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Cognizant Technology Solutions Corporation (SWOT Analysis) - September 2013

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Cognizant Technology Solutions Corporation

Cognizant Technology Solutions Corporation (CTS or "the company") is a leading provider of information technology (IT), consulting, IT infrastructure and business process outsourcing (BPO) services. The company operates in North America and Europe. CTS is headquartered in Teaneck, New Jersey and employed approximately 156,700 in 2012.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor






  • Vertical focus enabled to build strong capabilities in BFSI and healthcare domains
  • Strong consulting business
  • Strong growth in revenues supported by a stable stream


  • Dependence on North America and Europe



  • Strategic acquisitions and investments
  • Emerging opportunities in cloud and enterprise mobility
  • Big Data opportunity


  • New immigration bill could impact revenues and profitability
  • Rising wage inflation in India leading to margin pressure
  • Intense competition
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