2015 Annual Report Our Ability to Anticipate & Deliver on Clients’ Digital Imperatives Yields Solid Performance Across Business Segments
Total Page:16
File Type:pdf, Size:1020Kb
2015 ANNUAL REPORT OUR ABILITY TO ANTICIPATE & DELIVER ON CLIENTS’ DIGITAL IMPERATIVES YIELDS SOLID PERFORMANCE ACROSS BUSINESS SEGMENTS REVENUES OPERATING INCOME (in millions) (in millions) $2,142.0 $12,416.0 $1,884.9 $10,262.7 $1,677.9 $8,843.2 $1,361.5 $7,346.5 $1,136.5 $6,121.2 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 STOCKHOLDERS’ EQUITY EMPLOYEES (in millions) $9,278.1 221,700 211,500 $7,740.2 171,400 $6,135.8 156,700 137,700 $4,854.4 $3,952.9 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 THE DIGITAL SHIFT DIGITAL IS DRIVING A ONCE-IN-A-GENERATION SHIFT IN HOW WE LIVE, WORK AND PLAY. IT’S THIS SHIFT THAT MAKES IT POSSIBLE — AND NECESSARY — FOR BUSINESSES TO RADICALLY RESHAPE HOW THEY INTERACT AND TRANSACT WITH CUSTOMERS AND PARTNERS, SEAMLESSLY CONNECTING THE PHYSICAL WITH THE VIRTUAL. COMPANIES THAT SUCCESSFULLY NAVIGATE THIS SHIFT ARE REIMAGINING AND REINVENTING THEIR BUSINESSES, DRAMATICALLY ALTERING THE DECADES-OLD — SOMETIMES CENTURIES-OLD — WAYS IN WHICH THEY SERVE THEIR MARKETS. THE COGNIZANT DIFFERENCE Cognizant is guided by a singular mission – to help clients across industries build stronger, more agile and innovative businesses. We take an advisory led approach that helps them simultaneously boost their operational efficiency; ensure that vital business functions work better, faster and less expensively; and enhance their overall effectiveness with next-generation IT services, modern platforms and digital models that unleash new market potential and deliver ever-higher levels of performance. TO OUR STOCKHOLDERS More and more companies recognize the need to disrupt their own business models, redesign Cognizant again delivered industry-leading their products and services, and rethink the growth in 2015. Revenue reached a record ways in which they engage with customers, $12.42 billion, rising 21% from 2014. This employees and partners. In this environment, strong performance reflects our unique ability organizations must make the leap from doing to help global organizations fulfill a dual digital to being digital to meet the rapidly- mandate. Leaders recognize that they must changing demands of customers, develop run better — operating with greater efficiency, new business models based on the value productivity and flexibility. They also must of information and data, and become more run differently — embracing innovation and competitive by using technology to be more reinventing their businesses to compete in nimble and wring out excess operating costs. today’s dynamic digital world. Cognizant is a trusted partner in navigating With our vast process and technology this shift — helping clients architect, build capabilities, robust consulting expertise, and scale digital capabilities enterprise- deep industry knowledge, global delivery wide. Clients seek to team with us to drive network, and 221,700 talented associates, innovation and create products, services we are well positioned to help clients and customer experiences that connect the master both sides of the dual mandate. physical and virtual worlds. Toward that end, we continue to invest in critical business and A STRONG PARTNER technology capabilities to further increase FOR DIGITAL ENTERPRISES our value to clients and shareholders. Digital is now the lifeblood of our clients’ business — and our own. We see global Digital Transformation at Scale demand being shaped by the shift from We have developed capabilities to help clients traditional physical value chains to more drive business change across their operations agile value chains that rely on data and and inform their go-to-market activities. modern IT capabilities. This is creating Our Cognizant Digital WorksTM business is substantial market opportunities for us. central to this effort. Digital Works offers ORGANIZATIONS MUST MAKE THE LEAP FROM DOING DIGITAL TO TO MEET THE RAPIDLY-CHANGING DEMA DEVELOP NEW BUSINESS MODELS, AND BECOME MORE COMPE TO BE MORE NIMBLE AND WRING OUT EXCESS O technologies, methods, dedicated creative spaces, a fresh mindset and an integrated team to help clients rapidly build, pilot and scale enterprise-level digital initiatives. Today, we are driving change in such industries as financial services, healthcare, travel & hospitality, retail, manufacturing and logistics. Next-Generation IT Services We are extending our IT services to help clients create a next-generation technology entire processes or sub-processes to us to own infrastructure to satisfy their dual mandates. and operate, on either an output- or outcome- This allows them to achieve high levels of based model. These platforms offer variable operational efficiency while becoming effective cost structures and speed time-to-value by digital businesses. Our services help clients enabling clients to quickly achieve best-in- realize higher levels of automation, and convert class performance. Analytics embedded in the core IT activities into managed services that platforms provide critical, real-time, actionable drive innovation and reduce operational insights. We have delivered platform solutions costs. We also assist them in modernizing to our top clients across many industry legacy systems and creating core platforms, sectors, and expect to see continued growth processes and infrastructure that support in this business over the short and long term. digital business across the extended enterprise and deliver higher levels of performance. ENVISIONING THE DIGITAL FUTURE A key element in accelerating our clients’ Platform-Based Solutions transformation is our consulting expertise. Increasingly, we offer platform-based solutions Cognizant Business Consulting works in that help clients reach new levels of efficiency concert with our other teams, particularly and effectiveness, while enhancing their ability Digital Works and Business Process Services, to innovate and accelerate the shift to digital. to help clients envision and execute the digital With platform solutions, clients can turn over shift. Many client engagements are consulting- BEING DIGITAL ANDS OF CUSTOMERS, ETITIVE BY USING TECHNOLOGY OPERATING COSTS CONVERTING DIGITAL PROMISE INTO REALITY At Cognizant, we are well positioned to help clients navigate the digital shift and steer a course toward new horizons of opportunity. We have a proven ability to guide clients through technology- enabled business transformation, plus a deep understanding of what organizations across led, bringing together precision strategic thinking, industries and the globe need to thrive in today’s broad technology acumen and deep industry new business world. We are committed to investing knowledge to speed our clients’ digital journeys. in expanded capabilities and solutions. And, we have a team of talented people with exceptional DRIVING PERFORMANCE & industry, technology and process expertise and SHAREHOLDER VALUE a passion for enabling our clients’ success as we Cognizant’s ability to align with clients’ changing help them envision and build a bright digital future. needs continues to drive profitable growth and enhance shareholder value. Our 21% increase Sincerely, in revenue and a 13% rise in net income for 2015 reflected solid performance across all business segments, our expanded service offerings, and the full-year contribution from our November 2014 acquisition of TriZetto, Francisco D’Souza D’Souza among other factors. We ended the year Chief Executive Officer with nearly $5 billion in cash and short-term investments, and have deployed our capital to We invite you to visit Cognizant.com/investors for more invest in growth while also returning value to information on our performance and how we are helping shareholders via our stock buyback program. clients navigate the shift to the new digital era. Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2015 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-24429 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION (Exact Name of Registrant as Specified in Its Charter) Delaware 13-3728359 (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification No.) Glenpointe Centre West 500 Frank W. Burr Blvd. Teaneck, New Jersey 07666 (Address of Principal Executive Offices) (Zip Code) Registrant’s telephone number, including area code: (201) 801-0233 Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Class A Common Stock, $0.01 par value per share The NASDAQ Stock Market LLC Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.