2014 ANNUAL REPORT
DIGITAL BUSINESS
DECODING
OPPORTUNITY
Helping clients embrace the new
digital customer.
PROACTIVELY ADDRESSING
BUSINESS NEEDS & INVESTING
IN NEW CAPABILITIES & SKILLS
FUELS SOLID GROWTH &
STRENGTHENS CLIENT
RELATIONSHIPS
Revenues (In thousands)
Operating Income (In thousands)
2014
2014
2014
2014
$10,262,681
$10,262,681
$10,262,681
$10,262,681
2013
2013
2013
2013
$8,843,189
$8,843,189
$8,843,189
$8,843,189
2012
2012
2012
2012
2011
2011
2011
2011
2010
2010
2010
2010
$7,346,472
$7,346,472
$7,346,472
$7,346,472
2010
2010
2010
2010
Stockholders’ Equity (In thousands)
2012
2012
2012
2012
2011
2011
2011
2011
$6,135,791
$6,135,791
$6,135,791
$6,135,791
2010
2010
2010
2010
1
$4,854,383
$4,854,383
$4,854,383
$4,854,383
$3,584,431
$3,584,431
$3,584,431
$3,584,431
$1,677,910
$1,677,910
$1,677,910
$1,677,910
$1,361,496
$1,361,496
$1,361,496
$1,361,496
$1,136,468
$1,136,468
$1,136,468
$1,136,468
$861,852
$861,852
$861,852
$861,852
Employees
$7,740,218
$7,740,218
$7,740,218
$7,740,218
$3,952,886
$3,952,886
$3,952,886
$3,952,886
2013
2013
2013
2013
2011
2011
2011
2011
$4,592,389
$4,592,389
$4,592,389
$4,592,389
2014
2014
2014
2014
$1,884,878
$1,884,878
$1,884,878
$1,884,878
2012
2012
2012
2012
$6,121,156
$6,121,156
$6,121,156
$6,121,156
2013
2013
2013
2013
2014
2014
2014
2014
2014
2014
2014
2014
211,500
211,500
211,500
211,500
2013
2013
2013
2013
171,400
171,400
171,400
171,400
2012
2012
2012
2012
2011
2011
2011
2011
2010
2010
2010
2010
156,700
156,700
156,700
156,700
137,700
137,700
137,700
137,700
104,000
104,000
104,000
104,000
TO OUR
STOCKHOLDERS
2014 MARKED COGNIZANT’S 20TH YEAR OF STRONG
GROWTH, INNOVATION AND INDUSTRY LEADERSHIP.
OUR SHARP FOCUS ON HELPING CLIENTS NAVIGATE
A RAPIDLY CHANGING BUSINESS AND TECHNOLOGY
LANDSCAPE DROVE STRONG GROWTH ON THE TOP
LINE, ALONG WITH RISING NET INCOME AND SOLID
OPERATING MARGINS.
Rather than merely looking back at our past performance,
we prefer to also look forward to the enormous opportunities
that are emerging from the growing shift to digital business.
Through our investments in new solutions and services, key
acquisitions that expand our capabilities, the growth and
development of our teams, and continuous reinvestment
in our customers’ success, we are working to ensure that
Cognizant is well positioned to help clients decode the vast
opportunity – and deliver on the potential – of this new digital
business era.
2
3
LOOKING
DIFFERENTLY
AT DIGITAL
Nearly every company, across every industry, is striving
Capturing the digital high ground requires organizations
hard to become more digital. Getting there requires
to see every aspect of the business through the customer’s
an accomplished partner with a proven track record of
eyes. It also requires an intimate understanding of how
delivering tangible digital business results. Moreover,
nearly every physical-world device can be instrumented
it requires a pragmatic approach to building and
in ways that generate massive volumes of potentially
expanding digital backbones powered by social, mobile,
meaningful business data — revealing user behaviors,
analytics and cloud technologies (the SMAC Stack),
interests and desires. To lead in today’s new digital
as well as sensors and intelligent process automation
era, businesses must extract value from ambient and
tools. We are helping clients create new business models
behavioral data to design better products, improve user
and build the foundational infrastructure necessary to
experiences, and inform strategic decision making. Making
power digital success.
and applying meaning from digital data by employing
While digital is pivotal, today’s business models are
based on value chains that integrate both physical and
advanced analytics informs business strategy and helps
our clients seize first-mover advantage.
virtual elements. In fact, some companies are already
As business becomes more IT-intensive, organizations
proving that the value of the “virtual” — information
must become increasingly agile, and continuously
and digital interactions — can far outstrip traditional
innovate to keep pace with the dynamics of today’s digital
physical value propositions. This is possible because
era. Cognizant is well positioned to help enterprises
new technologies and nearly-pervasive connectivity
exceed customer expectations for new digital services
have created an almost endless supply of valuable
and experiences that drive market differentiation and
information and opportunities to connect businesses,
performance. We work with our clients every day to help
products, people, organizations, machines, and devices.
them enhance efficiencies and productivity, while at the
We are architecting new value chains, operating models
same time reimagining their businesses and building new
and human-centric experiences that simplify digital
capabilities to get the most from today’s blended digital
interactions and transactions across existing and
and physical worlds.
emerging ecosystems, helping our clients achieve new
levels of business performance.
4
DELIVERING
ON THE DIGITAL
BUSINESS
IMPERATIVE
For several years we have helped clients implement new
Our Cognizant Digital Works™ practice brings together
digital solutions. Powered by SMAC Stack technologies,
multi-disciplinary industry teams consisting of consultants,
we provide a comprehensive approach informed by new
digital technologists, designers, business process experts,
methodologies, as well as industry-specific business
and data scientists to create cohesive roadmaps and ideas
knowledge, to enable organizations to answer today’s
to help clients quickly and effectively embed digital into
unknowns and address tomorrow’s challenges to reach
the core of their businesses. (See page 15.)
their digital potential. We collaborate closely with clients —
sharing new thinking, methodologies, and deep domain
expertise to help them take advantage of new business
opportunities as they emerge.
alongside our teams to visualize, prototype and plan new
initiatives that will accelerate the digitization of business
by creating, distilling and applying meaning from Code
This experience helped us create a comprehensive,
Halos – the digital information that surrounds people,
integrated approach to enable clients to quickly and
processes, organizations and devices. (See page 16.)
effectively infuse digital into their businesses. We
are working with business and technology leaders
across industries to strategically rethink business and
operating models, and with CIOs and CTOs to create the
foundational technologies to securely digitize business
processes and drive outperformance in this new digital
age. We understand that clients need to accelerate
these initiatives, but may lack the internal structure and
wherewithal to quickly create value.
5
At our Cognizant Digital Works Collaboratory, clients work
As business success becomes more IT-dependent,
we are developing ways organizations can create
differentiating value with the next generations of gamechanging technologies, including ultra-low cost sensors,
embedded software, 3D printing, instrumentation, and
advanced security. (Turn to page 14 to see how Cognizant
Technology Labs is developing advanced technologies and
helping our clients achieve their IT objectives.)
BUILDING
DIGITAL SKILLS,
SCOPE & SCALE
We made several acquisitions last year to expand our capabilities and enhance
our portfolio of digital solutions. The acquisition of TriZetto, completed in
November 2014, allows us to provide a new vertically-integrated service
model for the healthcare sector, and create new revenue opportunities amid
the industry’s rapid digitization. TriZetto is a leading provider of healthcare
IT software and solutions that complement and extend Cognizant’s existing
offerings. Joining forces with TriZetto enables us to meet the needs of an
industry undergoing profound change due to reform, cost pressure and shifting
responsibilities between payers and providers. TriZetto works with some
245,000 providers and about 350 payers, and touches 180 million covered lives
in the U.S. Together, we create an integrated portfolio of capabilities that will
uniquely position us to help clients achieve higher operational efficiency while
re-imagining care for the future.
We acquired Cadient Group, a full-service digital marketing agency serving
companies in the pharmaceutical, biotechnology, consumer health, and medical
device industries. In addition, the acquisition of itaas, a U.S.-based digital video
solutions company, allows us to offer a broader range of digital video services
for clients in the cable, telecommunications and high-technology industries.
We also purchased Odecee, a provider of digital solutions to businesses in
the Australia-New Zealand region with expertise in delivering leading-edge
enterprise mobility, Web and cloud solutions to clients in the financial services,
insurance, healthcare, logistics and communications sectors.
6
STRONG FINANCIAL
PERFORMANCE SPANS
BUSINESSES & BORDERS
Looking at our 2014 results, revenue rose to $10.26
optimization, regulatory compliance, real-time risk
billion, up 16% from 2013. GAAP net income increased
monitoring, and fraud and trade surveillance.
17% to $1.44 billion, or $2.35 per diluted share. Diluted
EPS on a non-GAAP basis, excluding stock-based
compensation costs, acquisition-related charges and
net non-operating foreign currency exchange gains and
losses, was $2.60. GAAP operating margin was 18.4%,
while non-GAAP operating margin, excluding stock-based
compensation costs and acquisition-related charges, was
20.2%, slightly above our targeted 19% to 20% range.*
We ended 2014 with $3.77 billion in cash and short-term
investments, supporting our capacity to grow along with
our clients’ emerging needs.
We have continued to grow across vertical sectors,
regions and lines of service — with a particularly strong
increase in strategic accounts, which we define as clients
with the potential to generate $5 million to $50 million or
more in annual revenue. We had 271 strategic accounts
at the end of 2014, an increase of 28 over 2013. With our
strong client relationships, deep knowledge of industryspecific business processes, understanding of legacy IT
architectures, global delivery capability and large-scale,
Our Healthcare segment, which consists primarily of
our payer, pharmaceutical and medical-device clients
and now our TriZetto business, grew 18.7% year-overyear (15.2% excluding TriZetto). The Life Sciences
segment began stabilizing after two challenging years.
Improved performance was driven by strategic supplier
consolidation and cost optimization across many existing
and new clients. The business also saw increased demand
for end-to-end service offerings across applications
and infrastructure, leveraging cloud technologies and
platforms.
Revenues in our Retail, Manufacturing and Logistics
segment were up 12.1% from 2013. We are seeing more
demand, particularly in areas such as modernizing supply
chains, and digital and e-commerce engagements. Our
Other segment, which includes high-tech, communications,
as well as information, media and entertainment clients,
was up 20.3% year-over-year, in part driven by new
engagements with our existing clients.
multi-service integration, we are well positioned to win
Growth was strong across all geographic regions. North
and execute on such major engagements.
America revenues rose 14.9%, including TriZetto. Europe
Our Financial Services segment grew 15.3% year-overyear, powered in part by continued strength in our
insurance practice, where demand is accelerating for
end-to-end managed services. In banking, underlying
business drivers continued to pivot around cost
was up 19.3% overall, with especially strong growth
in Continental Europe, driven by a shift toward larger,
multi-year global sourcing engagements. We continued
to expand in other key regional markets, including India,
Singapore, Australia, Japan and Hong Kong, with
revenues increasing 23.6% over the prior year.
* Non-GAAP diluted EPS (earnings per share) and non-GAAP operating margin are not measurements of financial performance prepared in accordance with GAAP.
See “Non-GAAP Financial Measures” beginning on page 53 of the Company’s Annual Report on Form 10-K included in this Annual Report for more information and a
reconciliation to the most directly comparable GAAP financial measures.
7
EXPANDING
HORIZONS OF
OPPORTUNITY
We continue to pursue a “three-horizon” strategy to grow
our businesses: optimizing Horizon 1 core IT services;
building momentum and scale in Horizon 2 offerings —
Cognizant Business Consulting (CBC), Cognizant Business
Process Services (BPS) and Cognizant Infrastructure
Services (CIS); and incubating new technology architectures
such as SMAC, as well as new delivery models and markets,
in Horizon 3.
All of our Horizon 2 offerings achieved greater critical mass
in the past year. BPS grew significantly, winning clients in
financial services, insurance and healthcare. CBC continued
to grow faster than the company overall, offering end-toend solutions characterized by deep industry knowledge,
technology expertise and process acumen. CIS is seeing
solid demand from clients looking to simplify, automate and
make their infrastructure more predictable by incorporating
highly advanced managed services.
(See page 13.)
8
PACKAGING
MULTI-SERVICE
INTEGRATION &
INDUSTRY
SOLUTIONS
Achieving end-to-end service productivity by bringing multiple capabilities together
is another area in which we are excelling. This integrated approach — what we call a
multi-tower or platform solution – responds to client needs for synergistic application,
business process, consulting and infrastructure services, informed by deep domain
expertise. Increasingly, we are bringing together the problem-solving skills and
solutions across our company to deliver higher levels of business value to clients.
A prime example of the value of a multi-tower engagement is our agreement with
Health Net, a managed care company, which engaged Cognizant to provide an
integrated array of offerings, including consulting, technology and administrative
services to serve a wide range of vital functional areas.
(See page 18.)
9
NEW DIGITAL ERA
REQUIRES TALENT &
DELIVERY SMARTS
We have continued to invest in building an at-scale
in 2014. We have expanded our recruitment into areas
delivery network. Today, our global delivery ecosystem
such as analytics, artificial intelligence, data science
spans more than 75 delivery and operations centers
and human factors engineering to address digital-
globally and supports customer operations in 48
driven opportunities. And we have a major commitment
countries, allowing us to access a world of talent and
to training and development, earning the #1 rank in
expertise. In the U.S. during 2014, we added a delivery
the Association for Talent Development BEST Awards
and operations center in Charlotte, NC and expanded
program for the second year running.
our presence in Tampa, FL. We also expanded delivery
center operations in San Jose, Costa Rica; Amsterdam,
the Netherlands; Hamburg, Germany; Budapest, Hungary;
and Stockholm, Sweden. Through acquisition, we added
delivery centers in Denver, CO in the United States;
London, Ontario, Canada; and Pune and Noida, India.
We continue to broaden and deepen our diversity
programs, which enhance opportunities for women,
veterans and other affinity groups. For example, we have
instituted a program that creates a positive workplace for
military veterans, and facilitates an easier transition back
into civilian life with careers that utilize their advanced
Growing our talent and skill sets is an important way
leadership skills and strong work ethic. Following the 2013
we are positioning Cognizant to meet clients’ digital
launch of the U.S. “Veterans in Technology” program,
business needs. We focus on recruiting and hiring the
we hired over 300 veterans. In 2014, we moved up the
best talent from across the IT industry, key vertical
command chain by hiring 14 officers into our Advanced
markets and leading universities around the world, and
Solutions Group. This initiative will continue in 2015 with
are proud to have crossed the 200,000 employee mark
the planned hiring of additional officers into our Cognizant
Business Consulting and Insurance business units.
10
MAKING A
DIFFERENCE
Just as we help leading global businesses improve and innovate to seize
new opportunities, we are using our capabilities to drive improvements and
innovations in the world around us. That means devoting our talent, expertise
and passion to making a difference in areas such as education, human potential
and the environment.
At the 2014 White House Maker Faire, we committed to tripling our Making the
Future initiative to support STEM activities in the U.S., aiming to provide 1.5
million hours of “making” programs for 25,000 children in 200 communities
by 2017. Our Outreach volunteer effort supports learning initiatives in India and
other countries, with over 25,000 associates dedicating over 300,000 hours
to mentoring, career counseling and talent development. A key focus is our 1004
effort, which aims to help 100 schools in India achieve a 100% pass rate, 100%
graduation rate and 100% employability for graduates. Last year, Cognizant
Foundation helped set up smart classrooms and computer and science
laboratories that cater to underprivileged students in rural areas.
We remain responsible stewards of the environment. Since 2013, we have
powered several major facilities in India with renewable energy; over 10% of our
global energy consumption now comes from wind and biomass. Our Go Green
energy program has reduced per capita carbon emissions 43% versus the
2008 baseline. Employee volunteers, known as Green Brigadiers, participated
in over 100 environmental projects — planting trees, cleaning up waterways, and
tracking flora and fauna in protected forests using digital technologies.
11
RECOGNIZING
RESULTS
These are exciting times for our industry. The pace of change and innovation is
breathtaking. Over the next decade, organizations around the world will race to
deploy new technologies, decode digital opportunities and recode business success.
We are proud that Cognizant’s commitment to excellence in both client service
and financial performance continues to be acclaimed by independent sources.
The company is ranked #308 among the “Fortune 500” (up 44 places from 2013),
and has appeared on Fortune’s “World’s Most Admired” list for seven consecutive
years. We also have been cited by independent authorities for leadership in such
areas as business intelligence (Forrester Research) and business analytics for
business process services (IDC MarketScape).
With our ability to bring together a range of integrated solutions, deep domain
expertise, a global delivery ecosystem, best-in-class talent, and a culture for
challenging the status quo, Cognizant occupies a uniquely valuable position in
the business and technology services marketplace. We are confident that these
strengths will lead to new opportunities to partner with clients, while providing solid
performance for stockholders, a rewarding environment for our team members, and
fruitful engagement in our communities.
Sincerely,
Francisco D’Souza
Chief Executive Officer
12
ADVANCING DIGITAL BUSINESS
COGNIZANT INFRASTRUCTURE SERVICES
INFRASTRUCTURE
THAT ACCELERATES
BUSINESS
As entire industries are disrupted by digital, businesses must grow and operate
efficiently, and with unprecedented speed and agility to anticipate and adapt to
technological change and meet, if not foresee, customer demand. Increasingly,
this means creating an IT infrastructure layer that enables and drives business
change and supports new digital capabilities, allowing the organization to be
more flexible, resilient, automated, organized and innovative. An infrastructure
that accelerates business by delivering rich and meaningful experiences to our
customers’ customers is a top- and bottom-line priority for many of our clients.
Cognizant Infrastructure Services (CIS) allows clients to address this priority by
helping them simplify technological complexity and operate more predictably
and progressively. The business unit leverages Cognizant’s industry experience
and expands traditional IT infrastructure management with expertise in business
availability, productivity, connectivity, cloud, and integrated value management
services, as well as enhanced service integration to address ongoing business and
market change.
CIS clients are global, and span multiple industries. Several newer clients,
including Loblaw (see page 20), are employing CIS – along with services provided
by other Cognizant business units, such as Cognizant Business Consulting and
Cognizant Business Process Services – in programs that deliver end-to-end
business-IT improvements, helping them optimize their investment with us.
With world-class technology, key partnerships and a broad global and local
delivery system, CIS helps ensure that clients adapt swiftly, learn collaboratively,
change with less friction, and rapidly capitalize on emerging business and
market opportunities.
13
COGNIZANT TECHNOLOGY LABS
FROM TECHNOLOGY
VISION TO BUSINESS
VALUE
As business becomes more digitally intensive, organizations must innovate quickly
and effectively to keep pace with competitors and remain relevant to customers.
Cognizant Technology Labs provides a go-to resource for clients seeking practical
and proven approaches to digital business transformation. Cognizant Technology
Labs – our research, technology consulting and incubation unit – is committed to
understanding emerging technologies and developing proofs of concept for their
deployment under real-world conditions. To help clients address their specific
business needs, Cognizant Technology Labs also develops solution accelerators
based on resulting technology breakthroughs.
Cognizant Technology Labs’ Technology Advisory Services facilitates business
transformation by helping clients plan and work through the complexities of their
enterprise IT architecture roadmap. Cognizant Technology Labs’ technology
incubation and co-innovation services assist our business units in establishing
centers of excellence within their own ecosystems, co-investing in resources to
develop new platforms and solutions, and helping their clients adopt emerging
technologies across industries. Cognizant Technology Labs also provides clients
with a catalog of solution assets and platforms that act as building blocks to
accelerate and deploy innovative solutions for specific business needs.
At the heart of Cognizant Technology Labs’ offerings is a world-class lab
infrastructure incorporating software engineering; user-centric design;
cognitive and hyperscale computing; connected ecosystems; data insights, and
IT infrastructure and security. Our R&D professionals work with clients’ chief
technology officers to nurture and evaluate new technologies and discover their
potential for reaping business advantage. From the tried and true (i.e., making
applications more robust and resilient) to exploring the art of the possible
(machine learning, green IT, unified communications and artificial intelligence),
Cognizant Technology Labs has emerged as a key differentiator for clients seeking
to lead in today’s new digital business age.
14
ADVANCING DIGITAL BUSINESS
COGNIZANT DIGITAL WORKS
A NEW PARADIGM
FOR VALUE IN A
DIGITAL WORLD
Cognizant Digital Works™ is our multi-disciplinary practice charged with helping
clients manage ongoing innovation as they become digital businesses. The
group integrates existing Cognizant competencies, including thought leadership
from the Cognizant Center for the Future of Work; the advanced technological
capabilities of Cognizant’s Emerging Business Accelerator ventures; the resources
and expertise of Cognizant’s vertical and horizontal business units, and strategysetting from Cognizant Business Consulting.
C-suite executives, primarily CIOs, but also CMOs and CTOs, need both strategic
consulting and access to functional expertise to quickly assess their needs,
catalyze solutions and establish business-critical digital capabilities. Cognizant
Digital Works is designed to help clients integrate their digital strategy with
industry-specific solutions and services.
Cognizant Digital Works encompasses a broad range of technology services and
solutions, as well as strategy, design and data science capabilities, to help clients
convert physical value chains into digital value chains that connect customers,
organizations, processes and devices. The practice also applies “design thinking”
to create enhanced and carefully curated user experiences that address industryand client-specific needs. Foundational technologies, including the SMAC Stack
(social, mobile, analytics and cloud), instrumentation of Internet of Things (IoT)
devices, as well as enterprise architecture and security, are also key capabilities
in the Digital Works equation. To help clients take advantage of emerging digital
business opportunities, the practice’s Collaboratory provides a space where they
can collaborate with Cognizant designers, strategists, technologists, and partners
to visualize, prototype and plan new digital initiatives.
15
CODE HALOS
DECODING BUSINESS
MEANING
The new era of digital business is accelerating due to multiple factors. The
continued maturation of social, mobile, analytics and cloud technologies is
creating new expectations for how we all engage with companies and each other.
Massive amounts of data are being produced by sensors embedded in products,
devices and machines. Companies, brands, people, products and machines are
now connected digitally in almost every time zone and in virtually every place.
We now live in a world where every noun – every consumer, product, device and
brand – is enveloped by what we call a Code Halo™ of data. This data is becoming
more valuable than the physical element it surrounds. At Cognizant, we have
been pioneers in identifying the existence of Code Halos and deciphering their
importance in digital business.
In 2014, our Center for the Future of Work literally “wrote the book” on the
subject, Code Halos: How the Digital Lives of People, Things and Organizations
are Changing the Rules of Business. The book reveals how organizations can
catalyze business with Code Halo thinking. A companion iPad app further
illuminates the Crossroads Model, a five-step path to success, and explores how
companies can make meaning and achieve market prosperity by embedding Code
Halo principles into strategic planning and execution.
We are extremely pleased with the positive reaction our book has received from
business and technology leaders. The Code Halo program has garnered multiple
honors for content and design, including a USA Best Book Award for top general
business book in 2014, two “Stevies” and a Hermes Creative Award, among others.
We’re proud of our role in helping business and technology decision makers
better understand that deriving business meaning from Code Halos is essential to
unlocking value in this new digital age.
Code Halo™ is a trademark of Cognizant Technology Solutions.
16
17
CLIENT SUCCESS
HEALTH NET
A MULTI-TOWER
ENGAGEMENT WITH
HOLISTIC BENEFITS
As clients push to become more nimble, efficient and innovative, they
increasingly need a partner that can bring together diverse capabilities to create
integrated and complete business-technology solutions. Cognizant is proficient
at creating and executing these “multi-tower” engagements, which may combine
the efforts of Cognizant Business Consulting, Cognizant Business Process
Services, Cognizant Infrastructure Services and other business units.
Such a multi-tower engagement was entered into in late 2014 with Health Net,
a managed care company that provides health benefits to approximately six
million individuals across the U.S. Under the agreement, Health Net, a longtime client, will work with Cognizant to strengthen its technology platform,
enhance the delivery of a high level of service to members and providers, enable
innovation in product and services development, and allow for more efficient use
of capital. The deal, which is subject to regulatory approval and initially valued at
approximately $2.8 billion over seven years, is the largest signed in our history.
The holistic solution is expected to provide Health Net with services in areas
such as claims management, membership and benefits configuration, the
customer contact center, information technology, quality assurance, appeals
and grievance support services, and non-clinical medical management functions.
Significantly, the agreement’s outcomes-based pricing model will provide
Health Net with specific, measurable results that will help reduce administrative
costs and add new business capabilities that support future growth. For example,
Cognizant is tasked with meeting targets for maintaining or improving the
quality, effectiveness and efficiency of many of Health Net’s operating metrics,
including claims processing and routing times, customer service response times,
and contact center satisfaction.
Under the agreement, Cognizant must meet all regulatory compliance
requirements, which will be overseen by Health Net’s dedicated governance
and oversight committee.
18
CLIENT SUCCESS
NISSAN NORTH AMERICA
UBS AG
MOBILE APP FOR
THE CONNECTED CAR
CROWD TESTING
A WINNING FINANCIAL
EDUCATION GAMING APP
UBS AG, a global financial services company
headquartered in Switzerland, provides investment
banking, asset management and wealth management
services to private, corporate and institutional clients
worldwide, as well as retail banking services to its
customers in Switzerland.
Nissan, the Japanese multinational automobile
As part of a financial awareness initiative to better
manufacturer, wanted to introduce a North American
inform and educate its clients, UBS devised a digital
mobile application for its premium brand, Infiniti, with
strategy involving interactive gaming apps that blend
functionality that would satisfy the high standards of the
financial information and entertainment. The company's
luxury consumer. The vision: give Infiniti owners a robust
award-winning edutainment gaming app, “Quiz and Fly,”
digital experience by enabling mobile access to Infiniti
challenges gamers to “fly” an aircraft from one city to
Connection to remotely control and monitor their cars,
another while answering questions about various topics.
have access to the Infiniti Owner Portal, and support
The skills-based action and knowledge quiz runs on a wide
subscriptions to Infiniti Connection trial products.
variety of smartphones and tablets. Gamers can collect
Infiniti partnered with Cognizant to provide its customers
with mobile access to a wide range of connected car
points based on miles traveled, while competing with
others and sharing their achievements via social media.
services, such as roadside assistance; stolen vehicle
Before introducing "Quiz and Fly" to its customers,
reporting; remote door lock/unlock; destination
UBS wanted to securely test the app across a variety of
assistance; speed alerts, valet alert, and Infiniti Personal
devices. Cognizant’s Crowd-on-Cloud offering was the
Assistant. Infiniti customers can now access these
perfect solution. A crowd of seasoned testers in different
through a jointly ideated, Cognizant-developed mobile
locations represented a 360° view of the intended
app that is compatible across multiple technology
audience.
platforms and devices, and can be easily configured to
support new versions of operating systems and mobile
Their job was to access the gaming app and report
devices as they emerge.
observations related to performance, functionality,
security, content and UI parameters. The Crowd-on-Cloud
The Cognizant team’s efforts set Infiniti on the road to
model helped UBS boost the app’s performance with a
many important benefits. The application suite enables
quick turnaround time, at minimal cost. Impressed with
more proactive and more frequent interactions with a
the speed and agility of this model, UBS IT management
broader spectrum of customers, along with the ability to
has recommended all future digital launches undergo a
serve them in real time, and delight them with connected
similar level of crowd scrutiny.
services. It also helps the company enhance brand
loyalty, increase customer retention, and expand its
customer base. Furthermore, Infiniti has an opportunity
to drive revenue by offering value-added services.
19
BRITISH GAS BUSINESS
LOBLAW COMPANIES LTD.
BRINGING NEW
ENERGY TO THE
CUSTOMER EXPERIENCE
ELASTIC DIGITAL
INFRASTRUCTURE
FUELS GROWTH &
PRODUCTIVITY GAINS
Loblaw Companies Limited is Canada’s food and pharmacy
leader and the nation’s largest retailer, with over one
billion transactions performed annually in the company’s
stores. Loblaw is also the majority unitholder of Choice
Properties Real Estate Investment Trust.
Loblaw’s goods and services include grocery and
pharmacy items, health and beauty aids, apparel, general
merchandise, banking, and wireless mobile products.
British Gas Business provides some 500,000 business
customers in the UK with a range of energy solutions,
from maintenance to renewable energy. It is part of
Centrica, Britain’s largest utility company. When British
Gas Business wanted to transform its business by
enhancing the digital experience it delivers to customers
and reduce costs, it partnered with Cognizant.
The goal: unravel complex legacy billing systems,
empower customers and business units to connect
online, and implement a new data warehousing platform,
among other initiatives. The collaborative project
between British Gas Business and Cognizant involved
a phased delivery of best-in-class SAP IS-Utilities and
SAP CRM software to support streamlined customer
processes. It required Cognizant to redesign critical
customer journeys in areas such as billing, customer
service and reporting.
The outcome has been transformational for British Gas
Business. The upgraded SAP platform is delivering a
richer customer experience, including smart mobile
apps for iOS and Android platforms, along with improved
billing accuracy, greater customer satisfaction and
lower operating costs.
With more than 2,300 corporate, franchised and
associate-owned locations, Loblaw employs approximately
192,000 full- and part-time employees, making it one of
Canada’s largest private-sector employers.
As part of a multi-year strategic IT partnership, Cognizant
is helping Loblaw transition to a digital, standards-based
IT environment encompassing Web, cloud and mobile
technologies, as well as anytime/anywhere computing
platforms for both customers and employees.
Cognizant’s end-to-end responsibility has allowed
Loblaw to achieve its objective of simplifying its
infrastructure, implementing progressive solutions and
running predictable operations that meet best-in-class
benchmarks. All while ensuring high availability of the
systems that are critical to Loblaw’s business processes,
with data flowing freely throughout its extended
enterprise – from retail sites to the corporate office.
Loblaw’s digital transformation has enabled the company to
evolve into a multi-format, omni-channel business. Moreover,
working with Cognizant, Loblaw has generated operational
efficiencies via “shift-left” and “deep automation” initiatives,
in addition to dramatically improving the resilience of its
core systems and reducing unplanned downtime. As a
result, Loblaw is more strongly positioned to deliver on its
corporate purpose: “Live Life Well.”
20
21
CORPORATE INFORMATION
EXECUTIVE OFFICERS
ANNUAL MEETING
John E. Klein (1) (2) (3)
Francisco D’Souza
Chairman of the Board
Cognizant
Chief Executive Officer
President
Chief Executive Officer
Polarex, Inc.
Gordon J. Coburn
The Company’s annual meeting of
stockholders will be held at 9:30 am
on Tuesday, June 2, 2015 at the
Company’s headquarters:
DIRECTORS
President
Malcolm Frank
Lakshmi Narayanan
Executive Vice President,
Strategy and Marketing
Vice Chairman
Cognizant
Maureen Breakiron-Evans (2) (3)
Former Chief Financial Officer
Towers Perrin
Francisco D’Souza
Rajeev Mehta
Steven Schwartz
Executive Vice President
Chief Legal and Corporate
Affairs Officer
John N. Fox, Jr. (1) (3)
Former Vice Chairman
Deloitte & Touche LLP
Chandra Sekaran
Leo S. Mackay, Jr. (2)
Vice President
Lockheed Martin Corporation
Michael Patsalos-Fox (1) (3)
Chief Executive Officer
Stroz Friedberg
(1) (3)
Chairman
Shelburne Partners
Thomas M. Wendel (2) (3)
Former Chief Executive Officer
Bridge Information Systems
BOARD COMMITTEES
Compensation
2
Audit
3
Nominating and Corporate
Governance
1
Chief Financial Officer
Chief Executive Officer
IT Services
Chief Executive Officer
Cognizant
Robert E. Weissman
Karen McLoughlin
Executive Vice Chairman
Cognizant India
Glenpointe Centre West
500 Frank W. Burr Blvd.
Teaneck, NJ 07666
LEGAL COUNSEL
Latham & Watkins LLP
885 Third Avenue
New York, NY 10022-4834
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP
300 Madison Avenue
New York, NY 10017
TRANSFER AGENT
EXECUTIVE OFFICES
American Stock Transfer &
Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219
Glenpointe Centre West
INTERNET
Sridhar Thiruvengadam Chief Operating Officer
500 Frank W. Burr Blvd.
Teaneck, NJ 07666
Phone: 201.801.0233
FORM 10-K
A copy of the Company’s Form
10-K is available without charge
upon request by contacting
Investor Relations at the
address or phone number listed.
COMMON STOCK INFORMATION
The Company’s Class A common
stock (CTSH) is listed on the
NASDAQ Global Select Market.
Additional company information is
available on the World Wide Web:
www.cognizant.com
INVESTOR RELATIONS
Requests for financial information
should be sent to:
David Nelson
Cognizant Technology Solutions
Glenpointe Centre West
500 Frank W. Burr Blvd.
Teaneck, NJ 07666
Phone: 201.801.0233
This Annual Report contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding the
Company’s expectations for growth in 2015. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future
conditions. Although we believe that the expectations reflected in the forward-looking statements contained in this Annual Report are reasonable, we cannot guarantee future results.
These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially
different from those expressed or implied by the forward-looking statements. For further information about the important factors that could cause actual results to differ materially
from those in the forward-looking statements, please see the section entitled “Risk Factors” in Item 1A of Part I of our Annual Report on Form 10-K, which is included in this Annual
Report. You should evaluate all forward-looking statements made in this Annual Report in the context of these risks and uncertainties.
22
World Headquarters
500 Frank W. Burr Blvd.
Teaneck, NJ 07666 USA
Phone: +1 201 801 0233
Toll Free: +1 888 937 3277
www.cognizant.com