cognizant Technology Solutions provides custom information technology consulting and technology services in North America, Europe, and Asia. Its services include technology strategy consulting, complex systems development, enterprise software package implementation and maintenance, data warehousing and business intelligence, application testing, application maintenance, and infrastructure management. The company also offers outsourcing services, which include application maintenance, IT infrastructure outsourcing, and business process outsourcing. Its IT consulting and technology services comprise business process consulting, IT strategy consulting, technology consulting, software testing services, and application design, development, integration, and re-engineering. Cognizant Technology primarily offers its services to the companies in the financial, health-care, retail, telecommunications, and information services industries. The company was founded in 1994 and is headquartered in Teaneck, N.J.


Data provided by Capital IQ
 
Lakshmi Narayanan

Lakshmi Narayanan, 53

Chief Executive Officer, President and Director


Total Compensation*

$ 427,964

Total Options Value*

$ 74,066,634

* Fiscal Year 2005

DEGREES HELD
Indian Institute of Science, Bangalore - MS, Indian Institute of Science, Bangalore - MBA, Indian Institute of Science, Bangalore - BS


Executive Bio

Lakshmi Narayanan has been president of Cognizant Technology Solutions since March, 1998, and its chief executive officer since December, 2003. Narayanan served as chief operating officer from March, 1998, to December, 2003. He joined the Indian subsidiary of Cognizant as chief technology officer in 1994 and was elected president of that subsidiary on Jan. 1, 1996. Prior to joining Cognizant, from 1975 to 1994, Narayanan was the regional head of Tata Consultancy Services, a large consulting and software services company located in India. He has been a director of Cognizant Technology Solutions since 2003. Narayanan holds a BS, MS, and an MBA from the Indian Institute of Science.


Management Team

Key Executives

Lakshmi Narayanan; Gordon Coburn; Francisco D'Souza; Ramakrishnan Chandrasekaran

Board Directors

Lakshmi Narayanan; John Klein; Robert W. Howe; Venetia Kontogouris; Robert E. Weissman; Thomas M. Wendel


Executive Data provided by Capital IQ