samsam

Cognizant Technology: On a Tear and Still Undervalued

Challenges for Cognizant

VISA Rejection rates
Visa applications for new L1 visas and visa extensions are getting rejected like crazy which is forcing CTSH to hire onshore. The slave visa (L1), the mainstay of CTSH is getting hit big time. If the visa situation especially a crackdown on L1 can create long term challenges for CTSH.

2. Meritocracy vs Mama(uncle)cracy
Political positioning and nepotism has reached all time high, with command lines drawn all the way to line managers and below. To be successful in CTSH you need to KNOW the right people. Desi Management has surrounded themselves with YESmen stifling the growth of real performers. This is impacting morale at the middle level management.

3. Leadership split along racial lines
Desi management is fighting the arrival of fresh blood from the local markets in Europe and US. Typical approach is subtle non cooperation with the new entrants to the point that they leave due to frustration. Frank’s idea of infusing the top leadership and relationship management roles with a local flavor (aka whitewash) is facing huge resistance from the desi oldies. Several high profile folks who were hired from the local market, with atleast some amount of self respect have already left. The locals who hang on are the ones who find no other option in this tough market.

4. New revenue streams: Truth about Consulting revenue
CTSH cannot afford to grow but increasing head count alone, which is the typical body shopping route... Unfortunately the consulting practice which was established to provide high margins and downstream revenue is not taking off. What is happening is "creative accounting". Income from Business Analysts is now accounted for as consulting revenue. Consulting groups continue to report to Practice heads who generally have no clue about the state of the industry verticals they “lead”. A favorite of the former CEO who was leading Consulting group was replaced recently with someone with real experience.
CTSH is unable to create a critical mass of REAL consultants who can make an impact.

5. Profitability issues
Falling dollar and rising rupee has a double whammy effect as the cost of resources goes up in India. Moreover clients who are facing tough times are demanding pricing discounts which are unlikely to be reverted once the economic situation improves.

6.Competition for talent in India
IBM, Accenture, CSC, EDS and other MNCs are hiring like crazy in India weaning away talent from CTSH and other offshore providers.

Cognizant Technology: On a Tear and Still Undervalued

samsam: Comments (3) Follow1. VISA Rejection rates
Visa applications for new L1 visas and visa extensions are getting rejected like crazy which is forcing CTSH to hire onshore. The slave visa (L1), the mainstay of CTSH is getting hit big time. If the visa situation especially a crackdown on L1 can create long term challenges for CTSH.

2. Meritocracy vs Mama(uncle)cracy
Political positioning and nepotism has reached all time high, with command lines drawn all the way to line managers and below. To be successful in CTSH you need to KNOW the right people. Desi Management has surrounded themselves with YESmen stifling the growth of real performers. This is impacting morale at the middle level management.

3. Leadership split along racial lines
Desi management is fighting the arrival of fresh blood from the local markets in Europe and US. Typical approach is subtle non cooperation with the new entrants to the point that they leave due to frustration. Frank’s idea of infusing the top leadership and relationship management roles with a local flavor (aka whitewash) is facing huge resistance from the desi oldies. Several high profile folks who were hired from the local market, with atleast some amount of self respect have already left. The locals who hang on are the ones who find no other option in this tough market.

4. New revenue streams: Truth about Consulting revenue
CTSH cannot afford to grow but increasing head count alone, which is the typical body shopping route... Unfortunately the consulting practice which was established to provide high margins and downstream revenue is not taking off. What is happening is "creative accounting". Income from Business Analysts is now accounted for as consulting revenue. Consulting groups continue to report to Practice heads who generally have no clue about the state of the industry verticals they “lead”. A favorite of the former CEO who was leading Consulting group was replaced recently with someone with real experience.
CTSH is unable to create a critical mass of REAL consultants who can make an impact.

5. Profitability issues
Falling dollar and rising rupee has a double whammy effect as the cost of resources goes up in India. Moreover clients who are facing tough times are demanding pricing discounts which are unlikely to be reverted once the economic situation improves.

6.Competition for talent in India
IBM, Accenture, CSC, EDS and other MNCs are hiring like crazy in India weaning away talent from CTSH and other offshore providers.

Market Cognizant of Cognizant - At Last

1. VISA Rejection rates
Visa applications for new L1 visas and visa extensions are getting rejected like crazy which is forcing CTSH to hire onshore. The slave visa (L1), the mainstay of CTSH is getting hit big time. If the visa situation especially a crackdown on L1 can create long term challenges for CTSH.

2. Meritocracy vs Mama(uncle)cracy
Political positioning and nepotism has reached all time high, with command lines drawn all the way to line managers and below. To be successful in CTSH you need to KNOW the right people. Desi Management has surrounded themselves with YESmen stifling the growth of real performers. This is impacting morale at the middle level management.

3. Leadership split along racial lines
Desi management is fighting the arrival of fresh blood from the local markets in Europe and US. Typical approach is subtle non cooperation with the new entrants to the point that they leave due to frustration. Frank’s idea of infusing the top leadership and relationship management roles with a local flavor (aka whitewash) is facing huge resistance from the desi oldies. Several high profile folks who were hired from the local market, with atleast some amount of self respect have already left. The locals who hang on are the ones who find no other option in this tough market.

4. New revenue streams: Truth about Consulting revenue
CTSH cannot afford to grow but increasing head count alone, which is the typical body shopping route... Unfortunately the consulting practice which was established to provide high margins and downstream revenue is not taking off. What is happening is "creative accounting". Income from Business Analysts is now accounted for as consulting revenue. Consulting groups continue to report to Practice heads who generally have no clue about the state of the industry verticals they “lead”. A favorite of the former CEO who was leading Consulting group was replaced recently with someone with real experience.
CTSH is unable to create a critical mass of REAL consultants who can make an impact.

5. Profitability issues
Falling dollar and rising rupee has a double whammy effect as the cost of resources goes up in India. Moreover clients who are facing tough times are demanding pricing discounts which are unlikely to be reverted once the economic situation improves.

6.Competition for talent in India
IBM, Accenture, CSC, EDS and other MNCs are hiring like crazy in India weaning away talent from CTSH and other offshore providers.

Market Cognizant of Cognizant - At Last

Here are some of the major challenges for Cognizant


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