Rank - 14 : Reinforcing Vertical Play

For an IT services firm that is completely verticalized in its approach, it
was natural that the foray to BPO followed a similar approach. So, it is not
surprising that Cognizant has ventured into the same verticals with BPO
offerings that it is strong in providing IT services. That means Cognizant did
not debate much on whether to get into voice or non-voice, commiditized or
non-commoditized services. As long as it was fitting nicely into its vertical
approach, it was fine for the company. That means getting into as crowded areas
as insurance claims processingwhich almost all BPO providers have addressedto
as niche areas as clinical data management for pharma companies.

This verticalized approach also means that Cognizant does not have a separate
division for BPO, even though it started way back in 2004.

In some areas like healthcare and insurance, it has leveraged its existing
relationships quite well. In clinical data management, in which it is one of the
top three vendors (others are TCS and Accenture), its client list includes
Pfizer, AstraZeneca and Sanofi-Pasteur. It signed the Sanofi deal last year
which selected Cognizant as its global partner for clinical trials data
management. Cognizant executed over thirty large clinical studies in partnership
with Sanofi-Pasteur, helping the company meet the aggressive H1N1 deadlines on
five critical studies. Interestingly, the pricing model at Sanofi-Pasteur is
transaction and outcome based.

Last year also saw the company acquiring the UBS India service center based
in Hyderabad. The acquisition has brought in a commitment of at least $442 mn
revenue over five years. At the time of the acquisitions, UBS ISC offered
approximately 75% of revenues from BPO/KPO.

It also added claims processing capabilities in its Phoenix center and opened
a center in Manila. Last year also saw Cognizant expanding its BPO business by
hiring Ramesh Gudalura BPO industry veteran who earlier worked with Cognizant
before heading Mphasis BPOas VP and Practice Leader for Customer Relationship.
while Vipul Khanna took over as VP and Practice Leader responsible for Delivery
Excellence.