Recent Cognizant Survey Shows Growing Need for Alignment of IT and Bus

Recent Cognizant Survey Shows Growing Need for Alignment of IT and Business Strategy

    Business Editors/High-Tech Writers

    TEANECK, N.J.--(BUSINESS WIRE)--Feb. 22, 2005--Cognizant (Nasdaq: CTSH)

--	Cognizant is Continuing to Grow Its Business Technology Consulting Practice
--	More Than 50% of IT Organizations in U.S. Are Dissatisfied with the Link between IT Spending and Business Priorities

    Cognizant (Nasdaq: CTSH) a leading provider of IT services, today announced the results of a recent research survey that shows that customers require more services that help align IT spending with strategic business priorities and needs. The study was designed and implemented by Cognizant, Infoworld, and Global Fluency. It used the results from over 250 IT leaders in the United States.
    Cognizant realized the need for business and technology consulting early, and has been making investments to meet the growing need for IT strategy services. Cognizant now has over 500 MBAs and business analysts helping customers with business and IT consulting to address this need, and is continuing to enhance this capability.

    The Survey

    When asked how well IT spending is aligned and allocated with strategic priorities and business needs, more than 50% of the respondents give the process relatively low marks.
    In a ranking from 1 to 5 with 5 being the highest score, 27% of respondents gave a 3 ranking, 16% gave a 2 ranking and 8% a 1 ranking. Only 13% of respondents gave a 5.
    "There is a huge need to ways for business to partner more closely with IT," said Vanchi Vanchinathan, Director of IT Web Systems Solutions for California State Automobile Association. "The ideas and strategy development have to flow both ways. IT needs to show their business partners which new and emerging technologies and strategies can add value to the organization and also has to be responsive to the needs driven by business units. Cognizant has helped drive strategy in both directions."
    "Cognizant systematically queries customers to identify growing needs and takes action to meet future requirements. We identified this trend several quarters ago, and this recent survey shows that the demand is still strong," said Lakshmi Narayanan, President and CEO of Cognizant. "Our customers are expecting more value-added services from us and we are able to provide them within our industry-leading best-of-both-world's global delivery model. We are able to combine industry and business-savvy technology expertise in an easy-to-use and cost effective delivery model."
    "Business and technology consulting services are part of most of our client engagements and it is an integral part of what we deliver," said Francisco D'Souza, COO of Cognizant, "We are well organized to continue expanding our ability to deliver these high value services. Cognizant recognized early that business and technology consulting would be in high demand, and we are able to use the MBAs in our onsite/offshore model, where 70% of the services are delivered from offshore."

    About Cognizant Technology Solutions

    Cognizant (NASDAQ: CTSH - News) is a leading provider of IT services. Focused on delivering strategic information technology solutions that address the complex business needs of its clients, Cognizant provides applications management, development, integration, and re-engineering, infrastructure management, business process outsourcing, and a number of related services such as enterprise consulting, technology architecture, program management and change management through its onsite/offshore outsourcing model.
    Cognizant's more than 15,000 employees are committed to partnerships that sustain long-term, proven value for customers by delivering high-quality, cost-effective solutions through its development centers in India, and onsite client teams. Cognizant maintains P-CMM and SEI-CMM Level 5 assessments from an independent third-party assessor, was recently named Forbes' Best Small Company in America for the second consecutive year, and ranked as the top information technology company in BusinessWeek's Hot Growth Companies. Further information about Cognizant can be found at http://www.cognizant.com.

    This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions and the factors discussed in our most recent Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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CONTACT: Cognizant Technology Solutions Corporation Larry Gordon, 201-678-2743 lgordon@cognizant.com or Financial Dynamics Investors: Ian Bailey/Kirin Smith, 212-850-5600 or Press: Brian Maddox/Scot Hoffman, 212-850-5600 shoffman@fd-us.com

KEYWORD: NEW JERSEY INDUSTRY KEYWORD: HARDWARE SOFTWARE NETWORKING INTERNET E-COMMERCE SOURCE: Cognizant Technology Solutions Corporation

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