Cognizant cuts India office space in 2024 amid global work shift
CHENNAi, INDIA — Cognizant Technology Solutions, a US-based IT services leader, reduced its office space in India by over 2 million square feet (sq.ft.) in 2024, representing a 10% decline in its global real estate footprint.
This move is part of the company’s cost-optimization strategy under its NextGen program, which focuses on streamlining operations and adapting to hybrid work models.
Shift toward Tier-2 cities and flexible workspaces
As of December 2024, Cognizant reported owning or leasing 22 million sq.ft. of office space globally, down from 24 million in December 2023 and 28 million in December 2022. With 90% of its delivery centers located in India, the company is transitioning from large metropolitan hubs to smaller tier-2 cities such as Bhubaneswar, Indore, and Ahmedabad’s Gift City.
CFO Jatin Dalal stated during a recent press meet that the company is “exiting a few facilities that are no longer being used or those the company does not plan to use” while investing in newer locations to support future growth.
Chennai campus among properties up for sale
Cognizant’s Chennai campus in Thoraipakkam, spanning approximately 400,000 sq.ft., is reportedly on the market as part of this consolidation effort.
The company’s office footprint now stands at 8 million sq.ft. in Chennai, 3 million sq.ft. in Hyderabad, and 2 million sq.ft. each in Pune, Bengaluru, and Kolkata. These reductions reflect Cognizant’s strategic focus on optimizing its real estate portfolio.
Cost-saving measures target $100 million annually
The downsizing aligns with Cognizant’s goal to save $100 million annually through real estate optimization. This reduction coincides with a workforce realignment as the company transitions to a hybrid work model.
As of December 31, 2024, Cognizant employed 336,800 people globally, with over 241,500 based in India.
Industry trends drive real estate strategy
Cognizant’s move reflects broader trends in the IT sector as companies adapt to post-pandemic realities.
Kamal Karanth, co-founder of Xpheno, noted that hybrid work models and competition from global capability centers (GCCs) offering flexible options are reshaping workspace strategies. CEO Ravi Kumar S has also emphasized the importance of balancing flexibility with productivity.
This strategic shift underscores Cognizant’s commitment to cost efficiency while investing in modern facilities designed for hybrid operations and future business needs.
Read more here.
Related news
- AI drives transformation in the finance outsourcing sector: ISG · 27 Sep 2024
- BPO market projected to reach $739.4Bn by 2033 — Market.us · 1 Apr 2024
- Foundever to close Plymouth call center, impacting jobs in UK · 11 Apr
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
Stay ahead of the outsourcing industry. Join thousands of business leaders who rely on Outsource Accelerator for the news, trends, and expert insights that matter. Subscribe to our free newsletter and never miss an update.
