Cognizant to expand Chennai operations

Cognizant Technology Solutions will scale up its infrastructure in Chennai and set up its first tier two city development facility in Coimbatore, as part of its $76 million expansion.

The expansion is line with Cognizant's target of a 44 per cent increase in revenue for 2005 to $845 million against $586.7 million achieved in 2004.

"We see a strong demand with outsourcing programme reaching the mainstream and inhibitors going away," said Lakshmi Narayanan, president and CEO. He referred to the US elections and its positive outcome, with large corporations outsourcing their IT needs.

Cognizant will construct a complex in Siruseri ( near Chennai), which would be ready for occupancy in phases, starting December 2005. The first phase would have 2,00,000 sq ft of built-up space and accommodate approximately 2,000 professionals.

It will also build a 1,50,000 sq ft software development block on a six acre area adjacent to its existing complex in Thorapakkam. This facility can accommodate approximately 1,500 personnel and will be completed in December, 2005. Cognizant will invest $25.4 million for the Chennai expansion plan.

Cognizant has plans to lease 40,000 sq ft space to accommodate about 400 professionals in the first year of operations. The facility is expected to be ready in 12 to 18 months.

"We are quite confident that Coimbatore will be a successful location for us," added Narayanan.

The centre will service its global requirements and focus on application maintenance, testing services and IT infrastructure management services.

Cognizant has committed to add 7,200 professionals to take its global headcount to 22,500 by 2005 end. Of the 16,000 professionals that the company hires globally, 12,000 are housed in India, of which 7,300 are in Chennai, 1,600 in Kolkata, 1,400 in Pune, 1,000 in Bangalore and 700 in Hyderabad.