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96 Comments
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  39. cognizant wellwisher says

    We all know the story of Cognizant. An amazing trail blazer of a company having industry leading growth from inception in 1994 till 2017. What went wrong from 2017
    1. Things started going when there was whistleblowing for a miniscule amount of USD 5 m as facilitation charges paid by Cognizant to L&T for expediting the approvals for Siruseri office.
    2. Cases were filed on Gordon the then charismatic CFO, the company was given clearance by SEC in 2020; but the case on Gordon continues
    3. We had Elliot an activist investor which squeezed the company’s ability to make investments in 2017/2018 and ultimately exited with 50% return
    4. Frank, the then CEO who had grown the firm from USD 3 BN when he took over to USD 14 BN in 2017; started having personal challenges with his wife falling ill and he himself having health challenges. Raj mehta, the then president and COO was being groomed to be CEO and the man himself was strutting as one till 2017 end.
    5. The success of Cognizant was based on Frank, who was a visionary, Raj who used to hire and groom the best folks, Gordon, the fin whizkid and Chandra who executed delivery
    6. When Raj was denied the CEO position and in 2018, the company started search for a new CEO.
    7. Raj was furious and the then key internal folks scuttled 3 big deals which Cognizant had won; the Verizon deal (1 BN USD plus); ABN Amro (1.5 BN USDplus) and Microsoft (USD 500 M) and interestingly it was around the same time Salil had taken over Infy and Nandan was also back, they lapped up the deals refused to close despite being shortlisted. The key execs at Cognizant wanted to set up the new CEO supposed to join in 2019 Jan/Feb for failure because there was no way he could have filled the above gap
    8. Brian Humphries joined early 2019 and was set up perfectly for failure. Cognizant grew in 2019 around 4% instead of the 10% had it signed the above deals.
    9. Brian was given the mandate that things had to be fixed at Cognizant. Given Brian’s background of handling only desktops and towers and his lack of having grown any biz, and his only claim was to cut costs, it was a terrible hire
    10. He behaved very rudely with every top executive and the list is long. Every executive left and joined other firms at CXO levels and started delivering multiple cuts to cognizant by poaching talent at all levels. The list of folks who left is very long
    a. Gajen Kandiah – Head of Digital – now CEO of Hitachi Vantara
    b. Roger Lvin – Head of Markets Digital Biz Ops– now President at Hitachi Vantara
    c. Sumithra Gomathan – President Digital biz ops – Chairwoman at Omega; Goldman Sachs tech ventures in india
    d. Nirav Patel – Head of CMT Markets – now CEO at Bristlecone
    e. Kaushik Bhaumik – Head of Healthcare – now CEO Glide Health
    f. Venkat Krishnaswamy – Head of Healthcare and Lifesciences – Chairman – Firstsource – Healthcare
    g. Karthik Krishnamurthy – Head of Analytics – now CEO of Collabera
    h. Suresh Bethvandu – Global Hiring head – now Chief People Officer – LTI Mind tree
    i. Nachiket Deshpande – Head of BFS – now COO for LTI Mind tree
    j. Debashish Chatterjee – Global Head of Delivery – now CEO for LTI Mind tree
    k. Aan Chauhan – CTO for BFS – now CTO for LTI Mindtree
    l. Arun Baid – Head of BFSI Delivery, now Sr Partner at Mckenzie
    m. Sabyasachi das – Head of NA BFS Delivery – CEO L&T Edutech
    n. Pradeep – DB&T Tech Delivery head – now CEO at iMed Solutions
    o. Chintamaneni Prasad – President of Americas now MD at New Mountain Capital
    p. Many other SVPs at Delivery – Jaideep Poondir – Head of CMT delivery; Vinayambika Kidangoor – Head of Healthcare Delivery; Sairam Jayakumar – Head of Lifesciences delivery; Rajagopal Balaji – Head of EAS, Ramkumar Ramamoorthy CMD India – all took early retirement
    q. Anbu Ganapathi – Head of QEA ; now CEO at Qualitest Group
    r. Ajay Bhutoria – Head of Retail, now CEO at Zensar
    s. Rajaram Radhakrishnan – Head of MLEU; now Chief Revenue officer at Globe Logic
    t. Matt Friedrich- Head of Legal & Compliance, now Head of legal and Compliance at United Healthcare
    And the list goes on and on
    11. Mr Humphries for so badly behaved that the only two surviving SVPs in india from 5-6 years back
    12. Lets look at Humphries hires ?
    a. Cognizant EVP of healthcare – Jeff heenan Jalil fired in Dec 2019 because of compliance issues
    b. Cognizant Americas President – Grey Hyttenrauch fired in Jun 2022 because of behavioural issues
    c. Ursula Morgenstern – President Global Growth markets hired in 2020, fired in Apr 2022
    d. Four hires who had retired
    a. Ganesh Ayyar – coming back from retirement from Mphasis
    b. Andy Stafford – Great Delivery guy, but came over with a 3 year view in June 2020.
    e. Hires One of the most obnoxious chief people officer who literally hates interacting with people Becky Schmitt
    f. Rajesh Nambiar – CMD india who hardly meets people ; in fact Andy Stafford and Greg met more people than Rajesh sitting in india
    13. The company’s HR policies have been so disastrous led by Becky Schmitt and Shantanu Jha in india and while attrition is not only an HR problem, it’s a joint issue which HR and Delivery have to partner to address; their flip flop policies and the way their obnoxious high handed behaviour in which Becky and Shantanu behave ensured that the company has had the highest attrition in the industry. Shantanu comes from IBM where his claim to fame was to cut costs and people, which is what he continues to do. Problem is they have cut off SMEs’; solution architects, technologists, cut off in the wrong areas
    14. Brian needs to go and along with him the Chairman and Becky the CPO here is why
    a. He has spent USD 3 BN on acquisition. The Intangible assets which is good will at 36% is the highest in the industry. There is no growth to show for these acquisitions, in fact I would demand an audit of the same, you will have to write off most of these. Bolder acquisition which Surya Gummadi the current president was running is in doldrums (the write off on goodwill would amount to hundreds of millions in just this case).
    b. Brian and becky ruthlessly let go off lots of people during COVID when people needed their jobs most and they have got the fruits of the same in 2021 and 2022. They just have lost people’s trust. Shantanu who is the main culprit in india instead of being sacked has been promoted to Chief Transformation officer
    c. Adhoc people decisions..when Greg was fired, he promoted Surya who used to manage just a BU of 400 MN till end 2019 and took over healthcare in 2020, hid the losses in Bolder and in early 2022 was given Life sciences. The numbers are pretty average but since he executes without questioning, he was given the top job as Americas President. There is no more amateurish and self serving individual than him
    d. The whole operating model which Brian bought about in 2020 was complete anti clients. Cognizant’s strength was industry focus. The delivery was aligned by industry, but he changed it to service line focus and internal focus. The company moved away from being a client focused organisation to an internal focused organisation
    e. He has now created an Integrated Service Line structure and created more complexity more Presidents and more bureaucracy.
    f. There has been significant depletion of Project managers and Solution Architects
    g. Application Maintenance and development which used to be the core strength at Cognizant, there has been annualized attrition of 40% for the last two years, thereby significantly eroding the knowledge base of applications, resulting in lesser wins on the application modernization side and thereby migrating to the cloud also
    h. The CFO office so messed up on the forecast side, they have no handle on their business
    i. The GGM part of the business has just tanked with very confused country structure and lack of leadership
    j. The overall result is poorest growth amongst peers , highest attrition amongst peers and the stock price has been a train to nowhere compared to competition
    k. The only claim to fame Brian had is managing the investors, which he has spectacularly failed at
    l. No big deals. Inability to close any big deals in the last 3 years is appalling.
    m. Incompetent service line delivery leaders and hiring lead who are just unable to fulfil
    n. The delivery head sits in London instead of India and has delegate everything to the incompetent Shantanu Jha
    o. The digital head who is supposed to be market facing was based in India instead of US. Very strange way of organising things
    p. The company is so bureaucratic that even the smallest things have to be approved by CFO and CPO…making one wonder who is controlling the company
    q. Why are all the competition growing and Cognizant not growing..such a mess

    Is the Board sleeping? Or is it the Chairman..Rumor has it that the board has just woken up and started search for Brian’s replacement..dunno if it is true…

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  63. Apoorva says

    Can you update the Startup Investment Chart. It remains non-updated since a fortnight now.

    1. Arun Prabhudesai says

      It has been updated yesterday.. We got a little delayed this time..

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  66. Pallav says

    Hey Arun,

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    I am co-founder of Kruzr and we are building mobile technology to solve the problem of road safety. We have developed Kruzr, your safe driving companion, which handles all communication for you while you drive. It would be great to connect with Trak to spread our message of Road Safety.

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  68. Varun Jadhav says

    I have been following trak.in for quite some time now as and when possible. It’s great to read about things here which are detailed, basically I loved the series on DIGITAL INDIA Campaign and the analysis of how it would impact the markets. SwachhCar is a Doorstep Car Care service in Pune Launched 6 Months ago and we have had a greater insight of our market sector because of you guys. Great going, keep up the great work. All the best for a new year from me and my team at http://swachhcar.in

  69. prashant says

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  70. Jagadish says

    Hi sir Iam Jagadish at first I was so proud to shop in Flipkart but now Iam sorry to say about the service that the Flipkart guys are providing .Bcoz here I got the mail about my refund request but it was mentioned that the pickup guy will take the product but that guy denaid taking the product so then nw I called to the care they said me that saying your request is cancelled so this had happend for me twice so please give the priority to the customer problems and solve it and my Order ID-od40903087612

  71. Sandesh says

    I have sent my company startup story to trak.in via email. Got a conformation message last week but can i know when this article will publish in your website.
    [email protected]

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  73. Yatharth Singh says

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  76. Sohil Memon says

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  77. manish says

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  78. Sadek says

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  79. liz says

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    1. Arun Prabhudesai says

      Yes, you can… you will have to attribute it to trak.in…thats all.. We are currently not charging anything

  80. Marat says

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  93. Ashvini says

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    I would like to contribute to this site.
    Please checkout my blog at http://behaviourobservation.blogspot.com

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