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Case
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Reference no. 9-408-099
Published by: Harvard Business Publishing
Originally published in: 2008
Version: 31 May 2011
Revision date: 2-Nov-2011

Abstract

In the highly competitive information technology outsourcing industry, Cognizant Technology Solutions has developed a strategy to differentiate itself by emphasizing building very close client relationships through its 'Two-in-a-box' (TIB) model. This model is based on having two people share complete responsibility for the client. In the US or Europe, the 'on site' person, along with his or her relationship management team, is responsible for understanding the client's needs, obtaining projects and properly scoping out the work. The 'offshore' person in India or elsewhere, along with his or her delivery team, is responsible for completing the project in a high quality and timely way. The same top- and bottom-line metrics are used to evaluate the performance of both the on site and offshore managers. This strategy (as opposed to ones based on things like low cost and innovation used by Cognizant's competitors) is intended to build deep and strong client relationships that will maximize Cognizant's 'share of wallet.' One interesting aspect of TIB is Cognizant Business Consulting, a 1,700-person group which advises clients in the context of helping them develop IT solutions for their business challenges. More recently, and as the next evolution of the TIB model, Cognizant is developing what it calls 'Cognizant 2.0' or C2. C2 is a delivery platform based on Web 2.0 technology that enables Cognizant to subdivide work into tasks that can be allocated wherever in the world the best resources within Cognizant exist based on cost, expertise and availability while at the same time maintaining proper to collaboration and integration to ensure timely and high quality delivery.
Size:
$1.424 billion in 2006; 38,659 employees
Other setting(s):
2007

About

Abstract

In the highly competitive information technology outsourcing industry, Cognizant Technology Solutions has developed a strategy to differentiate itself by emphasizing building very close client relationships through its 'Two-in-a-box' (TIB) model. This model is based on having two people share complete responsibility for the client. In the US or Europe, the 'on site' person, along with his or her relationship management team, is responsible for understanding the client's needs, obtaining projects and properly scoping out the work. The 'offshore' person in India or elsewhere, along with his or her delivery team, is responsible for completing the project in a high quality and timely way. The same top- and bottom-line metrics are used to evaluate the performance of both the on site and offshore managers. This strategy (as opposed to ones based on things like low cost and innovation used by Cognizant's competitors) is intended to build deep and strong client relationships that will maximize Cognizant's 'share of wallet.' One interesting aspect of TIB is Cognizant Business Consulting, a 1,700-person group which advises clients in the context of helping them develop IT solutions for their business challenges. More recently, and as the next evolution of the TIB model, Cognizant is developing what it calls 'Cognizant 2.0' or C2. C2 is a delivery platform based on Web 2.0 technology that enables Cognizant to subdivide work into tasks that can be allocated wherever in the world the best resources within Cognizant exist based on cost, expertise and availability while at the same time maintaining proper to collaboration and integration to ensure timely and high quality delivery.

Settings

Size:
$1.424 billion in 2006; 38,659 employees
Other setting(s):
2007

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