Strategic drivers of Cognizant's growth: Analysis and evaluation

Abstract

Indian IT industry has been one of the top contributors to the Indian economy over the past few years.IT software and services sector, excluding hardware, is estimated to account for $76.1 billion in FY2011-12. Globally, BPO is growing at the rate of 4% per annum while IT is growing at the rate of1.4% per annum (Appendix 2). With large revenue share, this sector constitutes 6.1% of GDP for thenation.IT sector has always been export oriented mainly due to the demand from developed economies likeUS. Demand has been consistent across traditional sectors like BFSI (banking and financial services)but there has been strong emergence of new sectors like retail, healthcare and media in recent past.India has continued to be the favourite destination for outsourcing with 55% share of globaloutsourcing in IT sector. There have been transformations in the IT sector such as vertical solutioningwhere numbers of organizations have restructured themselves around verticals. There has beencontinuous process innovation and reengineering which has resulted in more mature service deliverymodel. Industry is focusing on sustainable practices including diversity, green culture and corporatesocial responsibility.