Cognizant expands operations in India to tap into talent pool

Strategic Push into India's Growing Talent Hubs

Cognizant, a prominent player in the global technology services industry, is intensifying its footprint in India by venturing deeper into tier-2 cities and bolstering presence in established tech hubs.

This move comes as the company seeks to tap into the abundant skilled workforce available in regions beyond the usual metropolitan areas. Leaders at Cognizant have highlighted how this expansion aligns perfectly with client demands for localized expertise in cutting-edge technologies like artificial intelligence.

During discussions at a major international forum, Surya Gummadi, President of the Americas business at Cognizant, underscored the importance of this strategy.

India has always been an integral part of the Cognizant strategy, and now it is an integral part of Cognizant's AI strategy as well. We are expanding in Chennai, we are expanding in Hyderabad, we are expanding in Bengaluru and Pune as well, noting that the expansion depends on the client's needs.

The company has already set up operations in promising locations such as Visakhapatnam, Indore, and Gujarat's Gift City, with plans to scale further.

These areas offer a fresh pool of graduates and professionals eager to contribute to global projects. Cognizant's approach involves not just hiring but also building infrastructure to support long-term growth.

This expansion is part of a broader effort to assist clients in establishing and enhancing Global Capability Centers, or GCCs, which have become vital for multinational firms looking to innovate from India.

By focusing on tier-2 cities, Cognizant aims to distribute its workforce more evenly, reduce dependency on overcrowded major cities, and foster economic development in emerging regions.

AI at the Core of Cognizant's India Expansion

Artificial intelligence is the driving force behind much of this operational growth.

The majority of Cognizant's associates working on AI solutions for clients are stationed in India, complemented by teams in the US and client locations worldwide.

Production centers in the country further solidify its role as a powerhouse for AI development and deployment.

Gummadi pointed out the readiness of India's educational system, which is swiftly adapting to AI demands, producing graduates who require minimal additional training.

We continue to recruit a lot of fresh graduates from Indian colleges, along with hiring in the US. We are seeing that shift in the educational system towards AI, and we are getting partially ready talent.

This talent influx enables Cognizant to deliver faster, more efficient services to its international clientele.

Cognizant's history with GCCs adds depth to its current endeavors.

The company itself originated as a GCC for Dun & Bradstreet, giving it unparalleled experience in setting up and optimizing these centers.

Today, it offers end-to-end support, from recruitment and training to infrastructure and operational enhancements.

Clients benefit from tailored solutions that leverage India's cost-effective yet high-quality talent.

As AI transforms industries, Cognizant's investments position it to lead in agentic AI platforms and outcome-based pricing models, further cementing India's centrality in its global playbook.

Broader Implications for India's Tech Ecosystem

This expansion signals confidence in India's evolving role as a global operations and technology hub.

With data centers and AI initiatives on the rise, the country is attracting more investments from tech giants.

Cognizant's CEO has echoed this sentiment, emphasizing strategic acquisitions and platform-led growth to fuel expansion in underrepresented markets like Europe and Asia-Pacific.

Discussions with Indian regulators for potential listings also hint at tapping domestic investor interest in tech services.

There is a pool of investors in India who are very keen to invest in tech services. IT services is a proxy for AI, and there is significant mutual fund and retail participation. If we can attract a new category of shareholders, that creates value.

Such moves could unlock new capital while showcasing India's maturity as a tech destination.

For local communities, the benefits are tangible: new jobs, skill-building programs, and infrastructure upgrades that spur regional growth.

Tier-2 cities stand to gain the most, as they transition from peripheral players to key nodes in the global tech network.

Cognizant's commitment extends to upskilling initiatives, ensuring a steady supply of AI-proficient workers.

Overall, this positions India not just as a back-office hub but as a frontrunner in AI innovation and services delivery.

In summary, Cognizant's expansion in India underscores the nation's strategic importance in the AI era, blending talent access, client-centric growth, and technological leadership to drive mutual prosperity.