Cognizant Cancels Plans for Two IT Hubs in Hyderabad

Why it matters

- This move is part of a broader strategy initiated in 2023 to become "asset-light," which includes vacating 11 million square feet of office space globally and selling off large, owned campuses. - As part of this strategy, Cognizant is divesting its 10-acre campus in Gachibowli, Hyderabad, and a 14-acre campus in Siruseri, Chennai. - The cancellation of older SEZ development plans, such as one proposed for 2.51 hectares in the Ranga Reddy district in 2016, reflects this long-term shift away from developing large, single-location SEZs. - Instead of developing new SEZs, Cognizant has just inaugurated a new 1 million square foot campus in Kokapet, Hyderabad, in August 2024. - This new Kokapet facility is designed to accommodate up to 20,000 employees and will focus on advanced technologies like AI, machine learning, and digital engineering. - The Kokapet campus is set to make Hyderabad Cognizant's largest employee base in the world, surpassing Chennai with a projected 57,000 employees. - This strategy also involves expanding into Tier-II cities such as Visakhapatnam and Indore to access a wider talent pool, while simultaneously consolidating operations in major metro areas. - The Telangana government is actively encouraging IT expansion beyond Hyderabad, with a policy to establish new IT hubs in several Tier-II towns, a strategy that aligns with the industry's move towards a more distributed workforce.

Key numbers

• The company now prioritizes proximity to talent hubs and 24/7 operational resilience over large, centralized campuses.
• - This move is part of a broader strategy initiated in 2023 to become "asset-light," which includes vacating 11 million square feet of office space globally and selling off large, owned campuses.
• As part of this strategy, Cognizant is divesting its 10-acre campus in Gachibowli, Hyderabad, and a 14-acre campus in Siruseri, Chennai.
• The cancellation of older SEZ development plans, such as one proposed for 2.51 hectares in the Ranga Reddy district in 2016, reflects this long-term shift away from developing large, single-location SEZs.

What happens next

• The cancellation of older SEZ development plans, such as one proposed for 2.51 hectares in the Ranga Reddy district in 2016, reflects this long-term shift away from developing large, single-location SEZs.
• This new Kokapet facility is designed to accommodate up to 20,000 employees and will focus on advanced technologies like AI, machine learning, and digital engineering.
• The Kokapet campus is set to make Hyderabad Cognizant's largest employee base in the world, surpassing Chennai with a projected 57,000 employees.

Sources

• now prioritizes
• This move is part of
• The cancellation of
• Instead of developing
• This new Kokapet facility
• The Telangana government

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