Latest News From Cognizant
company Website : cognizant.com
latest news from cognizant as a strategic move to optimize its real estate portfolio, global software services giant Cognizant has engaged real estate management firm JLL to facilitate the sale of leasehold land associated with its largest facility in Chennai. The facility, located in Siruseri, spans over 49 acres and houses 16,500 seats across two campuses.
This decision follows Cognizant’s announcement in May of a comprehensive restructuring plan aimed at achieving $400 million in cost savings over two years. As part of this plan, the company is divesting approximately 11 million square feet of office space, equivalent to around 80,000 seats. The move is designed to streamline operations, generate structural savings, and create opportunities for future investments in talent development and growth initiatives.
Cognizant, headquartered in Teaneck, New Jersey, currently holds a long-term lease on the land owned by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT). The company plans to divest this leasehold land, signaling a shift towards more decentralized talent models and a focus on Tier 2 cities. The decision aligns with industry trends where IT firms are opting for smaller campuses in cost-effective locations, capitalizing on the preferences of their talent for lower living costs and operational expenses.
The sale of the Siruseri facility is part of a broader trend within the IT industry, with companies adapting to the evolving dynamics of remote work and a workforce that is increasingly dispersed across various geographical locations. Peter Bendor-Samuel, CEO at research firm Everest Group, commended Cognizant’s strategic move, emphasizing the importance of maintaining service quality irrespective of employee location.
As the company progresses with its workspace rationalization plan, industry observers anticipate increased interest in the real estate market for large-scale facilities, reflecting the dynamic shifts in corporate strategies and workforce preferences. JLL and SIPCOT have yet to provide comments on the matter.
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