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Cognizant - Quarterly Update

Cognizant - Quarterly Update

Who Is This Quarterly Update For?
NelsonHall's Quarterly Update on Cognizant provides a snapshot of developments at the comapny in the last quarter. It accompanies NelsonHall's more comprehensive Key Vendor Assessment program.

Both programs are designed for:
- Marketing, sales and business managers developing strategies to target service opportunities within the BPO/IT Services markets
- Sourcing managerss monitoring the capabilities of existing of exisitng suppliers of IT and BPO services and identfying vendor suitability for these services
- Consultants advising clients on vendors selection
- Vendor marekting, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the BPO/IT services sector.

Highlights
Q3 2018 performance: revenues at midpoint of guidance; retial strong, ongoing softness in large banks in Europe and APAC
Claims digital revenue grew in the low 20% range and is now>30% of revenue, with the strongest quarter in digital for the retail sector for 'many years.'
BFSI revenues growth continues to be slow
Healthcare sector revenues were boosted by first-time contributions form two acquisitions.
Non-GAAP operating margin benefits from transition to ASC 606 and from Rupee depreciation. Management lighlights there was also significant margin expansion form operational leverage
Attriton remains an issue
Cuts tow end of full year guidance by $170m
Two Salesforce specialists acquired in Q3
SaaSfocus, brings in 350 personnel and expands presence in Australia, particularly in BFSI, manufacturing and automotive sector
ATG: expands capabilities in U.S. around Quote to Cash solutions
Acquisition of Softvision in Q4 will addd scale and expertise in agile development and a a neareshore delivery capability in Romania
THese acquisitons should all be margin accretive as well as boosting revenues from digital.
New chair of board; new CEO in 2019?

Scope of the Report
The report provides a quarterly update on Cognizant, looking at financial performance and key developments during the period.
IT accompanies NelsonHall's Key Vendor Assessment program which looks at Cognizant's IT and BPO offerings, capabilities, and market and financial strengths, including:
- Identification of the company's stratemphases and new developments
- Revenue breakdowns
- Analysis of the company's offerings and key service components
- Analysis of the profile of the company's client base including the company's targeting strategy and examples of current contracts
- Analysis of the company's strengths, weaknesses and outlook.


Overview
Financials
Recent Contract Awards
M&A and Investments
New Partnerships
Immediate Challenges
Appendix A: Financials
Appendix B: Number of Strategic Accounts
Appendix C: Employee Data

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