The acquisitions of Belcan and Thirdera in 2024 are aimed at expanding talent, experience, and capabilities in engineering research & development and ServiceNow platform solutions, respectively. These acquisitions contributed to revenue growth, particularly in Products and Resources.

Cognizant is focusing on investments in digital and AI capabilities across industries and geographies, including training and reskilling of technical teams. This is intended to drive organic growth and meet client demands for AI-ready solutions.

The NextGen program, completed in 2024, is aimed at simplifying the operating model and optimizing corporate functions. The savings generated are intended to fund investments in people, revenue growth opportunities, and office space modernization.

Voluntary attrition in tech services increased to 15.9% in 2024 from 13.8% in 2023. This indicates a potential challenge in retaining skilled employees.

Cognizant emphasizes listening to employees and enhancing their experience, conducting engagement surveys and assessing retention regularly. This suggests a focus on addressing employee concerns and improving morale.

Cognizant continues to invest in upskilling its workforce, with more than 277,000 employees acquiring at least one skill in 2024. This includes a focus on generative AI training, indicating a proactive approach to adapting to new technologies.

The company acknowledges intense competition and the need to keep pace with rapid technological advances. Failure to differentiate services or convey their value could lead to loss of business and downward pressure on margins.

The company recognizes the significant impact of AI and the need to invest in this space. However, unsuccessful AI implementation or failure to bring AI solutions to market effectively could negatively impact financial performance and competitive position.

The company acknowledges the increasing sophistication of cybersecurity threats and the potential for data breaches to cause shutdowns, disruptions, and unauthorized access to sensitive information. This could lead to regulatory actions, client attrition, and financial damages.

The company's ability to provide certain services depends on relationships with third-party alliance partners. If these partners decide to compete with Cognizant or reduce access to their products, it could impair the company's ability to meet client demands.

The company faces significant competition from traditional competitors and new market entrants in the AI technology and services market. Some clients may develop their own AI capabilities.

The company acknowledges intense competition for skilled labor, particularly in AI and digital areas. Inability to attract, train, and retain skilled employees could materially adversely affect business and results of operations.

The NextGen program, which concluded in 2024, was designed to simplify the operating model and optimize corporate functions. The savings generated are intended to fund continued investments.

Profitability is affected by the efficiency with which the company runs its operations, including the cost of operations and the compensation and benefits costs of employees. Inefficient employee utilization rates can negatively impact profitability.

The company operates an integrated global delivery model with delivery centers worldwide. The effectiveness of this model is crucial for providing a full range of services to clients.

The company is making investments to scale its AI capabilities and is increasingly using AI-based technologies in client offerings and internal operations. This is a key competitive factor.

The Cognizant Moment digital experience practice is designed to help clients leverage the power of AI to reimagine customer experiences and drive growth.

The company recognizes the importance of IP and has made investments in protecting it, including areas directed at AI-related technologies. They rely on a combination of patent, copyright, and trade secret laws.

The company's capital allocation framework anticipates deploying approximately 50% of free cash flow for acquisitions and 50% for share repurchases and dividend payments. The company reviews its capital allocation on an ongoing basis.

During 2024, the company paid quarterly cash dividends of $0.30 per share, or $1.20 per share in total for the year. In February 2025, the board approved a cash dividend of $0.31 per share.

The company's stock repurchase program allows for the repurchase of up to $11.5 billion of Class A common stock. During the three months ended December 31, 2024, the company repurchased $140 million of stock.

Shifting stakeholder expectations and evolving regulatory and disclosure standards around ESG could impact the business. Failure to comply with new laws, regulations, or reporting requirements could adversely impact reputation.

There are inherent climate- and weather-related risks everywhere that the company conducts its business. Developments related to regulatory, social or market dynamics, stakeholder expectations, national and international climate change policies, the actual or perceived frequency or intensity of extreme weather events or the availability and functionality of critical infrastructure and resources, in addition to other factors resulting from such developments or that may not otherwise be known to or anticipated by us, could significantly disrupt our supply chain, our clients' operations and our ability to deliver services.

The company is subject to, and expects to become increasingly subject to, laws, regulations and international treaties relating to ESG, including the European Union's Corporate Sustainability Reporting Directive (CSRD) and California's climate change disclosure requirements.

Global macroeconomic conditions have a significant effect on the business as well as the businesses of clients. Volatile, negative or uncertain economic conditions have in the past and could in the future cause clients to reduce, postpone or cancel spending on projects.

The business is particularly susceptible to economic and political conditions in the markets where clients or operations are concentrated. Revenues are highly dependent on clients located in the United States and Europe.

A substantial portion of employees in the United States, United Kingdom, EU and other jurisdictions rely on visas to work in those areas such that any restrictions on such visas or immigration more generally or increased costs of obtaining such visas or increases in the wages we are required to pay employees on visas may affect our ability to compete for and provide services to clients in these jurisdictions, which could materially adversely affect our business, results of operations and financial condition.