Cognizant at JPMorgan Conference: Strategic Wins and AI Focus

On Thursday, 15 May 2025, Cognizant Technology Solutions (NASDAQ:CTSH) presented at the 53rd Annual JPMorgan Global Technology, Media and Communications Conference. The company discussed its strategic initiatives, highlighting significant deal wins and the integration of AI, while also addressing challenges like discretionary spending and margin impacts.

Key Takeaways

• Cognizant signed multiple large deals, including a mega deal, signifying a return to the "winner’s circle."
• The company is focusing on AI integration across its operations to drive productivity and innovation.
• Cognizant’s BFSI segment has shown a positive turnaround, with growth moving from -6% to +6%.
• The company is balancing margin expansion with strategic investments, including M&A activities.
• Workforce retraining and customer satisfaction remain key priorities for sustaining growth.

Financial Results

• Cognizant reported a robust quarter, securing four large deals, including a mega deal.
• In 2023, the company won 17 large deals, with an increase to 24 deals in 2024.
• Discretionary spending has been stable in the BFSI sector, which is now experiencing a 6% growth.
• The Belkin acquisition impacted margins by 50 basis points, but M&A remains a strategic focus.

Operational Updates

• Cognizant is committed to a virtuous cycle of winning and executing large deals to secure future opportunities.
• The company is integrating AI to enhance productivity and develop multi-agentic systems.
• Digital Engineering has emerged as a fast-growing service line, reflecting strength in discretionary work.
• Workforce management includes training over 230,000 employees in AI techniques to meet new technological demands.

Future Outlook

• Cognizant aims for moderate margin expansion while continuing to invest in growth and AI capabilities.
• M&A will be pursued to fill gaps in market presence, despite potential margin impacts.
• The company emphasizes customer and employee satisfaction as pillars for future success.

Q&A Highlights

• Cognizant’s BFSI segment is poised for discretionary spending recovery, supported by structured demand fulfillment.
• Digital Engineering, a $2 billion business, is outpacing market growth, driven by AI-led productivity solutions.
• The company’s expertise in applications and operations positions it well for agentification projects.

For further details, please refer to the full transcript below.

Full transcript - 53rd Annual JPMorgan Global Technology, Media and Communications Conference:

Tien Tsin Huang, Follow IT services sector, JP Morgan: ready to go. Day three of the TMC conference is a happy day for me when it’s a day three because it’s the last day. But always grateful to have all these great companies and executives come, of course.

My name is Tien Tsin Huang, follow the IT services sector at JP Morgan. Of course, we’ve got Cognizant with us, so it’s great to have the Cognizant team join us. We’ll do a fireside chat with us from Cognizant. Jatin Dalal, CFO, as well as Tyler Scott, who does an amazing job in Investor Relations. And I’ll kick off with these questions.

Happy to take questions from the audience, also from the portal, so feel free to use that. But welcome, thank you both for being here. Know how busy you are.

Jatin Dalal, CFO, Cognizant: Thank you. Very happy to be here.

Tien Tsin Huang, Follow IT services sector, JP Morgan: Yeah. Of course. Let’s get right into it. So, Jatin, for you, a little over a year into the job. So I’d love to hear from you, of course, you know, what what findings have you had here now that you’ve been, what have you learned, what’s been better than expected, what’s been a little bit different?

And of course, some of the changes that you’ve been given your past experience, what’s worked?

Jatin Dalal, CFO, Cognizant: Thank you, Tien Tsin. So I would say many things which I thought are present in Cognizant, which I saw from outside as a competitor, were really present. So it wasn’t something unusual to discover. But they were present at a far greater scale than I had imagined from outside. I think to start with, I think the first thing is just the culture of customer centricity, which was always or which has been deferred in the past.

But it’s very, very deep. It’s very, very part of the DNA of the organization, be it the sales team, delivery team, architecture team, so on and so forth. So that’s one. The second is the will and keenness to win is very, very deep in this organization. So I feel very, very good when we go out on a pursuit, our ability to understand client ecosystem, build a very, very high quality architecture of a deal, and then see through on the other side, not because of price, but because of all that we bring on the table.

And third is the infrastructure that Cognizant has built over the years in terms of IP. TriZetto is, I think, a spectacular asset to have with them. Neuro platform that we have built over the last few years is a clear differentiation when I build a deal. So these are the few things which has really positively resonated with me as an outsider who came from outside and started working and how I can leverage all of that to create organization success.

Tien Tsin Huang, Follow IT services sector, JP Morgan: That’s great. Thanks for going through that. It’s consistent with what we’ve heard. So just maybe digging into the quarter, you just reported it not too long ago. So the biggest takeaway for us is you’re back in the winner’s circle, something that was a goal that was set out by Ravi.

What would you attribute that to? And of course, it’s a question of sustainability and there’s work to achieve that. But what would you attribute the return to Winner Circle?

Jatin Dalal, CFO, Cognizant: So as we mentioned on the earnings call, this is the first quarter. So really, I mean, if at all, it’s just a realization that, yes, we can do it and we are there, but nothing is proven until we do it for a few quarters in a row consistently, a couple of years, three years in a row. What has worked for us is that a few things. One is we have rebuilt the virtuous cycle of winning large deals, executing well, that gives us a right to win the next large deal, but also it gives us the periphery discretionary spend that we can go after in a large deal because it’s very natural for a customer to give you additional 10% when you’re already doing 90%. So that virtuous cycle, started in ’twenty two.

In ’twenty three, we won 17 deals. In ’twenty four, we won 24 deals. Even in this quarter one, we did four large deals, one of which was mega deals. And all of that has worked well. In fact, Tien Tsin, I’m happy to share that on the earnings call, spoke about a few large deals in pipeline as we think about rest of the year.

And between the earnings call and this morning, we have signed another mega deal.

Tien Tsin Huang, Follow IT services sector, JP Morgan: So

Jatin Dalal, CFO, Cognizant: there is that virtuous cycle of winning, executing well and therefore building the right to win the next one, I think has been the biggest contributor.

Tien Tsin Huang, Follow IT services sector, JP Morgan: That’s great to hear. And thank you for the update. And I think maybe just talking about the state of spending and discretionary spending, you mentioned it. It’s great that the large deals have been happening for some time, but the short term project work has been somewhat delayed. What’s happening on the ground, especially post Liberation Day?

Anything noticeable in terms of change or surprise?

Jatin Dalal, CFO, Cognizant: So you know the environment remains fairly uncertain. The impacts are the areas which have got impacted the most are the ones which are associated with manufacturing and supply chain. So therefore, have manufacturing sector, consumer products, retail, to an extent, even travel and hospitality, all of them are impacted a little more. Beyond just tariffs, there are government priorities which are impacting sectors like health, which we spoke about in our earnings call has certainly looked slightly different from the April compared to where it was in quarter one. And that we’ll have to watch very carefully.

The discretionary spend is good and is sustaining well in BFSI segment. That is sort of a good part of the overall picture that we see. So that’s the current color on how the environment is impacting the client preferences.

Tien Tsin Huang, Follow IT services sector, JP Morgan: Yeah. No, that’s fair. So I’ve talked to you and your peers and some of the private companies just debating this long down cycle or tough cycle of spending on the discretionary side, really since late twenty twenty two. And so it raises the question of is it cyclical or is it secular? So as you’ve examined it, Jatin and Tyler, is there any observations or new color you would share on that debate?

Jatin Dalal, CFO, Cognizant: I don’t see a different trend. There is a trend of a secular discretionary demand that comes through the sector. If you see between 2014 and 2019, you will see a particular sector growth, which is led by the addition of work which is coming into the sector. That number has changed between 2025. The reason being that it got bundled up very, very sharply in the early part of the five year cycle.

Post COVID, two years we had bonanza of discretionary spend, and then it tapered off quite a bit. But I don’t see that a living and breathing organization which wants to capture new opportunity of technology and to make itself more efficient, more customer ready, build better products through better engineering, can stay out of a secular investment on technology per se. I feel now we are at a cusp of having two great years and two tough years and now getting back to that secularism that we always used to enjoy industry. All

Tien Tsin Huang, Follow IT services sector, JP Morgan: right, good. So back to the large deals, which you’ve done a lot of, and you just mentioned you won another large deal, mega deal. So can you give us a little bit more on the nature of those deals? Is it more about cost cutting? Is it large transformations?

Is it cloud work? What more can you tell us? Any common themes? Sure.

Jatin Dalal, CFO, Cognizant: Large deal by design has two big swim lanes. One is that of transformation and really doing something big, ambitious and sort of organization changing for the customer. Second is really go out and see that you’re spending $100 If I consider it everything, I create a certain amount of synergy between the pockets of applications, operations and infrastructure and give you overlay AI productivity on that and give you far better economic outcome than what you would receive otherwise. Now we spoke about the deal that we won in quarter one, the mega deal. And that first mega deal was really Swimlane one.

The one that I just spoke about is Swimlane two, which is really going out and saying, let me do this for you far more effectively and far more efficiently than it has been done before. So in that process, I have considered some spend which was in house, which was with other partners, and that’s what we have built.

Tien Tsin Huang, Follow IT services sector, JP Morgan: Okay, good to know. So with you as CFO, when we think about these large deals, right, you have to manage the risk, of course, the pricing, delivery. And is there a concern or consideration around dependency on these large deals and the ramp rates and the timing of all that? How do you manage the maturity of these large deals as they come through, recognizing that the short term work is on pause?

Jatin Dalal, CFO, Cognizant: Yes, So it’s I think even within large deals, you have to see what is incremental and what is most securing your spend, which is you are already doing 80%, ninety % of the work, but this secures you in a very different way. So it has a large component of renewal. The one that I just spoke about has a larger component of renewal. So it’s more security in an otherwise uncertain environment. I have a better sense of a more stronger backlog in the second half of the year versus what, whereas the first one was all new, and therefore, will directly add on the top of the revenue.

Now to your specific question around dependency on large deals, the way the sector works is it goes through an alternative cycles of large deals and discretionary spend at mass across the sectors, and then again, deals otherwise. The companies historically that do well, and you can go back and check, are the ones that are able to manage the transition well between two sectors. So the best way to do this is to, in times like this, is to keep on winning large deal and have a strong backlog. And then when discretionary comes, it sits on the top of that backlog. So you then go out much faster and better than the companies which are not winning large deals in the current count.

Then they get the benefit only the discretionary spend which is coming. So you have to build that base and then put the discretionary on top. So that’s how we are trying to do this. This is nothing very specific to Cognizant, but if you see the successful companies in the sector, they manage this transition very well.

Tien Tsin Huang, Follow IT services sector, JP Morgan: Yes, which reminds me a little bit of, Jatin, of the question of ACV. I think you did talk a little bit about ACV. I know when you think about large deals, extends duration, extends TCV, but any update on ACV since I have you?

Jatin Dalal, CFO, Cognizant: Yes, absolutely. ACV is another important construct because it’s a balance large deal. Large deal numbers look very good, but if they are not resulting in next eighteen months, incremental revenue is a challenge. So we look at both closely. So far, we are doing well on the trailing twelve months basis on ACV growth as well.

So it is not only winning large deals, but we are now at a point that after nearly eighteen to twenty four months of large deals, that whatever we are winning is not just creating a longer term revenue certainty. It is also adding to the incremental revenue I can generate in the next twelve months. So that’s a cycle that when you layer large deal over large deal, that’s where your ACV starts growing.

Tien Tsin Huang, Follow IT services sector, JP Morgan: Okay. So one more on the larger deals and bringing in margin and AI a little bit. Just as you execute these deals and you sign them and agree to the terms, I’m assuming you’re assuming some efficiency baked in from whether it be AI or productivity or changes in pyramid, what have you. How do you manage that risk of delivery, understanding especially if AI is changing so quickly that don’t face cost overruns or challenges in the execute or delivery, contract execution?

Jatin Dalal, CFO, Cognizant: Sure. So all of us who have been in the sector for more than two decades understand that every large deal, not just now but maybe five years back, came with that promise of technology and that promise of technology that you can do things more efficiently fourth year from now than what you can. And thankfully, that cycle always plays out. It has got a little bit more accentuated or accelerated because of AI. And therefore, the customer expectation is also greater.

So if I could sign a deal earlier with a particular level of productivity baked in or signed for on day one, and I had to go back and work on it, that quantum has certainly risen versus where it was before. But that confidence of technology remaining ahead of the curve has played out for, I would say, last thirty years in the industry, and I feel good that we should be able to do it. Also, we also see ourselves vis a vis others in the sector from whatever we can decipher and deals. When you’re competing on deals, it gives you a reality check on some of that. We think we are ahead in terms of understanding what JNI as an opportunity can do for us and what we have to do to then percolate it down in the organization to execute on it.

So I feel good that we have of course, but it’s not just a trust. We have a monthly view of what we call as bid versus bid, and we are very regimental about it. And where we see risk, we really double down. We have teams which go in when we think that something is not moving as fast as it should be.

Tien Tsin Huang, Follow IT services sector, JP Morgan: Okay, good. So just staying with Gen AI, I think I’ve always respected Cognizant and what you how you framed the opportunity around Gen AI around the three factors. Don’t I can read it if you want, but I’m to hear your the way you attack it and how you should encourage us to evaluate your success there.

Jatin Dalal, CFO, Cognizant: Absolutely. So just to recap, the vector one is really around productivity and the hyper productivity that AI can deliver. Vector two is making organizations ready for AI, which is relooking at their data structures, relooking at their internal systems and processes to make them ready to leverage AI. And the third vector is really going and doing and applying agents where we were traditionally not done IT work, which is the Vector three opportunity. And that’s what is a big, big exciting pool of work that we can do eventually.

Right now, as we speak, the one which is really at core of what we are doing is Vector1 because all large deals are being constructed on a productivity promise of AI. And it is not commoditized, therefore it’s a big differentiation for the players who are able to do it better than the others. The second vector, which was around opportunities in cloud, opportunities in analytics and data, we saw a big upsurge between October, November, December, January, February. From March, we have seen more stability on that, so we have not seen it going up as well as we did in last those four months. But it’s not falling off either.

So I think that demand is waiting on sidelines due to environmental reason, and it could start coming back once there is more stability. The third which we are really excited about, and that’s where the role of system integrator will transform from making sure that, for example, two databases of two different competitors is working seamlessly was our original job as a system integrator. Then you say, Okay, two SaaS applications should work seamlessly for organization success. That was our role of SI. Now it will be different.

It would be looking at an agentic workforce of application one, an agentic workforce of application two, and how, as a system integrator, you can work and create a multi agentic system or system for our customer where you work with customer to create orchestrator agents. And that’s the role of SI as it is getting transformed from where we were five to ten years back to what could be an opportunity in future. And also going to areas that we have not gone before, and we have spoken about a lot of operational work that we today do not get direct access to or do not work because we are classically not they are not classically outsourced. They are two small pieces within organization which cannot be outsourced. But everything is up for grabs when you can say, I can deploy agent to do this.

You don’t have to worry about moving that work from Boston to Canada or to another place, Philippines or India. I could deploy an agent to do that for you. So that’s a very different exciting phase, which we are confident at some point the industry will start hitting. And certainly, Cognizant is very keen to do that.

Tien Tsin Huang, Follow IT services sector, JP Morgan: Yes, on the AgenTex side, and you mentioned SI’s role on that, I I think there’s a, we’re hearing it a lot, know Puneet has talked about a lot, right, services as a software as theme. AgenTik has been a theme at the conference, but help us understand Cognizant’s right to win there, especially versus software players or the pure play AI players that might want to own that and control that as well.

Jatin Dalal, CFO, Cognizant: Absolutely. So let me say that there will be a role that will be played by the pure play AI organizations. There will be a role played by agentic forces of individual SaaS players. And there will be a role of somebody looking across the spectrum of work and looking at how I can stitch an answer together. And that’s where the SI will come together.

I’ll give you an example that we use within Cognizant, which is when an employee leaves an organization, we typically do a settlement for that employee. And I’m sure all of you have seen that that’s a fairly complex process because you need to go to 15 different departments from payroll to IT to some security to legal, etcetera, before you can do that. And almost every department has deployed a system. And maybe in future, agentic workforce managing that process. And you need somebody to orchestrate an answer for the employee across those five different agentic workforce which are operating in five different systems.

And that’s where we have been able to deploy successfully. We have demonstrated case studies around it internally that we use. And that’s where I see our role. I don’t think we are going to win at the cost of a pure play AI mega organization. But there is a role for system integrator that we see.

And the reason we can win within this space is it has to have a deep applications and operations knowledge. As you know, Cognizant is largest among all the players in applications and operations that we compete. Of course, there are players which are bigger than us. But if you really see for our dissection of $20,000,000,000 for the percentage of revenue that comes from applications and BPO operations, we have the largest chance. So that gives us comfort that we will not be left behind in this opportunity.

In fact, we’ll lead this opportunity. Okay, good.

Tien Tsin Huang, Follow IT services sector, JP Morgan: One more question, then I’ll open it up so be ready to ask questions. Just on the workforce side, the impact on the employee base from all of this, but I’ll ask you more on the positive front, which is do you have the personnel to do this new work that’s evolving so quickly? Is there a retraining that’s required? Is your cost of doing business going to be higher for some period? How do you see that, Jatin?

Jatin Dalal, CFO, Cognizant: I think it’s part of the investment in AI that we’ll have to make that we give opportunity to every associate to add to the skill set that they have. I think it’s very easy to make it zero one outcome, saying an AI opportunity ready resource and AI opportunity not ready resource. I don’t think that’s right. The right answer is somebody who’s already very deep in domain and applications also is AI ready is a one plus one to our customer. So I don’t want to look down on anything that we are doing today because that’s a sort of base on which we need to build further.

You can’t replace that overnight and you should not. It would be counterproductive. So we are very committed and conscious that that investment needs to happen. We have spoken about that investments earlier. We had, on last count, more than 230,000 of our employees well trained on some of these techniques, not only our customer facing employees, but also our all employees, functional employees, etcetera.

How do we leverage this opportunity which is in front of us? The good part about IT services industry is that a typical employee is also very conscious about her or his external marketability. And they have their own aspirations to work with Apple, to work with Google, to work with Meta, to work with whoever else. And therefore, they also invest that discretionary effort after work, over weekend, to be ready.

Tien Tsin Huang, Follow IT services sector, JP Morgan: So

Jatin Dalal, CFO, Cognizant: it’s not an effort where there is no openness or willingness. Actually, there’s a lot of keenness to learn, you provide resources and you fly with that.

Tien Tsin Huang, Follow IT services sector, JP Morgan: Right. There’s motivation There’s motivation. To get better. Okay. Thank you.

Happy to take questions. If any. Otherwise, I keep going. Yeah, Brendan or Puneet?

Brendan, Unidentified speaker: I’d like to ask about discretionary spend. So, like you talked about, like how there are the large deals discretionary, they alternate, and whenever discretionary comes back, it’ll be ready. What gives you confidence that whenever clients are ready to spend on small projects, discretionary projects, Cognizant will be there. Like are you seeing like you talked about BFSI, maybe so maybe give us example that gives that confidence.

Jatin Dalal, CFO, Cognizant: Sure. So as you can see in BFSI, which is largely discretionary business, we were minus 6% growth four quarters back. We are plus 6% growth after that. So we have turned this number. And there is no inorganic setting there.

The Belkin acquisition that we did had no BFSI components. So this is purely organic. So that’s a data point of success. But I’ll also tell you what lies behind. Lies behind is a very, very structured demand fulfillment view that we look at every morning.

And I’m not exaggerating. I canceled this morning’s call because I was speaking here. But every morning we see it. And I know which pocket I have not fulfilled something that I should have fulfilled yesterday night. And we are very, very hard.

We have the next forty five days requirement view and hiring view and the people coming off from projects and making available. So this is deep science and daily rigor beyond just getting systems ready and believing you are ready. It is just checking yourself every day, can you run that 10 kilometer every morning or not? Then you are ready. If you don’t, then you are not ready.

So that’s how we see it.

Tyler Scott, Investor Relations, Cognizant: Maybe one other, Puneet, that I think is an interesting data point is, as we’ve seen over the last couple of quarters, one of our fastest growing service lines internally has been digital engineering. We had our leader, Prasad, speaking at our Investor Day. Completely discretionary work and term in nature. It’s roughly a $2,000,000,000 business for us that’s been growing, I think, versus market rates, I would say above what public competitors are doing. That gives us a lot of confidence that we have the portfolio and the capabilities to come in and win this discretionary work.

Now, of course, the environment has dramatically changed in the last couple of months and quarters, but that is something that we think is sustainable certainly through the first half of this year and I think gives us a lot of confidence. That also happens to be one of the service lines where we are applying our platform solutions and AI led productivity. FlowSource as the easy example, our software development lifecycle tooling for developers. We’re driving productivity. We’re delivering it for customers.

It is manifesting itself in actually more spending with the customers and driving faster growth. So, I think it’s one of our strongest examples of where we actually see that playing out in the portfolio.

Unidentified speaker, Unidentified speaker: Thank you so much for taking our questions, gentlemen. Longer term follow-up on Puneet’s question. Could you talk to us about your right to win in the third vector, agentifying the enterprise? Thank you.

Jatin Dalal, CFO, Cognizant: Right to win in the third vector?

Tien Tsin Huang, Follow IT services sector, JP Morgan: Which one?

Unidentified speaker, Unidentified speaker: Yeah, like Agentifying. You all have articulated the vision, I think, better than almost anybody, particularly Ravi at Investor Day. So it’s a new area, but why are you all the ones who will help enterprises identify?

Jatin Dalal, CFO, Cognizant: No, sure. So I think this is an opportunity where every segment of technology organizations will leverage. If I am a SaaS player, I’m not going to rely on my workflow anymore. I’m just going to build a whole lot of agents around my workflow. That’s going to be reality.

If I am a large company like Microsoft or Google, this is an opportunity of lifetime on identification. And therefore, I’m going to create horizontal agents that can be leveraged for anyone. And similarly, there’ll be a play for system integrator, and I think the role for system integrator or the opportunity for us is to go after the pools of work that are either do not addressed by us, as I spoke before. And we feel we are well placed because we have a large application in BPO business, which is sort of the core rate which you can pick up this work and execute on. If you are on infrastructure site, for example, it is relatively difficult because you have to traverse the distance of understanding the process.

But if you understand process through application workflows and operations work that you’re doing, you are right in the middle of that agentification operation. You.

Tien Tsin Huang, Follow IT services sector, JP Morgan: Any other questions? Happy to take them. Don’t be shy. Alright. So, let’s close that.

We have five minutes left. I know we talked a lot about revenue. Let’s quickly dig a little bit more on margin. It’s just a basic one for you, Justin. Just thinking coming in from Wipro and lending here, why is 10 to 30 bps the right expansion target for the company?

Jatin Dalal, CFO, Cognizant: It is because we are making two promises. Number one is we want to get to that winner’s circle consistently every quarter. And we are not there if you look at last few years. So we need and one of the things we have done very well is we have been balanced between our ambition to expand margin and our need to invest in business to get that growth back. So it has to be a good calibration of continue to invest, stay ahead in the game.

For example, I think our JN AI lab or JN AI pool of talent, I think, is probably significantly greater investment than many others. So we need to invest. And therefore but we don’t feel good about where our margins are right now, and I think we have opportunity to go up. So we will have a moderate expansion every year even as we continue to systematically work towards improving our growth trajectory and consistently being winners.

Tien Tsin Huang, Follow IT services sector, JP Morgan: Yeah. I know you’ve done the Belkin deal. And from an M and A standpoint, we trust Cognizant, of course, on the revenue side to do what you need to do. But do you have any constraints on doing the M and A you’d like to do, given the margin framework that you’ve laid out for us?

Jatin Dalal, CFO, Cognizant: I mean, we consider that a little bit as part of the investment. Of course, a deal like Belkin has large dilutive impact. For example, we spoke about 50 basis points last year, that adds because it was only five months last year, 4.5 months, and now you have eight months or seven months to think about. So yes, I would say it’s not a constraint, but it is something that we have to be watchful about that we don’t get carried away one way or the other on our margin ambition or our M and A ambition in some form. I think M and A is going to be a mainstay for us from a part in the strategy.

So it doesn’t mean we’ll do many large deals or Belkin like deals, but there are clearly pockets where we are behind the curve in terms of our market presence, our presence in a particular capability or skill set, and that will need to continue to fulfill. So you would see us investing on that. And the framework that, therefore, we have laid out considers that also as part of the overall investment that I spoke

Tien Tsin Huang, Follow IT services sector, JP Morgan: Okay, good. So we covered a lot of I guess we’re out of time, know, but just to close it out, for both of you, beyond revenue growth and margins, always the stuff that we stress and sweat over, What other KPIs do you think are important for us to track Cognizant’s emergence and improvement in execution against this transformation, staying in the winner’s circle and earning a higher valuation?

Jatin Dalal, CFO, Cognizant: Okay. It’s a great question. Thank you for asking this. Our business is really getting two pillars, right, customer satisfaction and employee satisfaction. If we can get these two things well, even revenue growth and margin is sort of step two of this.

And I think we have done a very good job of managing both in the last two, two point five years where we are no longer losing customers, which was a challenge which Ravi faced when he joined. In fact, we spoke on the earnings call. We haven’t had any major ramp down since the beginning of the year. Even in an environment like this, hopefully that would continue. And employee satisfaction is also key because every time an HRT employee also leaves an impression on remaining employees saying maybe somewhere else is a better place to work than Cognizant.

So it creates a fuel. But also, cost wise, every time somebody goes out and I have to replace a similar capability resource, I have to add 20%, thirty % of the cost in India or in US, maybe 10%, fifteen %. So there is a cost issue around it. So if we can manage this, and as an external observer, if you see us doing well on this too, I think a lot will automatically fall. Perfect.

Tien Tsin Huang, Follow IT services sector, JP Morgan: No, it’s important to manage both sides of the equation. So I’m glad you answered it that way. Jatin, Tyler, thank you for the time. Always great to catch up, always.

Jatin Dalal, CFO, Cognizant: Thank you very much. Thank you for listening in, and thank you for the opportunity.

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