Cognizant Technology Solutions, a prominent software services firm, plans a substantial investment of approximately $183 million (₹15.82 billion) to establish a new campus in Visakhapatanam, a key city in southern India. This development, confirmed by the state government on Friday, is anticipated to create roughly 8,000 employment opportunities. Operations at the new facility are slated to begin in March 2029, according to an Andhra Pradesh government press release. Cognizant has not yet issued an immediate response for comment on this announcement.
This strategic move by Cognizant comes just months after India’s leading IT giant, Tata Consultancy Services (TCS), unveiled its own plans for a ₹13.70 billion campus in the same city, expected to generate 12,000 jobs, signaling a growing IT hub in Visakhapatanam.
The decision to invest in a new campus in a tier-2 city like Visakhapatanam aligns with Cognizant’s broader strategy to optimize its real estate footprint. As stated by CEO Ravi Kumar S in May 2023, the company intends to reduce its global office space by 11 million square feet, primarily in India’s major metropolitan areas, while simultaneously directing investments towards emerging Indian cities.
Across the global IT sector, including India’s formidable $283 billion industry, companies are increasingly implementing cost-saving measures. These include liquidating real estate assets and deferring wage adjustments, a trend largely driven by prevailing uncertainties in market demand.
In a recent positive financial update, the Teaneck, New Jersey-based company revised its annual revenue forecast upwards, reporting stronger-than-expected first-quarter results. This improved performance is largely attributed to a surge in demand for IT services powered by artificial intelligence. Cognizant now projects its annual revenue for 2025 to be in the range of $20.5 billion to $21.0 billion, a notable increase from its earlier midpoint outlook of $20.30 billion to $20.80 billion.
