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COGNIZANT 2010 SUSTAINABILITY REPORT




                                            SUSTAINABILITY REPORT 2010




                                       Responsibility at work
TABLE OF CONTENTS
Introduction                        1   Commitment to Customers       16
Letter from CEO                     2   Educating for the Future      18
Letter from VP of Sustainability    4   Governance and Ethics         24
Organizational Profile               6   Stewards of the Environment   30
The Big Picture of Sustainaility   10   Responsibility at Work        38
Sustainability at Cognizant        14   GRI Indicators                48
Be Cognizant. Those two words deliver several essential messages about our mission.

We want the readers of this report to “be cognizant” — and discover how a leading provider
of custom information technology, business process and strategic consulting services
redefines the way companies can become smarter and stronger through global services.
We also want readers to be aware, to “be cognizant,” of new approaches — about the
future of work, for instance — that will give their companies a competitive advantage.

And we want readers to “be cognizant” of the way we do business and our positive
environmental, social and economic impact, because sustainability is a smart business
strategy. Which brings us to our first formal 2010 Sustainability Report. In it, we employ
the sustainability reporting framework of the Global Reporting Initiative (GRI) — the
gold standard of environmental, social and governance, or ESG, indicators.

Sustainability is defined in many ways but we believe it truly relates to meeting “the
needs of the present while not compromising the needs of future generations,” which
is how the United Nations’ Brundtland Commission defined sustainable development in
its “Our Common Future” report.

We hope you carefully read our 2010 report — and let us know what you think by
emailing us at sustainability@cognizant.com. This report — a necessary benchmark in
a journey to continually improve our sustainability performance — conveys Responsibility
at Work at Cognizant.
Letter
         from CEO
         Francisco D’Souza




2   Cognizant Technology Solutions
At Cognizant Technology Solutions Corporation, sustainability is vital to our success. Our internal
performance and client satisfaction depend on how we:

    • Provide what’s best for people and the environment.
    • Conduct our business affairs, employing the highest standards of personal and corporate conduct.
    • Serve and satisfy our customers; thus shaping our ability to sustain our own future.

It also concerns how we support our employees, the communities where we work and the next generation
of professionals. We do this through our Cognizant Foundation, Project Outreach for our global education
endeavors and Go Green for reducing pollution for our planet, among other initiatives. This also defines sus-
tainability at Cognizant. We call it Responsibility at Work.

While sustainability is not new to our 17-year-old organization, this is our first formal report. It reflects a
broader sustainability program introduced in 2010 and an enhanced focus on its definition as set forth by the
Global Reporting Initiative (GRI), the global leader in sustainability reporting.

We have embraced the GRI’s foundation of environmental, social and governance, or ESG, indicators as well as
economic considerations. We also appointed a vice president of sustainability to lead our efforts and engage
our stakeholders. This engagement will inform how we will contribute to the value and sustainability of our
brand and to our continued financial success.

Education is essential to Cognizant: It ranks as the most significant issue in the IT services industry and, perhaps,
of our time. A severe talent shortage is emerging on the horizon of developed countries like the United States and
in Europe, underscoring the importance of education to address it. The United States is slipping in global education
performance — especially in science, technology, engineering and math — the same fields vital for fulfilling many
critical jobs of tomorrow. We have developed a unique approach to The Future of Work and believe it will enhance
organizations’ productivity and competitive advantage while guiding them in building a more sustainable business.

We recognize we have work ahead of us. For example, we are committed to advancing a worldwide sustainable
supply chain. We are undertaking sustainability efforts globally and adapting them to local needs when necessary.

2010 is our baseline year from which we will measure our progress with the ESG indicators. We expect our
2011 report will demonstrate significant improvement in our Responsibility at Work.




Francisco D’Souza
CEO, Cognizant




                                                                                            Cognizant Technology Solutions   3
Letter
         from VP of Sustainability
         Mark Greenlaw




4   Cognizant Technology Solutions
While we have been a socially responsible company since our establishment in 1994, Cognizant
expects to be an even smarter and more responsive organization ahead. We will achieve this
goal by executing our sustainability strategy and measuring performance on the ESG indicators.

We established our sustainability office in 2010, and I was appointed to oversee it. As our former chief
information officer, I knew our business inside and out, and therefore, recognized the business value of
making sustainability a priority.


My office builds on Cognizant’s principles of integrity, service and expertise. It provides a framework for
pursuing the challenges and opportunities that sustainable business practices spark. It also helps address
our performance to meet global targets by guiding how we measure and evaluate the impact of what we
do. This process takes time, but a chief sustainability officer can help quicken that task and enhance its
importance within the organization.


IT services companies, such as ours, must move beyond a focus solely on green IT and into what I call Sustain-
able IT: using technology to address not only environmental but also social and governance issues. We are
striving to do this not only within Cognizant, but also by helping our customers use Sustainable IT practices.
As a “born global” technology consulting and services company — headquartered in Teaneck, New Jersey, and
with operations in North America, India, Europe, Asia, and Latin America — we are committed to becoming the
world’s most sustainable IT company. This is our chance to contribute something bigger — and when you get
that rare opportunity, you must seize it and make a responsible difference.




Mark Greenlaw
VP of Sustainability, Cognizant




                                                                                       Cognizant Technology Solutions   5
Organizational Profile
         In just 17 years, Cognizant Technology Solutions               technology innovation, deep industry and business-process
         Corp. has grown from a start up with 175 employees             expertise with a global, collaborative workforce that
         to a company with over $4.6 billion in annual rev-             embodies the future of work. Our clients increasingly turn
         enues and 104,000 associates worldwide in 2010.                to us as they look to distribute a broader range of services
                                                                        globally, while simultaneously addressing the secular and
         We have prospered — our revenues surged 40 percent in          technological shifts affecting their industries.
         2010 — because we combine a passion for client satisfaction,




6   Cognizant Technology Solutions
Cognizant is a leading provider of information technology,   At Cognizant, we embrace six cultural value drivers:
business process and strategic consulting services and is        • We are Open, providing an environment of open
publically traded on the NASDAQ (CTSH). Headquartered              doors and open minds.
in Teaneck, New Jersey (U.S.), we utilize a seamless glob-       • We are Transparent, our communications, whether
al sourcing model that combines technical and account              positive or negative, are always proactive, direct
management teams located on-site at the customer loca-             and honest, and we view transparency as critical
tion and at dedicated global development and delivery              to the health of our company.
centers located primarily in India, China, the United
                                                                 • We are Driven, with a “can do” approach focused
States, Canada, Argentina, Hungary and the Philippines.
                                                                   on delivering excellence at all times, and we
Our primary customers are Global 2000 companies and
                                                                   expect and reward personal and team initiative.
our business is organized around four vertically-oriented
                                                                 • We are Empowered, our associates have the
business segments: Financial Services; Healthcare; Manu-
                                                                   freedom to find the best way to meet a customer’s
facturing, Retail and Logistics; and other, which includes
                                                                   needs within the structure of our Code of Conduct.
Communication, Information, Media and Entertainment
and High Technology. We primarily serve the United               • We are Flexible, able to adapt in real time to each
States and Europe, although we are growing our pres-               new marketplace challenge.
ence in various international markets.                           • We are Collaborative, predicating the growth of individ-
                                                                   uals on their contributions to their team’s success
                                                                   in delivering exceptional customer experiences.

OUR DIRECT ECONOMIC VALUE
Below is a summary of our Consolidated Statements of Operations taken from our 2010 Annual Report.

                                                                                   Twelve Months Ending December 31
                                                                             (In thousands, except per share amounts)
                                                                                       2010                         2009

Revenues                                                                       $ 4,592,389                   $ 3,278,663

Operating expenses:

Cost of revenues (exclusive of depreciation and amortization
expense shown separately below)                                                    2,654,569                     1,849,443

Selling, general and administrative expenses                                        972,093                        721,359

Depreciation and amortization expense                                                103,875                        89,371

Income from operations                                                               861,852                      618,490

Total other income, net                                                               16,728                        18,461

Income before provision for income taxes                                            878,580                       636,951

Provision for income taxes                                                           145,040                       101,988

Net income                                                                     $ 733,540                     $ 534,963

Basic earnings per share                                                       $       2.44                  $        1.82

Diluted earnings per share                                                     $       2.37                  $        1.78




                                                                                                Cognizant Technology Solutions   7
Indeed, we believe our deep interest in the future of work
                                                                       — with its forces of globalization, virtualization, millennials
                                                                       and technology — puts us at the forefront of the new
                                                                       economy. It is changing the way in which businesses,
                                                                       consumers, employees and others relate to and interact
                                                                       with each other. It is also driving businesses to be more
                                                                       transparent and more accountable for the positive and
                                                                       negative impacts they have on society.

                                                                       In addition, we believe our intense commitment to education
                                                                       will help drive sustainable development across the world.
                                                                       We strive to help people gain the education necessary to
                                                                       participate in the global economy. Our support also under-
                                                                       lines the critical business case to meet the increasing
                                                                       demand for highly educated workers. At the same time,
                                                                       we recognize that improved education can bring more
                                                                       people out of poverty and give them the knowledge nec-
                                                                       essary to solve some of our world’s biggest social and
                                                                       environmental challenges.

                                                                       Further, we are an extremely well-managed company, with
                                                                       strong governance, ethics and a track record of providing
                                                                       rewarding careers to our associates. In addition to robust
                                                                       economic and social performance, we are working prag-
                                                                       matically to improve how we manage our environmental
                                                                       impact. We are committed to lead our industry in conserv-
                                                                       ing energy, reducing and disposing of waste, and recycling.
                                                                       Cognizant actively supports national and international
                                                                       climate-change policies, protocols and initiatives. Further,
                                                                       we proactively teach our associates best practices for
                                                                       conserving energy and shrinking individual carbon foot-
         A People-Intensive Company
                                                                       prints — all in an effort to operate in an environmentally
         We are a people-intensive company. In December 2010,
                                                                       friendly manner and drive sustainable economic growth.
         we hired our 100,000th associate, a milestone we are
         celebrating by planting 100,000 trees around the world        Through our 50-plus development centers on five continents,
         to support a healthier planet. We rank No. 68 on HR           we grow skilled labor markets and stimulate economies
         Executive magazine’s 2010 roster of the 100 largest U.S.-     in developing nations, particularly India, by helping more
         based non-government employers. As a result, we have a        than 700 clients worldwide grow their businesses and run
         significant and positive economic impact in terms of the      them efficiently and effectively.
         compensation we pay our employees. We also provide
         solid career opportunities with rapid advancement, primar-    On the hiring front, 83 percent of our senior managers
         ily because we have always focused on building a global       are local hires, meaning they live locally and are citizens
         team and accessing top talent from leading universities       or legally authorized to work within the country in which
         and the lateral market. We believe this emphasis on talent,   they are hired. While we do not have explicit procedures
         coupled with our unique global culture, rank among our        for local hiring, factors considered include skill availability
         key differentiators.                                          in the marketplace, migration regulations, geography,
                                                                       and local customs.




8   Cognizant Technology Solutions
While awards cannot truly measure a company’s contri-            • Top recruitment honors at leading business and
bution either to the corporate world or broader society, they      technology schools in India
can serve to reflect its commitment to responsibility and        • “Green IT company of the Year” by the IT & ITES
trust. Among the awards Cognizant received in 2010 were:           Industry Association of Andhra Pradesh

    • Forbes’ “Most Admired Companies” list for
      the second year in a row
                                                                PROPORTION OF SENIOR MANAGEMENT AND
    • Fortune’s 100 Supercharged Performers and                 ABOVE HIRED FROM THE LOCAL COMMUNITY
      All-Star List                                             (As of December 31, 2010)
    • Institutional Investor All–America Executive Team
                                                                Region                Local Hire %
    • First place in EquaTerra’s Performance and Client
      Satisfaction Rankings in Europe                           Asia–Pacific                   62%
    • Bloomberg BusinessWeek 50 Top Performing                  Europe                        69%
      Companies for third consecutive year                      India                         98%
    • Forbes’ “25 Fastest-Growing Technology Compa-
                                                                Americas                      72%
      nies in America” for the sixth year in a row
                                                                Total                         83%




                                                                                            Cognizant Technology Solutions   9
The Big
       Picture of Sustainability




10   Cognizant Technology Solutions
Strategically, corporate sustainability focuses on                   • Globalization: allowing companies to leverage
the management of social, economic and environ-                        expertise anywhere and everywhere it exists.
mental risk and the ultimate link to shareholder                     • Millennials: an ethnically and racially diverse
value. The Dow Jones Sustainability Indexes —                          generation of young adults whose oldest members
                                                                       have just hit 30 and whose mindset is revamping
the first global indexes tracking the financial
                                                                       everything from communication to innovation out
performance of the leading sustainability-driven
                                                                       side and inside the organization.
companies worldwide — define sustainability as
                                                                     • Virtualization: the new way to work that enables
a business approach, not peripheral activities.
                                                                       real-time teamwork between project members
Corporate sustainability seeks to create long-term share-              regardless of time or place.
holder value, not make a quick profit. It embraces oppor-            • Technology: the new ideas that include the Cloud,
tunities with the public agenda, which alone generates new             mobility, social tools and predictive analysis that
business possibilities that encompass more than energy                 are creating transformative new business processes.
efficiency and accessibility. It builds a business that is not
                                                                 They may be changing the nature of business and IT, but
only successful today, but is prepared for the business
                                                                 do these forces impact sustainability? Definitely.
demands of tomorrow.
                                                                 Globalization Unites Us
Reflecting what we do and our need for top talent to do
                                                                 Globalization levels the economic playing field. It unites
it, we at Cognizant concluded that our own sustainability
                                                                 people from different nations and cultures as partners or
efforts should concentrate on the dynamic changes shap-
                                                                 co-workers to solve business and social problems. It fosters
ing the future. They demand our ardent attention, not
                                                                 new understanding and appreciates different cultures
only for our success but for that of our clients. Forging
                                                                 and their associated social issues. As a result, our planet
this strategic view has been a white paper entitled “The
                                                                 seems a little smaller and offers the sense of a broader
Future of Work,” written by Cognizant Senior VP Malcolm
                                                                 commitment to all people on the planet, both environ-
Frank and TCG Advisors Managing Director Geoffrey Moore
                                                                 mentally and socially.
(see www.cognizant.com/FoW-New-Approach). Frank and
Moore identified four powerful forces shaping the Future         Millennials, who are 60 million strong, want corporations to
of Work and also the levers available to enterprises to en-      demonstrate responsible, authentic and transparent behav-
gage them. They translated these strategies into action.         ior. This sentiment is shared by staff of all generations:
                                                                 nearly 90 percent of employees say they are more likely
The forces shaping the Future of Work — influences that,
                                                                 to work for an ethically and socially responsible company,
fundamentally, are changing the nature of business and
                                                                 says a 2010 article in Staffing Industry Review magazine.
IT, are:




                                                                                                   Cognizant Technology Solutions   11
local reach:
      Year Up Workforce–
      Development Program

      RAMALO SINGH
      Coordinator, Network & System Services




         Since Cognizant’s own sustainability depends on its 100,000-plus knowledge workers, education
         ranks as its most critical sustainability issue. That’s why the firm is focusing its sustainability
         platform on initiatives geared toward educating and developing tomorrow’s knowledge workers
         — like Ramalo Singh, a 21-year-old college student from Queens, N.Y.

         Ramalo, a native of Guyana, is finishing his degree but, thanks to an innovative workplace-
         development program, called Year Up, also has nearly a year of experience at Cognizant. Year
         Up provides Ramalo and other young adults from underserved neighborhoods six months of
         technical and professional education and real-world training and opportunities in IT or investment
         operations. All of its qualified students gain internships and 84 percent land full or part-time jobs.

         Cognizant has benefited from hiring Year Up graduates. “It just made sense to us,” explains
         Mark Greenlaw, Cognizant’s VP of sustainability & educational affairs. “Engaging in Year Up
         underscores our responsibility as a company to ensure there’s a pipeline of talented recruits like
         Ramalo. The program is good for society and it’s just good business.”

         Ramalo is also thankful. After studying computer repair at Thomas Edison High School with
         aspirations for higher education, he was unable to afford college. He worked at a supermarket
         until a cousin who had participated in the Year Up program encouraged Ramalo to apply. He was
         accepted into a curriculum of technical-skills training and lessons in professionalism. After his
         internship at Cognizant, he was hired full-time at our Teaneck headquarters.

         “It was a great fit,” Ramalo says. “Almost everything I learned translated into what I do today at
         Cognizant. I feel very fortunate to have had this opportunity.”




12   Cognizant Technology Solutions
As customers, Millennials want transparency and informa-        ability to provide virtual volunteer opportunities, allow-
tion about the products and services a company offers so        ing them to tap into a much broader volunteer base.
they can understand how they impact society and the envi-
                                                                Technology, such as Cloud, social and mobile computing,
ronment. As employees, they have a greater expectation
                                                                also have a profound impact on both companies and NGOs
of work-life balance, desire fair and rewarding workplaces,
                                                                by promoting greater internal and external collaboration,
and strive to find meaning and purpose in their work.
                                                                more efficient business models and rich communications
The virtualization of the organization enables businesses       between organizations and their stakeholders. Through
and non-governmental organizations (NGOs) to tap into           technology, customers and employees are having conver-
talent and capital wherever it exists worldwide. With virtual   sations, aided by social and mobile platforms. This drives
organization models, work becomes an activity rather            greater transparency between businesses, customers and
than a physical place, and employees can contribute from        other stakeholders. In addition, Cloud, and social and mobile
wherever they reside, reducing the need to commute long         platforms are delivering new tools to engage and share
distances, cutting energy consumption, and improving            collective knowledge with stakeholders and enlisting them
work-life balance. This phenomenon also gives NGOs the          to address environmental and social issues.




FUTURE OF WORK FORCES AND SUSTAINABILITY




              >> GLOBALIZATION                                      >> MILLENNIAL
              Allowing companies to leverage                       An ethnically and racially diverse
              expertise anywhere and everywhere                    generation of young adults whose
              it exists.                                           oldest members have just hit 30 and
                                                                   whose mindset is revamping everything
                                                                   from communication to innovation
                                                                   outside and inside the organization.




              >> VIRTUALIZATION                                     >> TECHNOLOGY
              The new way to work that enables                     The new ideas that include
              real–time teamwork between project                   the Cloud, mobility, social tools
              members regardless of time or place.                 and predictive analysis that are
                                                                   creating transformative new
                                                                   business processes.




                                                                                                  Cognizant Technology Solutions   13
Sustainability
        at Cognizant




14   Cognizant Technology Solutions
At Cognizant, we view sustainability broadly; it not only encompasses environmental
sustainability, but also social and economic sustainability. Our deep commitment
to a sustainable business can be best viewed by examining five major themes:
commitment to customers; educating for the future; governance and ethics; stewards
of the environment; and responsibility at work.




                                                                                Cognizant Technology Solutions   15
Commitment
         to Customers




16   Cognizant Technology Solutions
As a highly customer-centric company, we consider cus-        quantitative and qualitative methodologies. Customers
tomer satisfaction to be our primary value discipline.        within client organizations are nominated for inclusion
Placing our customers first is embedded in our culture,       in the study and vetted by the client organizations. A
and we put that commitment to the test.                       minimum of 40 percent of the nominees participate in
                                                              the quantitative portion. Since customer satisfaction is
EquaTerra, a provider of IT advisory services, recently
                                                              one measure of an organization’s sensitivity to its cus-
ranked us No. 1 in Europe for customer satisfaction. In our
                                                              tomers’ needs, from an organizational perspective, it is
most recent annual customer-satisfaction survey, and for
                                                              essential for long-term success.
the fourth year in a row, more than 90 percent of our
clients expressed a high degree of satisfaction, and that’s   Customer Satisfaction Provides Insights
considered extraordinary in our industry. Very simply, we     In the context of sustainability, customer satisfaction
rarely lose a customer. Each of our business units devel-     provides insight into how the organization approaches its
ops an action plan to address issues that may rise with its   relationship with one stakeholder group, its customers. It
scores on customer-satisfaction surveys.                      also can be used in combination with other sustainability
                                                              measures. Customer satisfaction can provide insights
With our client-first mindset, we place a senior partner
                                                              into the degree to which an organization considers the
onsite with a client team to ensure flawless alignment.
                                                              needs of other stakeholders. Results: Our clients tell us
This Client Partner is the team’s leader and by working
                                                              that we truly excel at partnering closely. Our clients tell
onsite, absorbs a client’s culture, operational processes,
                                                              us that we take extraordinary lengths to solve problems,
challenges and business goals. The Client Partner, who
                                                              or just help out. Our associates take a “can-do” attitude,
often has an advanced degree and at least a decade
                                                              finding flexibility beyond the contractual terms of our
of experience, pairs with a senior Cognizant Delivery
                                                              partnership.
Manager as part of what we term our “two-in-a-box” client-
engagement model. This approach lets us provide superior      Our customers entrust us not only to solve some of their
service to help each customer reduce IT operational costs,    more pressing business and technology problems, but
embrace best practices and undergo sustainable busi-          they also grant us access to their sensitive and private
ness transformation.                                          data and information. To ensure that we protect this in-
                                                              formation, Cognizant has appropriate operational and
We Offer Deep Experience
                                                              technological processes and procedures designed to
Many of our senior people originate from the businesses
                                                              safeguard against unauthorized access, loss, destruction,
we serve, so we are able to offer deep experience across
                                                              theft, use or disclosure of data. In 2010, we had no incidents
nearly all major industries. Our advanced technology
                                                              of breaches of customer privacy or loss of customer data.
also helps us serve clients better. Built on the latest Web
                                                              We take extraordinary care to ensure the security of our
2.0 technologies, our new Cognizant 2.0 global delivery
                                                              data and information. We house our servers in secure
platform lets our associates, business partners and clients
                                                              data centers and use a wide range of industry leading
worldwide work as one. This fosters sharing of experi-
                                                              tools for scrambling test data provided by clients, as well
ence and insights, and collaborating more in real time to
                                                              as sanitizing and shredding files on old computers we re-
achieve superior results.
                                                              deploy. We also use an extensive set of filtering and data
We also want regular client feedback. Every year, we          loss-prevention tools to ensure that sensitive informa-
conduct a customer-satisfaction study, employing both         tion does not leave our network without authorization.




                                                                                                Cognizant Technology Solutions   17
Educating
         for the Future




18   Cognizant Technology Solutions
The new knowledge worker is defining the Future                cent of those students study beyond grade 8; the rest
of Work — but where will we find them and can we               drop out at various stages. School capacity in the coun-
educate enough of them? These concerns explain                try is heavily skewed towards primary- and middle-level
why education is so important to Cognizant. Tomor-            education. Only 13 percent of schools provide secondary-
                                                              and higher-level education. In order to provide universal
row’s knowledge workers will have a significant
                                                              school education by 2015, India will need another
impact on sustainability. In today’s workforce,
                                                              250,000 schools. Most of these schools will have to be
knowledge workers are critical for their ability to
                                                              set up through private investment.
handle information and data for clients.
                                                              U.S. Education Crisis
These workers will play a crucial role in solving the
                                                              Meanwhile, in the U.S., despite billions of dollars spent on
world’s most pressing social and environmental problems
                                                              education reform, students continue to fall behind other
— from climate change and health issues to water and
                                                              nations in the key disciplines necessary for tomorrow’s
food shortages and cities of the future. The need for
                                                              workforce. Among global developed nations, for instance,
highly educated talent for our company and our custom-
                                                              the U.S. ranks 15th in reading, 23rd in science and 31st in
ers’ businesses grows, but significant shortages of these
                                                              mathematics. Just one-in-three eighth graders were rat-
workers have emerged in the U.S. and Europe.
                                                              ed proficient or higher in a national math test, and more
Talent Shortage Exists                                        than one in four scored below the basic level.
We are much more aware of this scarcity because of our
                                                              We also are feeling the economic and business effects of
born-global DNA — a U.S.-based company with roots in
                                                              too few U.S.-based graduates in STEM fields — science,
India — and world view on how education has driven social
                                                              technology, engineering and math. While the number of
and economic transformation. India’s focus on education,
                                                              degrees awarded in the STEM fields has edged up over the
for instance, enabled the creation of a dynamic IT industry
                                                              past five years, only 15.6 percent of bachelor’s degrees
that continues to fuel economic growth and lift millions
                                                              were awarded in these fields, and the overall share of
out of poverty. More than 3,800 business schools in India
                                                              such degrees shrank during the same period. Meanwhile
offer two-year MBA or equivalent programs, and they
                                                              China awarded nearly half (47 percent) of its undergrad-
are awarding more than 100,000 management degrees
                                                              uate university degrees in STEM fields; South Korea
annually. India also is producing 437,000 four-year degree
                                                              awarded 38 percent; and Germany, 28 percent.
engineering graduates each year, compared to 85,000 in
the U.S.                                                      By 2018, according to a Center on Education and the
                                                              Workforce report, job openings in STEM-related fields will
However, there are serious challenges within the public
                                                              number eight million, although the next generation of
education system in India. Only 230 of the 360 million
                                                              U.S. workers will be unprepared and under-qualified to
school-age children are enrolled in school. Only 53 per
                                                              take advantage of many of those positions.




                                                                                               Cognizant Technology Solutions   19
Helping the Comprehensive Learning Center
        Individuals with autism spectrum disorders often need highly individualized help, and that’s
        what The Comprehensive Learning Center (CLC) does for 3-year-olds up through adults. Success
        of CLC’s program relates directly to the ongoing support of its sister organization, The AJ
        Foundation for Children with Autism. The AJ Foundation conducts fundraising activities to offset
        the deficit between funding provided and the actual costs of providing services.

        In October 2010, 25 members of the Cognizant Outreach Team in the U.S. Mid–Atlantic states,
        along with many of its offshore colleagues, helped the AJ Foundation with its 3rd annual AJF50
        Bike Ride for Autism. In the previous two years, registrations for the event were handled manually.
        In addition, it was difficult to encourage riders to solicit financial support from family and friends.

        A software-development team from Cognizant’s offshore locations in India came to the rescue,
        volunteering time to develop a website that facilitated online registrations and donations,
        specifically by allowing riders to solicit outside donations through the website. As a result,
        donations more than doubled those received in 2009. The website’s functionality was truly the
        difference that made the 2010 AJF50 Bike Ride for Autism a great success. As for Cognizant
        Outreach, it’s an example of the global approach we take to the sustainability of quality education
        in the communities where we serve.




20   Cognizant Technology Solutions
Cognizant has a unique volunteer led program called               Outreach in Bangalore has collaborated with a training
Outreach to promote the cause of education through a              institute, Peoplepro, to introduce life skills-based learn-
combination of voluntary efforts of associates and admin-         ing modules to the classroom curriculum, and in Pune, in
istrative and financial support from the company. In India,        association with the NGO Akshar Bharathi, 12 libraries were
for instance, more than 8,000 of our associates volunteered       established to help rural schoolchildren gain access to
in 2010, primarily with underprivileged children in the           quality books and educational materials. The Life Sciences
public schools, positively impacting an estimated 130,000         Outreach council partnered with another NGO, Give Life,
lives. Since it was launched in 2007, Outreach has made           to provide holistic education and nourishment to 300
a deep and very-lasting impact in the communities we              orphan and single parent children. In January 2010, 400
operate in. More than 9000 Cognizant associates have              associates reached out to about 7,500 students by organiz-
participated in over 1000 community service projects              ing more than 50 science-related events.
and events and have reached out to 300,000 children.
                                                                  For its part, Cognizant contributes about $10 million annu-
Outreach works with 116 schools and 26 other institutions         ally to education and infrastructure investments across
such as orphanages and juvenile homes in six Indian states,       the globe.
and it also has established a presence in China, the United
                                                                  What effect do these Cognizant Outreach programs have
States, the United Kingdom, Argentina and the Philippines.
                                                                  on associates? “Both new employees and those who have
From setting up computer labs to refurbishing class-
                                                                  been here many years have said that they feel really proud
rooms and science labs, Outreach in small ways makes a
                                                                  to be part of Cognizant because of the Outreach program
huge difference. Volunteers also teach in select subjects
                                                                  and the incredible difference it is making to the lives of
and offer life skills and leadership training for the students,
                                                                  underprivileged children,” says Archana Raghuram (pic-
among other engagements with the schools.
                                                                  tured below), the program’s manager.
Making A Lasting Difference
Outreach goes beyond funding and illuminates the spirit
of volunteerism and the chance for our associates to make
a lasting difference. TalHunt, an interschool competition,
is a flagship initiative of Outreach begun in 2008 to provide
a platform for young minds to showcase their talents.
Over the past 3 years, TalHunt has created a first time
opportunity for 30,000 students from 60 schools to
showcase their creative capabilities. 2,700 Cognizant asso-
ciates volunteered to train the students in dance, music,
painting, and Chess. Winning schools receive financial aid
to help improve their facilities.

Our associates also have contributed to campaigns to
fund children’s notebooks. In the past three years, 360,000
notebooks have been distributed to 53,000 students in
115 schools. Over 28,000 Cognizant associates contrib-
uted more than $130,000 to make this possible. Outreach
also has partnered with NGOs, such as Junior Achievement,
to work for children in the education sector. Over 700
associates have participated in Junior Achievement activi-
ties, helping nearly 23,000 students think about and make
a career choice from a world of opportunities.




                                                                                                  Cognizant Technology Solutions   21
In the United States, Cognizant is a member of Change the     Our desire to contribute to STEM educational advance-
        Equation, a new initiative led by more than 100 CEOs who      ment goes beyond simply contributing cash gifts. Among
        collectively pledged more than $5 million in first-year        other endeavors, we and our associates have donated more
        funding to improve awareness and effectiveness in STEM        than 3,000 books to middle-school children in several
        education. Our CEO, Francisco D’Souza, attended the White     states as part of the Sally Ride Book Donations program;
        House launch of the initiative on September 16, 2010.         begun a Junior Achievement pilot program in six schools
        Among other things, Change the Equation has begun advo-       in Chicago, Illinois and Hartford, Connecticut; and part-
        cating greater participation by the corporate community in    nered with the School for Autism to record books for the
        numerous programs that utilize the STEM disciplines to        blind and dyslexic.
        fuel youth creativity, improve professional development for
                                                                      In 2010, we began a comprehensive review of ways we can
        teachers, and increase student participation and success in
                                                                      better engage in advancing STEM education, and in 2011,
        Advanced Placement math and science courses.
                                                                      we will launch a substantial nationwide program to inspire
        We also are a national corporate underwriter for NPower,      young learners to explore and develop STEM-related skills
        a nonprofit organization that brings IT services to other      necessary for the 21st century. We are committed to raising
        nonprofits and training to young adults, with its workforce-   student performance in STEM disciplines and encour-
        development program that helps disconnected young             aging more students to pursue STEM higher education
        adults find IT careers. One of our senior vice presidents,     and careers.
        Prasad Chintamaneni, recently joined NPower’s board. We
        also support the New York Hall of Science, where Francisco
        also serves on its board.


                                                                                        COGNIZANT IS A MEMBER OF

                                                                                        CHANGE THE
                                                                                        EQUATION,
                                                                                        A NEW INITIATIVE
                                                                                        LED BY MORE THAN
                                                                                        100 CEOS
                                                                                        WHO COLLECTIVELY
                                                                                        PLEDGED MORE THAN
                                                                                        $
                                                                                           5 MILLION
                                                                                        IN FIRST–YEAR FUNDING
                                                                                        TO IMPROVE AWARENESS
                                                                                        AND EFFECTIVENESS IN
                                                                                        STEM EDUCATION.



22   Cognizant Technology Solutions
Quenching Students’ Thirst for More than Education
Bala Prasad, a Cognizant associate, graduated from A.P.S.W.R. Hr. Secondary School in Uppalwai, India,
located in a remote part of Andhra Pradesh state. As a student, Bala and his classmates walked two
kilometers to carry drinking water back to the school.

After joining Cognizant, Bala learned about the “You can help a school” program, an initiative launched
through Cognizant’s Project Outreach. The program empowers associates to nominate deserving rural
schools to receive Outreach-sponsored infrastructure improvements, such as new libraries.

Bala submitted a proposal to establish a reverse osmosis water plant for his former school and today,
the plant provides clean drinking water to its 500 students. Bala is glad that students no longer must go
through the arduous trek he did just for a glass of drinking water. The system also enables students to
better focus on education priorities.

In 2010 Cognizant’s “You can help a school” initiative was piloted in Pune and Hyderabad and has since
received more than 80 referrals.




                                                                                  Cognizant Technology Solutions   23
Governance
        and Ethics




24   Cognizant Technology Solutions
We take our governance responsibilities very                       • Instill trust and confidence in the minds of our
seriously at Cognizant and have gained a strong                      associates, customers, shareholders, vendors and
reputation as an ethical company with strong gov-                    other stakeholders.
ernance policies and practices. Indeed, strong ethics,         The Code contains our policies and procedures on myriad
transparency and openness ground our values.                   issues that apply to honesty and integrity. They include
                                                               the acceptable use of Cognizant and client assets; accu-
As our CEO emphasizes in our Code of Ethics, “Our win-
                                                               racy of books, records and public reports; competing
ning mentality isn’t just about doing great things. It’s
                                                               honestly and fairly in the marketplace; compliance with
about doing great things the right way. That’s how we
                                                               laws, rules and regulations; confidential information and
continue to build trust with our customers and protect
                                                               intellectual property protection; conflicts of interest; gifts
the valuable asset that is Cognizant.”
                                                               and gratuities; insider trading; media, analyst and investor
We have not had any major negative incidents occur in this     communications; political activities; respectful treatment
area. We have developed a software product — Governance-       of associates, customers and business partners; and respon-
in-a-Box — that delivers a structured approach to gover-       sible use of social networking.
nance and compliance, and reduces risks for our clients.
                                                               The Code also serves as an aid to associates and managers
To us, business ethics comprise rules of conduct and ethical   when making decisions. It contains industry-specific exam-
principles applied in the workplace. They go to the heart      ples, frequently asked questions, key contacts and links
of our integrity — our honesty, accountability, fairness       to internal policies, among other things. All associates are
and transparency — and this is absolutely critical to us. We   required to complete annual ethics training and vice
believe in providing a positive work environment that is       presidents and above must certify their compliance with
fair, safe, rewarding, enjoyable and fuels high productivity   the Code’s provisions annually. In 2010, 91 percent of our
in service to our clients. We consider ethical behavior the    employees received training on ethics, for a total of
cornerstone of our long–term business success.                 37,244 hours. Additionally, our Enterprise Risk Management
                                                               group conducts annual risk analysis surveys covering all
We live by a Code of Ethics that reaffirms our core values
                                                               business units and corporate functions to assess the like-
and standards of conduct that is designed to:
                                                               lihood of various risks including corruption.
     • Communicate the basic principles of policies,
       business ethics and legal requirements.                 Rigorous Controls
     • Protect Cognizant’s reputation and ensure that all      Like all U.S.-based corporations, Cognizant is subject to
       associates understand the rules of the game.            the Sarbanes-Oxley Act of 2002, which covers financial
     • Assist in making decisions to make sure our             disclosure and addresses controls over financial report-
       business is conducted with integrity and honesty        ing, audit committees, external auditors, codes of ethics,
       as well as in accordance with legal requirements.       whistleblower protection and attorney conduct. Since it




                                                                                                Cognizant Technology Solutions   25
Three recent Cognizant U.S. Campus Program
                                                                    hires joined in ringing the NASDAQ opening bell on
                                                                    the first trading day of 2011 on January 3. Pictured
                                                                    are Charles Esipila and Jennifer Mosquera, both
                                                                    of Pennsylvania State University, and Vishal Ramani
                                                                    of Purdue University.




        went into effect, we have complied with all of Sarbanes-        Compliance Resources
        Oxley’s provisions and have never reported a “material          Our dedicated compliance resources include our general
        weakness” in controls over financial reporting. Our com-         counsel, compliance director and chief security officer.
        pliance is tested independently by our external auditors.       They ensure that management and associates comply
        Additionally, we have had no legal actions for anticom-         with all internal policies and external laws and regulations.
        petitive behavior, anti–trust, or monopoly practices. Nor       As for professional guidance, we retain both outside legal
        have we had any significant claims against us regarding          counsel and independent accountants to ensure that good
        the use of our products or services.                            governance practices and regulations are followed. We
                                                                        might consult with these professionals regarding board
        Our board of directors includes an independent, non-
                                                                        approval of acquisitions and related-party transactions;
        executive chairman and six of our eight directors are
                                                                        complete and accurate disclosures in public filings such
        “independent” under rules of the NASDAQ, where Cognizant
                                                                        as our annual report; and the performance of annual audits
        is listed. Directors are required to complete an extensive
                                                                        of our financial statements.
        annual survey to guard against conflicts of interest that
        could interfere with the exercise of independent judg-          Our internal audit capabilities include audit teams in the
        ment. We also have had great continuity with our board,         United States, India and the United Kingdom/Europe. They
        with four independent directors serving at least 10 years       have direct access to the board’s audit committee and
        and the other two independents serving two years and            their scope is set annually based upon risk assessments,
        four years, respectively.                                       e.g., finance, compliance and security. The internal audit
                                                                        teams perform reviews of Sarbanes-Oxley section 404;
        Our audit committee, whose members are in regular
                                                                        compliance with laws and regulations, such as immigration
        communications with the chief financial officer (CFO),
                                                                        statutes; control reviews at entities that are not covered
        controller, general counsel, and heads of compliance and
                                                                        by Sarbanes-Oxley; compliance with internal policies that
        internal audit, consists of four independent directors, one
                                                                        cover banking, travel and expenses; accounting processes;
        of whom serves as chairman and who is an audit commit-
                                                                        and payroll.
        tee financial expert, having served as CFO at Paine Webber
        and Pan American Airways. Our nominating and corporate          Cognizant has established a stringent policy covering
        governance committee develops and recommends cor-               insider trading and black-out periods for stock transac-
        porate governance policies and oversees the evaluation          tions. This policy is designed to prevent the occurrence or
        of the board’s effectiveness.                                   appearance of improper trading in our stock by associ-
                                                                        ates and directors. It assures shareholders, analysts and
        We have a whistleblower hotline, called the Compliance
                                                                        others that the market for our stock is a fair one and not
        Helpline, which serves as a vehicle for employees, clients,
                                                                        influenced improperly by those that may possess non-
        vendors and others to report concerns anonymously about
                                                                        public information. The black-out period that covers all
        ethical behavior. Complaints are routed jointly to the com-
                                                                        associates extends from 15 days before each quarter ends
        pliance director and general counsel with a detailed account
                                                                        to the third business day after we release earnings.
        of all reported incidents sent monthly to the audit committee
        chairman and to executive management.




26   Cognizant Technology Solutions
We Survey Associates Annually                                   exchange for an internal service. While the monetary
We offer exit interviews to all terminated associates and       amount was insignificant, the contractor responsible was
the results of those interviews are communicated to the         terminated and additional screening procedures were
compliance director and the general counsel if they con-        put in place for contractors in India.
tain allegations of fraud or unethical conduct. In addition,
                                                                We are in the process of writing a Sustainable Procurement
we conduct an annual survey of associates to monitor
                                                                Policy, which will be published in the coming year. We ex-
their satisfaction levels and solicit feedback on leadership,
                                                                pect this policy will include a supplier survey which will
management and other concerns, including on ethics and
                                                                draw from the GRI G3 guidelines. We are also working with
business conduct. An outside party tabulates the survey
                                                                our procurement team to embed corporate responsibility
results and they are reviewed annually by management
                                                                clauses into our contracts. The supplier survey will be one
to determine if any actions need to be taken.
                                                                mechanism to ensure these clauses are followed.
We are striving to ensure that the vendors within our
                                                                As for political activities, we encourage participation in the
supply chain employ the highest ethical standards within
                                                                political process on an individual basis and not on behalf
their own business and we investigate and respond to
                                                                of the company. Regarding policy advocacy activities, our
any allegation of bribery or corruption. In January 2010,
                                                                associates are prohibited from lobbying the government
we received a single substantiated report of bribery in
                                                                or other policy-making organizations on Cognizant’s behalf




                                                                                                  Cognizant Technology Solutions   27
unless it is explicitly part of their job to do so. Those en-     gain access to the skilled talent Cognizant needs to compete
        gaged in policy advocacy on behalf of Cognizant comply            and innovate.
        with all applicable laws, rules and regulations, and our
                                                                          Education. Building on our Public Outreach, Cognizant
        Standards of Business Conduct.
                                                                          participates in broad-based industry associations and co-
        Public Policy Advocacy                                            alitions to support policy initiatives geared to increase
        In terms of public policy, a wide range of policies are in        curriculum quality and student participation in math and
        place or are being considered by governmental bodies in           science fields.
        capitals from Washington to London to Delhi that can and
                                                                          Tax. Tax laws have a substantial impact on capital invest-
        do have a material impact on our business. We consider
                                                                          ment and economic development. We advocate for tax
        policy advocacy on issues of importance to our business,
                                                                          policies that facilitate innovation, improve competitiveness,
        customers, employees, shareholders and industry an es-
                                                                          and fuel investment and job creation.
        sential component of our strategic planning. We work to
        ensure that our public policy positions complement or             Market Access. Trade agreements that reduce barriers
        advance our global sustainability and citizenship objectives.     and improve access to new markets are vital for improved
                                                                          commerce and collaboration for Cognizant, our partners
        Fundamentally, Cognizant’s public policy objectives are
                                                                          and our customers. We advocate for bilateral, regional
        focused on issues that we consider essential to advancing
                                                                          and worldwide trade agreements that facilitate trade in
        innovation, competitiveness, job creation, economic growth
                                                                          services, enable temporary migration of skilled profes-
        and sustainable standards of living. Our policy agenda is
                                                                          sionals, increase protections on intellectual property, and
        centered on workforce development, education, tax, mar-
                                                                          allow for greater regulatory transparency.
        ket access and information privacy and security.
                                                                          Information Privacy/Security. Today’s technology infra-
        Workforce Development. Cognizant’s success depends
                                                                          structure facilitates global commerce and communication,
        significantly on recruiting, hiring and retaining highly skilled
                                                                          drives the creation of new consumer products and services,
        professionals. Cognizant and its customers face near and
                                                                          and provides a foundation for governments to better
        long-term skills gaps in developed countries, which neces-
                                                                          serve its citizens. To protect this infrastructure, which is
        sitate workforce development and migration policies to
                                                                          mostly owned and managed by the private sector, govern-
                                                                          ments work with private entities to protect their citizens
                                                                          from cyber attacks and data breaches. We support policies
                                                                          that improve cyber-security through effective informa-
                                                                          tion management and technological innovation.

                                                                          Cognizant also recognizes the critical importance of fun-
                                                                          damental human rights such as the prohibition of child
                                                                          labor and forced labor. Cognizant does not use child or
                                                                          forced labor in any of our operations. As a technology ser-
                                                                          vices company, such issues are not a significant risk factor
                                                                          in our business operations. In our daily operations, we
                                                                          adhere to all International Labor Organization standards
                                                                          and are studying our supply-chain policies and procedures
                                                                          to ensure that all our suppliers conform to the same high
                                                                          standards as we do.




28   Cognizant Technology Solutions
Cognizant Technology Solutions   29
Stewards
        of the Environment




30   Cognizant Technology Solutions
We believe protecting the planet is everyone’s                Our two-and-a-half-year-old Go Green program drives our
business. Cognizant stands committed to leading               environmental initiatives, led by our Chennai, India-based
our industry in energy conservation, waste reduction          director of sustainability, Premkumar Pandurangam. The
and disposal, and recycling. We have established a            program currently targets carbon emissions, energy and
                                                              paper use, and will soon include waste, hazardous materi-
greenhouse gas policy that is reducing emissions
                                                              als and water use.
across our global delivery network.
                                                              Go Green has engaged many associates in environmental
We follow industry best practices and statutory require-
                                                              programs, using a sophisticated approach to organizational
ments aimed at protecting the world’s environmental
                                                              change-management practices to engage associates in
health. We also actively support national and international
                                                              the discussion.
climate-change policies, protocols and initiatives, such as
the Carbon Disclosure Project and the former U.S. Environ-    With Cognizant Go Green, we have set and met mile-
mental Protection Agency (EPA) Climate Leaders program.       stones that include:
                                                                  • Reduced per capita carbon emissions by
In addition, we are proactively working with our employees
                                                                    28% since 2008.
to put into effect best practices for conserving energy
                                                                  • Reduced per capita energy consumption by
and shrinking individual carbon footprints. Collectively,
                                                                    29% since 2008.
these measures ensure that we operate in an environ-
                                                                  • Constructed three new green campuses to
mentally friendly manner and drive sustainable economic
                                                                    environmentally friendly building standards
growth. We are proud that on the Newsweek Green Rank-
                                                                    that won LEED® Gold rated awards.
ings, Cognizant moved to No. 138 in 2010, up from No. 449
                                                                  • Deployed PC power management to 50,000
the previous year. Within the tech industry list, Cognizant
                                                                    desktop computers, saving thousands of tons
moved to No. 25 from No. 49, and we continue to lead that
                                                                    of carbon dioxide.
group in terms of our environmental impact, which re-
                                                                  • Instituted double-sided printing, print quotas and
flects our low per-capita emissions.
                                                                    power-saving modes on our printers across India.
Managing Our Environmental Impact                                 • Reduced paper consumption by 2.2 million
With more than 100,000 associates and numerous data                 pages a year.
centers worldwide, we work to better manage our offices’
                                                              To help reduce our energy and carbon footprint, we imple-
environmental impact. In our employee centers in India
                                                              mented a Six Sigma building energy-optimization project
and around the world, we work to increase the efficiency
                                                              in order to benchmark the energy efficiency of all of our
of our office air conditioning, desktop computers, light-
                                                              large development facilities. Our goal was to reduce our
ing, heating, and electronics.
                                                              India power consumption to 1.8 kWh/sqft/month in 18




                                                                                              Cognizant Technology Solutions   31
global reach:
     ‘Go Green Anthem’
     Inspires Environmental
     Action
     PREMKUMAR PANDURANGAM
     Director of Sustainability




         A stirring rock song can inspire listeners to a cause. Cognizant associates have their “Go Green”
         anthem to spark environmental initiatives. Written by the Cognizant Pune rock band, Harmonic
         Recession, it helps the company spread a message of the “individual’s responsibility towards the
         environment” across its global offices.

         Fresh and young in spirit, the “Go Green” anthem encourages people to recognize the planet’s
         environmental realities. It also adds practical suggestions for associates to follow in their daily
         lives. The song was played in all company offices to a rousing response. It now is played at every
         Go Green occasion so associates are quickly mastering the lyrics, which include:

                  In rhythm and rhyme, this is our time, let’s join our hands, here’s what we say:
                  Let’s start a movement the world has never seen.
                  Go Green! Go Green! Go Green!”

         This initiative and the larger Go Green program are managed by Director of Sustainability
         Premkumar Pandurangam. Prem, pictured above, leads Cognizant’s efforts to track and reduce
         its Greenhouse Gas emissions, water consumption and waste. Along with his team, he works
         to enlist all 100,000+ Cognizant Associates to do their part to reduce their personal impact on
         the environment through communications, education, events, competitions and other forms of
         employee engagement and recognition.




32   Cognizant Technology Solutions
months, down from 2.1 kWh/sqft/month. We identified best         In addition to Cognizant’s major efforts to improve
practices used in Cognizant’s most efficient facilities and      building energy efficiency, we acknowledge that, as a
have rolled them out to other facilities, driving significant    busy global company, travel is a major part of our envi-
energy efficiency improvements.                                  ronmental footprint. We have placed a significant corpo-
                                                                rate emphasis on video conferencing and telepresence
The energy-optimization project covered all aspects of
                                                                facilities, using this technology to reduce travel to meet-
our infrastructure — office space, utilities, desktop hard-
                                                                ings and other business-related sessions. To date, with
ware, and data centers. Our process was determined and
                                                                environmental impact in mind, we have deployed more
replicable: we identified operational levers to optimize
                                                                than 500 telepresence and high-definition video units,
energy usage and reduce waste. We formed small teams
                                                                reduced our air travel and, in the process, improved our
focused on key energy consuming equipment and ran Six
                                                                associates’ work-life balance and our collaboration with
Sigma Green Belt Projects for HVAC-Chillers, HVAC-Air
                                                                customers. The telepresence project was so successful
Handling Units, Uninterruptable Power Supplies, Lighting
                                                                that we documented it in a white paper and video available
and Generators.
                                                                at www.cognizant.com/Telepresence-whitepaper and
This project also addressed IT infrastructure, focusing on      www.cognizant.com/Telepresence-video.
desktop hardware (triggering sleep-mode in non-working
                                                                The Impact of Climate Change
hours), server hardware (using virtual servers instead of
                                                                At Cognizant, we take climate change very seriously.
physical servers for new projects) and data centers (con-
                                                                Climate change may pose operational risk to our facili-
solidating data centers). Through these efforts, over the
                                                                ties located in coastal cities around the world. It could
last two years we have achieved 20 percent reduction in
                                                                also cause disruptions to our operations if severe weather
per square-foot and 29 percent reduction in per capita
                                                                caused by climate change impacts goods and services in
energy consumption.
                                                                our supply chain. An escalation of electricity and transpor-
In Cognizant’s annual Carbon Disclosure Project declara-        tation costs with fluctuations in the price of hydrocarbon
tion, we reported a 7 percent per capita reduction in           could also impact our business.
2010, achieved through our Go Green program’s focus on
                                                                Climate change has provided us an opportunity to reas-
several energy-reduction initiatives. As a member of the
                                                                sess our energy dependence and energy productivity. We
former U.S. EPA Climate Leaders program, we set a 25
                                                                identified opportunities to conserve energy and improve
percent per capita emissions-reduction target between
                                                                the energy efficiency and productivity of our facilities and
2008 and 2013. We have already exceeded that target and
                                                                equipment. It is not possible for Cognizant to quantify the
are looking to extend it further. Reflecting our efforts, our
                                                                financial impact of the risks or opportunities associated
Cognizant facility in Hyderabad, India won the Tishman
                                                                with climate change.
Speyer Waverock award for the Best Green IT Company in
a leased facility. In our quest for energy efficiency, we also   We also anticipate opportunities to assist our customers
gave Energy Leadership Awards to vendor partners and            in being more energy efficient with adoption of green IT
facility managers at several of our buildings and campuses.     by way of server consolidation, virtualization, cloud com-
                                                                puting and business process optimization that can result
As for environmental management system (EMS) certifi-
                                                                in reduced materials or energy consumption.
cation, we have two large facilities ISO 14001 certified
and intend to certify three more large facilities in the
next year.




                                                                                                Cognizant Technology Solutions   33
Cognizant and our associates also have participated in       When Cognizant hired its 100,000th employee in December
        several energy-conservation initiatives in various Indian    2010, we committed to planting one tree per associate.
        communities. Under Project LULU (Light up Life up), Cog-     We have partnered with NGOs to complete the tree
        nizant’s Green Brigadiers distributed solar lanterns among   plantings in early 2011.
        100 families in the remote hamlet of Malliamman Durgam,
        which is not connected by roads or by an electricity grid.   Conserving Water
        Associates also planted 2,500 trees in and around Chennai    2010 was the first year we captured and reported water
        to make the city greener. And to decrease air pollution,     use information at Cognizant. Because we do not use water
        associates on December 10, 2010, hung up their car keys      in our supply chain and the main use is for drinking and
        and walked, rode bicycles or took public transportation to   personal hygiene, we do not see significant opportunity
        celebrate Car Free Day at Cognizant.                         for reducing water use, but we will study this data and
                                                                     look for opportunities to conserve water in 2011. In many
                                                                     facilities, we have sewage water treatment plants to recy-
                                                                     cle water for watering landscapes, but do not have flow
                                                                     monitors in place to measure the volume recycled. However,
                                                                     after compiling the data and studying this area, we may
                                                                     identify additional opportunities for water conservation.

                                                                     Cognizant has measured consumption of water pro-
                                                                     cured from external sources for the majority of its India
                                                                     operations. For some facilities, we do not receive water
                                                                     consumption data, so we extrapolated this information
                                                                     based on usage at similar facilities. We chiefly use water for:

                                                                     1.   Utility, including air conditioning, personal hygiene,
                                                                          cleaning, landscaping and domestic purposes
                                                                     2.   Drinking and cafeteria operations

                                                                     Based on a total consumption of about 787,452 kilo-liters
                                                                     of utility water, the average associate uses about 1,074 liters
                                                                     per month at the office. Similarly, based on a total con-
                                                                     sumption of 22,399 kilo-liters of drinking water, the average
                                                                     associate drinks 24.48 liters per month at the office.




34   Cognizant Technology Solutions
Helping the Blind Envision New Worlds
Mahua Seth, an associate on the Cognizant 2.0 team, learned music from a visually challenged
teacher who also ran a residential school for visually challenged children. From a young age,
Mahua recognized that these children cherished access to the fantasy world of stories through
verbal storytelling. After her classes and during the weekends, Mahua would read to them.
Another Cognizant 2.0 team member, Vishnu Priya, had acted as a scribe for visually challenged
people since her college days and felt a deep connection to wanting to help.

At Cognizant, Mahua and Vishnu realized their shared passion for serving the visually challenged.
Together they founded the Third Eye Charitable Trust, which makes non-curriculum reading
material accessible in Braille for the visually challenged. In India, only an estimated five percent
of printed matter is available in Braille.

On January 4, 2011, in conjunction with World Braille Day, ‘Third Eye’ released its first set of 25
Braille titles for children, spanning the genres of fiction, biography, environmental awareness,
morality and short stories.




                                                                             Cognizant Technology Solutions   35
Energy saved due to conservation and
        efficiency improvements – 202,673 MWh


        TOTAL DIRECT AND INDIRECT GREENHOUSE GAS EMISSIONS BY WEIGHT (METRIC TONS CO2E)

                                                                                 2010–2009     2009–2008      2010–2008
        GHG Emissions                        2010       2009             2008       Change        Change          Change

        Scope 1                          28,647        21,567           22,981          33%           –6%            25%

        Scope 2                          147,288      129,354          123,593          14%            5%             19%

        Scope 3                          46,270        27,738           35,964          67%          –23%            25%

        Total                          222,205        178,659          182,538          24%           –2%            22%

        Scope 1 Intensity                    0.28        0.28             0.37           0%          –26%           –26%

        Scope 2 Intensity                    1.42        1.66             2.00          –15%          –17%          –29%

        Scope 3 Intensity                    0.44        0.36             0.58          25%          –39%           –24%

        GHG Intensity                        2.14       2.29              2.96          –7%          –23%           –28%

        CO2E Emissions computed using The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard
        (Revised Edition) published by the World Resources Institute.


        EMISSIONS OF OZONE DEPLETING SUBSTANCES BY WEIGHT (METRIC TONS)


        HFC                 Weight            HCFC                 Weight

        134a             1 .6 1 MT             R–22               4.54 MT

        407C             0.60 MT

        125              0.07 MT



        IMPACT OF TRANSPORTING MEMBERS OF THE WORKFORCE (METRIC TONS CO2E)

                                                                                                  2008        % Reduction
        Business Travel Related Emissions                       2010             2009          (baseline)    from baseline

        Scope 3 Intensity MT per associate                      0.44             0.36              0.58              24%



        ENERGY CONSUMPTION (MWh)


        Type of Energy                                                                                              Usage

        Direct energy consumption – 100% from use of non–renewable diesel fuel                                26,961 MWh

        Indirect energy consumption – 100% from purchase of non–renewable electricity                         193,161 MWh




36   Cognizant Technology Solutions
Cricket for Charity 2010
Anyone for cricket — and charity? Cognizant associates certainly were in the mood for that
combination on a warm Saturday in September 2010. They participated in or watched the second
annual Cricket for Charity 2010 in Hartford, Conn., a fundraiser hosted by Cognizant Senior Vice
President Ben Bengtson, head of the Insurance practice, and by five major insurance companies
in the New England area.

Eight teams competed against each other in a knock–out format to decide the champions, and
the teams included the CognizanTrav Huskies, who won the championship match against a team
from Massachusetts Mutual Life Insurance Company.

More than 500 people attended the event, enjoying many family- and child-based activities.
A disc jockey played live dhol, a traditional Indian percussion instrument, and upbeat music
cheered the teams. Throughout the day, raffles were conducted with generous donations. The
fundraiser collected more than $10,000 for United Way.




                                                                           Cognizant Technology Solutions   37
Responsibility
        at Work




38   Cognizant Technology Solutions
At Cognizant, our primary asset is human capital;              In addition to the formal learning in classrooms, Cognizant
our 100,000-plus associates essentially determine              Academy brings learning to our employees’ desktops. We
our economic performance. So we commit much                    use multi-modal methods, such as content-management
attention to attracting and retaining high-quality             systems, blogging, Wikipedia, video-based training and dis-
                                                               tance education/higher education, as well as Technology-
associates and nurturing a culture of service, caring,
                                                               Based Training. In 2010, over 7.1 million hours of training
and passion.
                                                               were provided, with the average employee receiving 84
While our headquarters are in the U.S., the majority of our    hours of training. Associate-level employees received an
operations are in India where we enjoy high standing as a      average of 103 hours of internal training and Management
“local” player. Most of our senior managers have exten-        received an average of 37 hours of internal training. These
sive international business experience and educational         numbers do not include hours of training at external
backgrounds. As an example, Francisco, our CEO, was born       events such as workshops, conferences and seminars.
in Kenya, educated in Asia and the United States and has
                                                               Our primary focus in 2011 includes ensuring a robust
lived throughout the world. As for our global reach, we
                                                               learning enablement at crucial career junctures such as
maintain more than 35 regional sales and client-relation-
                                                               transitioning from college to corporate, becoming a first-
ship offices in 19 countries and more than 50 development
                                                               time lead, changing to a different geography, and working
centers in 24 cities and eleven countries.
                                                               directly with the customer for the first time. We also in-
Training and Professional Development                          tend to identify opportunities with account teams where
We consider our training and development capacities the        learning can make a strong impact by penetrating and
best in the IT industry, emphasizing process and method-       strengthening many more key accounts in 2011 and 2012.
ology as well as client satisfaction. Our staff turnover has
typically been favorable when compared with the industry.
For 2010 our turnover rate was at 18.3 percent. We con-
sistently receive the highest employee-satisfaction marks
among software companies with operations in India, where
we are among the largest technology employers.

We are committed to continuous learning, giving our asso-
ciates opportunities to stay current with leading-edge
technologies and to develop communication skills so they
can perform their roles effectively and efficiently. Our
learning programs are conducted through Cognizant
Academy, our in-house training center. It offers many
conventional and leading-edge educational programs for
employees at all levels.




                                                                                               Cognizant Technology Solutions   39
global reach:
     Cognizant Women's
     Initiative

     COLLEEN DOHERTY
     Director, Talent Management




        When a company grows rapidly, its infrastructure often is slow to catch up. That’s what happened
        at Cognizant, which in 2010 made Fortune’s fastest-growing companies list for the eighth year
        in a row. Now its leadership is moving swiftly to mesh its infrastructure with its workforce by
        focusing on matters such as engaging female employees.

        In November 2010, Colleen Doherty, a recent recruit from Wall Street to Cognizant’s Talent
        Management staff, established the company’s global Women’s Initiative to help attract, engage
        and retain more female talent. Women comprise about one-third of the company’s employees,
        and Colleen is establishing, among other initiatives, an interactive forum for women to connect,
        share ideas and best practices. Thanks to the company’s global collaboration platform, dubbed
        C2.0, women will be able to blog, tweet and post relevant articles, data and events on the internal
        communications site.

        She also is partnering with outside organizations to identify successful initiatives and practices
        around women in the workplace and overall diversity efforts. “Over the next few years, we expect
        this initiative to increase the number of women we have in leadership roles around the globe,”
        says Colleen.

        A survey of Cognizant women (who average 28 years of age) by the Women’s Initiative found
        they want more job flexibility and an improved work-life balance. Colleen, a mother of two
        preschoolers herself, is now working to identify specific programs or assistance to help deliver
        on those two issues. She is expecting that by 2012, the Women’s Initiative will have gotten well
        off the ground and will have begun making a significant positive impact for women at Cognizant.




40   Cognizant Technology Solutions
Cognizant Sustainability Report
Cognizant Sustainability Report
Cognizant Sustainability Report
Cognizant Sustainability Report
Cognizant Sustainability Report
Cognizant Sustainability Report
Cognizant Sustainability Report
Cognizant Sustainability Report
Cognizant Sustainability Report
Cognizant Sustainability Report
Cognizant Sustainability Report
Cognizant Sustainability Report
Cognizant Sustainability Report
Cognizant Sustainability Report
Cognizant Sustainability Report
Cognizant Sustainability Report

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Cognizant Sustainability Report

  • 1. COGNIZANT 2010 SUSTAINABILITY REPORT SUSTAINABILITY REPORT 2010 Responsibility at work
  • 2. TABLE OF CONTENTS Introduction 1 Commitment to Customers 16 Letter from CEO 2 Educating for the Future 18 Letter from VP of Sustainability 4 Governance and Ethics 24 Organizational Profile 6 Stewards of the Environment 30 The Big Picture of Sustainaility 10 Responsibility at Work 38 Sustainability at Cognizant 14 GRI Indicators 48
  • 3. Be Cognizant. Those two words deliver several essential messages about our mission. We want the readers of this report to “be cognizant” — and discover how a leading provider of custom information technology, business process and strategic consulting services redefines the way companies can become smarter and stronger through global services. We also want readers to be aware, to “be cognizant,” of new approaches — about the future of work, for instance — that will give their companies a competitive advantage. And we want readers to “be cognizant” of the way we do business and our positive environmental, social and economic impact, because sustainability is a smart business strategy. Which brings us to our first formal 2010 Sustainability Report. In it, we employ the sustainability reporting framework of the Global Reporting Initiative (GRI) — the gold standard of environmental, social and governance, or ESG, indicators. Sustainability is defined in many ways but we believe it truly relates to meeting “the needs of the present while not compromising the needs of future generations,” which is how the United Nations’ Brundtland Commission defined sustainable development in its “Our Common Future” report. We hope you carefully read our 2010 report — and let us know what you think by emailing us at sustainability@cognizant.com. This report — a necessary benchmark in a journey to continually improve our sustainability performance — conveys Responsibility at Work at Cognizant.
  • 4. Letter from CEO Francisco D’Souza 2 Cognizant Technology Solutions
  • 5. At Cognizant Technology Solutions Corporation, sustainability is vital to our success. Our internal performance and client satisfaction depend on how we: • Provide what’s best for people and the environment. • Conduct our business affairs, employing the highest standards of personal and corporate conduct. • Serve and satisfy our customers; thus shaping our ability to sustain our own future. It also concerns how we support our employees, the communities where we work and the next generation of professionals. We do this through our Cognizant Foundation, Project Outreach for our global education endeavors and Go Green for reducing pollution for our planet, among other initiatives. This also defines sus- tainability at Cognizant. We call it Responsibility at Work. While sustainability is not new to our 17-year-old organization, this is our first formal report. It reflects a broader sustainability program introduced in 2010 and an enhanced focus on its definition as set forth by the Global Reporting Initiative (GRI), the global leader in sustainability reporting. We have embraced the GRI’s foundation of environmental, social and governance, or ESG, indicators as well as economic considerations. We also appointed a vice president of sustainability to lead our efforts and engage our stakeholders. This engagement will inform how we will contribute to the value and sustainability of our brand and to our continued financial success. Education is essential to Cognizant: It ranks as the most significant issue in the IT services industry and, perhaps, of our time. A severe talent shortage is emerging on the horizon of developed countries like the United States and in Europe, underscoring the importance of education to address it. The United States is slipping in global education performance — especially in science, technology, engineering and math — the same fields vital for fulfilling many critical jobs of tomorrow. We have developed a unique approach to The Future of Work and believe it will enhance organizations’ productivity and competitive advantage while guiding them in building a more sustainable business. We recognize we have work ahead of us. For example, we are committed to advancing a worldwide sustainable supply chain. We are undertaking sustainability efforts globally and adapting them to local needs when necessary. 2010 is our baseline year from which we will measure our progress with the ESG indicators. We expect our 2011 report will demonstrate significant improvement in our Responsibility at Work. Francisco D’Souza CEO, Cognizant Cognizant Technology Solutions 3
  • 6. Letter from VP of Sustainability Mark Greenlaw 4 Cognizant Technology Solutions
  • 7. While we have been a socially responsible company since our establishment in 1994, Cognizant expects to be an even smarter and more responsive organization ahead. We will achieve this goal by executing our sustainability strategy and measuring performance on the ESG indicators. We established our sustainability office in 2010, and I was appointed to oversee it. As our former chief information officer, I knew our business inside and out, and therefore, recognized the business value of making sustainability a priority. My office builds on Cognizant’s principles of integrity, service and expertise. It provides a framework for pursuing the challenges and opportunities that sustainable business practices spark. It also helps address our performance to meet global targets by guiding how we measure and evaluate the impact of what we do. This process takes time, but a chief sustainability officer can help quicken that task and enhance its importance within the organization. IT services companies, such as ours, must move beyond a focus solely on green IT and into what I call Sustain- able IT: using technology to address not only environmental but also social and governance issues. We are striving to do this not only within Cognizant, but also by helping our customers use Sustainable IT practices. As a “born global” technology consulting and services company — headquartered in Teaneck, New Jersey, and with operations in North America, India, Europe, Asia, and Latin America — we are committed to becoming the world’s most sustainable IT company. This is our chance to contribute something bigger — and when you get that rare opportunity, you must seize it and make a responsible difference. Mark Greenlaw VP of Sustainability, Cognizant Cognizant Technology Solutions 5
  • 8. Organizational Profile In just 17 years, Cognizant Technology Solutions technology innovation, deep industry and business-process Corp. has grown from a start up with 175 employees expertise with a global, collaborative workforce that to a company with over $4.6 billion in annual rev- embodies the future of work. Our clients increasingly turn enues and 104,000 associates worldwide in 2010. to us as they look to distribute a broader range of services globally, while simultaneously addressing the secular and We have prospered — our revenues surged 40 percent in technological shifts affecting their industries. 2010 — because we combine a passion for client satisfaction, 6 Cognizant Technology Solutions
  • 9. Cognizant is a leading provider of information technology, At Cognizant, we embrace six cultural value drivers: business process and strategic consulting services and is • We are Open, providing an environment of open publically traded on the NASDAQ (CTSH). Headquartered doors and open minds. in Teaneck, New Jersey (U.S.), we utilize a seamless glob- • We are Transparent, our communications, whether al sourcing model that combines technical and account positive or negative, are always proactive, direct management teams located on-site at the customer loca- and honest, and we view transparency as critical tion and at dedicated global development and delivery to the health of our company. centers located primarily in India, China, the United • We are Driven, with a “can do” approach focused States, Canada, Argentina, Hungary and the Philippines. on delivering excellence at all times, and we Our primary customers are Global 2000 companies and expect and reward personal and team initiative. our business is organized around four vertically-oriented • We are Empowered, our associates have the business segments: Financial Services; Healthcare; Manu- freedom to find the best way to meet a customer’s facturing, Retail and Logistics; and other, which includes needs within the structure of our Code of Conduct. Communication, Information, Media and Entertainment and High Technology. We primarily serve the United • We are Flexible, able to adapt in real time to each States and Europe, although we are growing our pres- new marketplace challenge. ence in various international markets. • We are Collaborative, predicating the growth of individ- uals on their contributions to their team’s success in delivering exceptional customer experiences. OUR DIRECT ECONOMIC VALUE Below is a summary of our Consolidated Statements of Operations taken from our 2010 Annual Report. Twelve Months Ending December 31 (In thousands, except per share amounts) 2010 2009 Revenues $ 4,592,389 $ 3,278,663 Operating expenses: Cost of revenues (exclusive of depreciation and amortization expense shown separately below) 2,654,569 1,849,443 Selling, general and administrative expenses 972,093 721,359 Depreciation and amortization expense 103,875 89,371 Income from operations 861,852 618,490 Total other income, net 16,728 18,461 Income before provision for income taxes 878,580 636,951 Provision for income taxes 145,040 101,988 Net income $ 733,540 $ 534,963 Basic earnings per share $ 2.44 $ 1.82 Diluted earnings per share $ 2.37 $ 1.78 Cognizant Technology Solutions 7
  • 10. Indeed, we believe our deep interest in the future of work — with its forces of globalization, virtualization, millennials and technology — puts us at the forefront of the new economy. It is changing the way in which businesses, consumers, employees and others relate to and interact with each other. It is also driving businesses to be more transparent and more accountable for the positive and negative impacts they have on society. In addition, we believe our intense commitment to education will help drive sustainable development across the world. We strive to help people gain the education necessary to participate in the global economy. Our support also under- lines the critical business case to meet the increasing demand for highly educated workers. At the same time, we recognize that improved education can bring more people out of poverty and give them the knowledge nec- essary to solve some of our world’s biggest social and environmental challenges. Further, we are an extremely well-managed company, with strong governance, ethics and a track record of providing rewarding careers to our associates. In addition to robust economic and social performance, we are working prag- matically to improve how we manage our environmental impact. We are committed to lead our industry in conserv- ing energy, reducing and disposing of waste, and recycling. Cognizant actively supports national and international climate-change policies, protocols and initiatives. Further, we proactively teach our associates best practices for conserving energy and shrinking individual carbon foot- A People-Intensive Company prints — all in an effort to operate in an environmentally We are a people-intensive company. In December 2010, friendly manner and drive sustainable economic growth. we hired our 100,000th associate, a milestone we are celebrating by planting 100,000 trees around the world Through our 50-plus development centers on five continents, to support a healthier planet. We rank No. 68 on HR we grow skilled labor markets and stimulate economies Executive magazine’s 2010 roster of the 100 largest U.S.- in developing nations, particularly India, by helping more based non-government employers. As a result, we have a than 700 clients worldwide grow their businesses and run significant and positive economic impact in terms of the them efficiently and effectively. compensation we pay our employees. We also provide solid career opportunities with rapid advancement, primar- On the hiring front, 83 percent of our senior managers ily because we have always focused on building a global are local hires, meaning they live locally and are citizens team and accessing top talent from leading universities or legally authorized to work within the country in which and the lateral market. We believe this emphasis on talent, they are hired. While we do not have explicit procedures coupled with our unique global culture, rank among our for local hiring, factors considered include skill availability key differentiators. in the marketplace, migration regulations, geography, and local customs. 8 Cognizant Technology Solutions
  • 11. While awards cannot truly measure a company’s contri- • Top recruitment honors at leading business and bution either to the corporate world or broader society, they technology schools in India can serve to reflect its commitment to responsibility and • “Green IT company of the Year” by the IT & ITES trust. Among the awards Cognizant received in 2010 were: Industry Association of Andhra Pradesh • Forbes’ “Most Admired Companies” list for the second year in a row PROPORTION OF SENIOR MANAGEMENT AND • Fortune’s 100 Supercharged Performers and ABOVE HIRED FROM THE LOCAL COMMUNITY All-Star List (As of December 31, 2010) • Institutional Investor All–America Executive Team Region Local Hire % • First place in EquaTerra’s Performance and Client Satisfaction Rankings in Europe Asia–Pacific 62% • Bloomberg BusinessWeek 50 Top Performing Europe 69% Companies for third consecutive year India 98% • Forbes’ “25 Fastest-Growing Technology Compa- Americas 72% nies in America” for the sixth year in a row Total 83% Cognizant Technology Solutions 9
  • 12. The Big Picture of Sustainability 10 Cognizant Technology Solutions
  • 13. Strategically, corporate sustainability focuses on • Globalization: allowing companies to leverage the management of social, economic and environ- expertise anywhere and everywhere it exists. mental risk and the ultimate link to shareholder • Millennials: an ethnically and racially diverse value. The Dow Jones Sustainability Indexes — generation of young adults whose oldest members have just hit 30 and whose mindset is revamping the first global indexes tracking the financial everything from communication to innovation out performance of the leading sustainability-driven side and inside the organization. companies worldwide — define sustainability as • Virtualization: the new way to work that enables a business approach, not peripheral activities. real-time teamwork between project members Corporate sustainability seeks to create long-term share- regardless of time or place. holder value, not make a quick profit. It embraces oppor- • Technology: the new ideas that include the Cloud, tunities with the public agenda, which alone generates new mobility, social tools and predictive analysis that business possibilities that encompass more than energy are creating transformative new business processes. efficiency and accessibility. It builds a business that is not They may be changing the nature of business and IT, but only successful today, but is prepared for the business do these forces impact sustainability? Definitely. demands of tomorrow. Globalization Unites Us Reflecting what we do and our need for top talent to do Globalization levels the economic playing field. It unites it, we at Cognizant concluded that our own sustainability people from different nations and cultures as partners or efforts should concentrate on the dynamic changes shap- co-workers to solve business and social problems. It fosters ing the future. They demand our ardent attention, not new understanding and appreciates different cultures only for our success but for that of our clients. Forging and their associated social issues. As a result, our planet this strategic view has been a white paper entitled “The seems a little smaller and offers the sense of a broader Future of Work,” written by Cognizant Senior VP Malcolm commitment to all people on the planet, both environ- Frank and TCG Advisors Managing Director Geoffrey Moore mentally and socially. (see www.cognizant.com/FoW-New-Approach). Frank and Moore identified four powerful forces shaping the Future Millennials, who are 60 million strong, want corporations to of Work and also the levers available to enterprises to en- demonstrate responsible, authentic and transparent behav- gage them. They translated these strategies into action. ior. This sentiment is shared by staff of all generations: nearly 90 percent of employees say they are more likely The forces shaping the Future of Work — influences that, to work for an ethically and socially responsible company, fundamentally, are changing the nature of business and says a 2010 article in Staffing Industry Review magazine. IT, are: Cognizant Technology Solutions 11
  • 14. local reach: Year Up Workforce– Development Program RAMALO SINGH Coordinator, Network & System Services Since Cognizant’s own sustainability depends on its 100,000-plus knowledge workers, education ranks as its most critical sustainability issue. That’s why the firm is focusing its sustainability platform on initiatives geared toward educating and developing tomorrow’s knowledge workers — like Ramalo Singh, a 21-year-old college student from Queens, N.Y. Ramalo, a native of Guyana, is finishing his degree but, thanks to an innovative workplace- development program, called Year Up, also has nearly a year of experience at Cognizant. Year Up provides Ramalo and other young adults from underserved neighborhoods six months of technical and professional education and real-world training and opportunities in IT or investment operations. All of its qualified students gain internships and 84 percent land full or part-time jobs. Cognizant has benefited from hiring Year Up graduates. “It just made sense to us,” explains Mark Greenlaw, Cognizant’s VP of sustainability & educational affairs. “Engaging in Year Up underscores our responsibility as a company to ensure there’s a pipeline of talented recruits like Ramalo. The program is good for society and it’s just good business.” Ramalo is also thankful. After studying computer repair at Thomas Edison High School with aspirations for higher education, he was unable to afford college. He worked at a supermarket until a cousin who had participated in the Year Up program encouraged Ramalo to apply. He was accepted into a curriculum of technical-skills training and lessons in professionalism. After his internship at Cognizant, he was hired full-time at our Teaneck headquarters. “It was a great fit,” Ramalo says. “Almost everything I learned translated into what I do today at Cognizant. I feel very fortunate to have had this opportunity.” 12 Cognizant Technology Solutions
  • 15. As customers, Millennials want transparency and informa- ability to provide virtual volunteer opportunities, allow- tion about the products and services a company offers so ing them to tap into a much broader volunteer base. they can understand how they impact society and the envi- Technology, such as Cloud, social and mobile computing, ronment. As employees, they have a greater expectation also have a profound impact on both companies and NGOs of work-life balance, desire fair and rewarding workplaces, by promoting greater internal and external collaboration, and strive to find meaning and purpose in their work. more efficient business models and rich communications The virtualization of the organization enables businesses between organizations and their stakeholders. Through and non-governmental organizations (NGOs) to tap into technology, customers and employees are having conver- talent and capital wherever it exists worldwide. With virtual sations, aided by social and mobile platforms. This drives organization models, work becomes an activity rather greater transparency between businesses, customers and than a physical place, and employees can contribute from other stakeholders. In addition, Cloud, and social and mobile wherever they reside, reducing the need to commute long platforms are delivering new tools to engage and share distances, cutting energy consumption, and improving collective knowledge with stakeholders and enlisting them work-life balance. This phenomenon also gives NGOs the to address environmental and social issues. FUTURE OF WORK FORCES AND SUSTAINABILITY >> GLOBALIZATION >> MILLENNIAL Allowing companies to leverage An ethnically and racially diverse expertise anywhere and everywhere generation of young adults whose it exists. oldest members have just hit 30 and whose mindset is revamping everything from communication to innovation outside and inside the organization. >> VIRTUALIZATION >> TECHNOLOGY The new way to work that enables The new ideas that include real–time teamwork between project the Cloud, mobility, social tools members regardless of time or place. and predictive analysis that are creating transformative new business processes. Cognizant Technology Solutions 13
  • 16. Sustainability at Cognizant 14 Cognizant Technology Solutions
  • 17. At Cognizant, we view sustainability broadly; it not only encompasses environmental sustainability, but also social and economic sustainability. Our deep commitment to a sustainable business can be best viewed by examining five major themes: commitment to customers; educating for the future; governance and ethics; stewards of the environment; and responsibility at work. Cognizant Technology Solutions 15
  • 18. Commitment to Customers 16 Cognizant Technology Solutions
  • 19. As a highly customer-centric company, we consider cus- quantitative and qualitative methodologies. Customers tomer satisfaction to be our primary value discipline. within client organizations are nominated for inclusion Placing our customers first is embedded in our culture, in the study and vetted by the client organizations. A and we put that commitment to the test. minimum of 40 percent of the nominees participate in the quantitative portion. Since customer satisfaction is EquaTerra, a provider of IT advisory services, recently one measure of an organization’s sensitivity to its cus- ranked us No. 1 in Europe for customer satisfaction. In our tomers’ needs, from an organizational perspective, it is most recent annual customer-satisfaction survey, and for essential for long-term success. the fourth year in a row, more than 90 percent of our clients expressed a high degree of satisfaction, and that’s Customer Satisfaction Provides Insights considered extraordinary in our industry. Very simply, we In the context of sustainability, customer satisfaction rarely lose a customer. Each of our business units devel- provides insight into how the organization approaches its ops an action plan to address issues that may rise with its relationship with one stakeholder group, its customers. It scores on customer-satisfaction surveys. also can be used in combination with other sustainability measures. Customer satisfaction can provide insights With our client-first mindset, we place a senior partner into the degree to which an organization considers the onsite with a client team to ensure flawless alignment. needs of other stakeholders. Results: Our clients tell us This Client Partner is the team’s leader and by working that we truly excel at partnering closely. Our clients tell onsite, absorbs a client’s culture, operational processes, us that we take extraordinary lengths to solve problems, challenges and business goals. The Client Partner, who or just help out. Our associates take a “can-do” attitude, often has an advanced degree and at least a decade finding flexibility beyond the contractual terms of our of experience, pairs with a senior Cognizant Delivery partnership. Manager as part of what we term our “two-in-a-box” client- engagement model. This approach lets us provide superior Our customers entrust us not only to solve some of their service to help each customer reduce IT operational costs, more pressing business and technology problems, but embrace best practices and undergo sustainable busi- they also grant us access to their sensitive and private ness transformation. data and information. To ensure that we protect this in- formation, Cognizant has appropriate operational and We Offer Deep Experience technological processes and procedures designed to Many of our senior people originate from the businesses safeguard against unauthorized access, loss, destruction, we serve, so we are able to offer deep experience across theft, use or disclosure of data. In 2010, we had no incidents nearly all major industries. Our advanced technology of breaches of customer privacy or loss of customer data. also helps us serve clients better. Built on the latest Web We take extraordinary care to ensure the security of our 2.0 technologies, our new Cognizant 2.0 global delivery data and information. We house our servers in secure platform lets our associates, business partners and clients data centers and use a wide range of industry leading worldwide work as one. This fosters sharing of experi- tools for scrambling test data provided by clients, as well ence and insights, and collaborating more in real time to as sanitizing and shredding files on old computers we re- achieve superior results. deploy. We also use an extensive set of filtering and data We also want regular client feedback. Every year, we loss-prevention tools to ensure that sensitive informa- conduct a customer-satisfaction study, employing both tion does not leave our network without authorization. Cognizant Technology Solutions 17
  • 20. Educating for the Future 18 Cognizant Technology Solutions
  • 21. The new knowledge worker is defining the Future cent of those students study beyond grade 8; the rest of Work — but where will we find them and can we drop out at various stages. School capacity in the coun- educate enough of them? These concerns explain try is heavily skewed towards primary- and middle-level why education is so important to Cognizant. Tomor- education. Only 13 percent of schools provide secondary- and higher-level education. In order to provide universal row’s knowledge workers will have a significant school education by 2015, India will need another impact on sustainability. In today’s workforce, 250,000 schools. Most of these schools will have to be knowledge workers are critical for their ability to set up through private investment. handle information and data for clients. U.S. Education Crisis These workers will play a crucial role in solving the Meanwhile, in the U.S., despite billions of dollars spent on world’s most pressing social and environmental problems education reform, students continue to fall behind other — from climate change and health issues to water and nations in the key disciplines necessary for tomorrow’s food shortages and cities of the future. The need for workforce. Among global developed nations, for instance, highly educated talent for our company and our custom- the U.S. ranks 15th in reading, 23rd in science and 31st in ers’ businesses grows, but significant shortages of these mathematics. Just one-in-three eighth graders were rat- workers have emerged in the U.S. and Europe. ed proficient or higher in a national math test, and more Talent Shortage Exists than one in four scored below the basic level. We are much more aware of this scarcity because of our We also are feeling the economic and business effects of born-global DNA — a U.S.-based company with roots in too few U.S.-based graduates in STEM fields — science, India — and world view on how education has driven social technology, engineering and math. While the number of and economic transformation. India’s focus on education, degrees awarded in the STEM fields has edged up over the for instance, enabled the creation of a dynamic IT industry past five years, only 15.6 percent of bachelor’s degrees that continues to fuel economic growth and lift millions were awarded in these fields, and the overall share of out of poverty. More than 3,800 business schools in India such degrees shrank during the same period. Meanwhile offer two-year MBA or equivalent programs, and they China awarded nearly half (47 percent) of its undergrad- are awarding more than 100,000 management degrees uate university degrees in STEM fields; South Korea annually. India also is producing 437,000 four-year degree awarded 38 percent; and Germany, 28 percent. engineering graduates each year, compared to 85,000 in the U.S. By 2018, according to a Center on Education and the Workforce report, job openings in STEM-related fields will However, there are serious challenges within the public number eight million, although the next generation of education system in India. Only 230 of the 360 million U.S. workers will be unprepared and under-qualified to school-age children are enrolled in school. Only 53 per take advantage of many of those positions. Cognizant Technology Solutions 19
  • 22. Helping the Comprehensive Learning Center Individuals with autism spectrum disorders often need highly individualized help, and that’s what The Comprehensive Learning Center (CLC) does for 3-year-olds up through adults. Success of CLC’s program relates directly to the ongoing support of its sister organization, The AJ Foundation for Children with Autism. The AJ Foundation conducts fundraising activities to offset the deficit between funding provided and the actual costs of providing services. In October 2010, 25 members of the Cognizant Outreach Team in the U.S. Mid–Atlantic states, along with many of its offshore colleagues, helped the AJ Foundation with its 3rd annual AJF50 Bike Ride for Autism. In the previous two years, registrations for the event were handled manually. In addition, it was difficult to encourage riders to solicit financial support from family and friends. A software-development team from Cognizant’s offshore locations in India came to the rescue, volunteering time to develop a website that facilitated online registrations and donations, specifically by allowing riders to solicit outside donations through the website. As a result, donations more than doubled those received in 2009. The website’s functionality was truly the difference that made the 2010 AJF50 Bike Ride for Autism a great success. As for Cognizant Outreach, it’s an example of the global approach we take to the sustainability of quality education in the communities where we serve. 20 Cognizant Technology Solutions
  • 23. Cognizant has a unique volunteer led program called Outreach in Bangalore has collaborated with a training Outreach to promote the cause of education through a institute, Peoplepro, to introduce life skills-based learn- combination of voluntary efforts of associates and admin- ing modules to the classroom curriculum, and in Pune, in istrative and financial support from the company. In India, association with the NGO Akshar Bharathi, 12 libraries were for instance, more than 8,000 of our associates volunteered established to help rural schoolchildren gain access to in 2010, primarily with underprivileged children in the quality books and educational materials. The Life Sciences public schools, positively impacting an estimated 130,000 Outreach council partnered with another NGO, Give Life, lives. Since it was launched in 2007, Outreach has made to provide holistic education and nourishment to 300 a deep and very-lasting impact in the communities we orphan and single parent children. In January 2010, 400 operate in. More than 9000 Cognizant associates have associates reached out to about 7,500 students by organiz- participated in over 1000 community service projects ing more than 50 science-related events. and events and have reached out to 300,000 children. For its part, Cognizant contributes about $10 million annu- Outreach works with 116 schools and 26 other institutions ally to education and infrastructure investments across such as orphanages and juvenile homes in six Indian states, the globe. and it also has established a presence in China, the United What effect do these Cognizant Outreach programs have States, the United Kingdom, Argentina and the Philippines. on associates? “Both new employees and those who have From setting up computer labs to refurbishing class- been here many years have said that they feel really proud rooms and science labs, Outreach in small ways makes a to be part of Cognizant because of the Outreach program huge difference. Volunteers also teach in select subjects and the incredible difference it is making to the lives of and offer life skills and leadership training for the students, underprivileged children,” says Archana Raghuram (pic- among other engagements with the schools. tured below), the program’s manager. Making A Lasting Difference Outreach goes beyond funding and illuminates the spirit of volunteerism and the chance for our associates to make a lasting difference. TalHunt, an interschool competition, is a flagship initiative of Outreach begun in 2008 to provide a platform for young minds to showcase their talents. Over the past 3 years, TalHunt has created a first time opportunity for 30,000 students from 60 schools to showcase their creative capabilities. 2,700 Cognizant asso- ciates volunteered to train the students in dance, music, painting, and Chess. Winning schools receive financial aid to help improve their facilities. Our associates also have contributed to campaigns to fund children’s notebooks. In the past three years, 360,000 notebooks have been distributed to 53,000 students in 115 schools. Over 28,000 Cognizant associates contrib- uted more than $130,000 to make this possible. Outreach also has partnered with NGOs, such as Junior Achievement, to work for children in the education sector. Over 700 associates have participated in Junior Achievement activi- ties, helping nearly 23,000 students think about and make a career choice from a world of opportunities. Cognizant Technology Solutions 21
  • 24. In the United States, Cognizant is a member of Change the Our desire to contribute to STEM educational advance- Equation, a new initiative led by more than 100 CEOs who ment goes beyond simply contributing cash gifts. Among collectively pledged more than $5 million in first-year other endeavors, we and our associates have donated more funding to improve awareness and effectiveness in STEM than 3,000 books to middle-school children in several education. Our CEO, Francisco D’Souza, attended the White states as part of the Sally Ride Book Donations program; House launch of the initiative on September 16, 2010. begun a Junior Achievement pilot program in six schools Among other things, Change the Equation has begun advo- in Chicago, Illinois and Hartford, Connecticut; and part- cating greater participation by the corporate community in nered with the School for Autism to record books for the numerous programs that utilize the STEM disciplines to blind and dyslexic. fuel youth creativity, improve professional development for In 2010, we began a comprehensive review of ways we can teachers, and increase student participation and success in better engage in advancing STEM education, and in 2011, Advanced Placement math and science courses. we will launch a substantial nationwide program to inspire We also are a national corporate underwriter for NPower, young learners to explore and develop STEM-related skills a nonprofit organization that brings IT services to other necessary for the 21st century. We are committed to raising nonprofits and training to young adults, with its workforce- student performance in STEM disciplines and encour- development program that helps disconnected young aging more students to pursue STEM higher education adults find IT careers. One of our senior vice presidents, and careers. Prasad Chintamaneni, recently joined NPower’s board. We also support the New York Hall of Science, where Francisco also serves on its board. COGNIZANT IS A MEMBER OF CHANGE THE EQUATION, A NEW INITIATIVE LED BY MORE THAN 100 CEOS WHO COLLECTIVELY PLEDGED MORE THAN $ 5 MILLION IN FIRST–YEAR FUNDING TO IMPROVE AWARENESS AND EFFECTIVENESS IN STEM EDUCATION. 22 Cognizant Technology Solutions
  • 25. Quenching Students’ Thirst for More than Education Bala Prasad, a Cognizant associate, graduated from A.P.S.W.R. Hr. Secondary School in Uppalwai, India, located in a remote part of Andhra Pradesh state. As a student, Bala and his classmates walked two kilometers to carry drinking water back to the school. After joining Cognizant, Bala learned about the “You can help a school” program, an initiative launched through Cognizant’s Project Outreach. The program empowers associates to nominate deserving rural schools to receive Outreach-sponsored infrastructure improvements, such as new libraries. Bala submitted a proposal to establish a reverse osmosis water plant for his former school and today, the plant provides clean drinking water to its 500 students. Bala is glad that students no longer must go through the arduous trek he did just for a glass of drinking water. The system also enables students to better focus on education priorities. In 2010 Cognizant’s “You can help a school” initiative was piloted in Pune and Hyderabad and has since received more than 80 referrals. Cognizant Technology Solutions 23
  • 26. Governance and Ethics 24 Cognizant Technology Solutions
  • 27. We take our governance responsibilities very • Instill trust and confidence in the minds of our seriously at Cognizant and have gained a strong associates, customers, shareholders, vendors and reputation as an ethical company with strong gov- other stakeholders. ernance policies and practices. Indeed, strong ethics, The Code contains our policies and procedures on myriad transparency and openness ground our values. issues that apply to honesty and integrity. They include the acceptable use of Cognizant and client assets; accu- As our CEO emphasizes in our Code of Ethics, “Our win- racy of books, records and public reports; competing ning mentality isn’t just about doing great things. It’s honestly and fairly in the marketplace; compliance with about doing great things the right way. That’s how we laws, rules and regulations; confidential information and continue to build trust with our customers and protect intellectual property protection; conflicts of interest; gifts the valuable asset that is Cognizant.” and gratuities; insider trading; media, analyst and investor We have not had any major negative incidents occur in this communications; political activities; respectful treatment area. We have developed a software product — Governance- of associates, customers and business partners; and respon- in-a-Box — that delivers a structured approach to gover- sible use of social networking. nance and compliance, and reduces risks for our clients. The Code also serves as an aid to associates and managers To us, business ethics comprise rules of conduct and ethical when making decisions. It contains industry-specific exam- principles applied in the workplace. They go to the heart ples, frequently asked questions, key contacts and links of our integrity — our honesty, accountability, fairness to internal policies, among other things. All associates are and transparency — and this is absolutely critical to us. We required to complete annual ethics training and vice believe in providing a positive work environment that is presidents and above must certify their compliance with fair, safe, rewarding, enjoyable and fuels high productivity the Code’s provisions annually. In 2010, 91 percent of our in service to our clients. We consider ethical behavior the employees received training on ethics, for a total of cornerstone of our long–term business success. 37,244 hours. Additionally, our Enterprise Risk Management group conducts annual risk analysis surveys covering all We live by a Code of Ethics that reaffirms our core values business units and corporate functions to assess the like- and standards of conduct that is designed to: lihood of various risks including corruption. • Communicate the basic principles of policies, business ethics and legal requirements. Rigorous Controls • Protect Cognizant’s reputation and ensure that all Like all U.S.-based corporations, Cognizant is subject to associates understand the rules of the game. the Sarbanes-Oxley Act of 2002, which covers financial • Assist in making decisions to make sure our disclosure and addresses controls over financial report- business is conducted with integrity and honesty ing, audit committees, external auditors, codes of ethics, as well as in accordance with legal requirements. whistleblower protection and attorney conduct. Since it Cognizant Technology Solutions 25
  • 28. Three recent Cognizant U.S. Campus Program hires joined in ringing the NASDAQ opening bell on the first trading day of 2011 on January 3. Pictured are Charles Esipila and Jennifer Mosquera, both of Pennsylvania State University, and Vishal Ramani of Purdue University. went into effect, we have complied with all of Sarbanes- Compliance Resources Oxley’s provisions and have never reported a “material Our dedicated compliance resources include our general weakness” in controls over financial reporting. Our com- counsel, compliance director and chief security officer. pliance is tested independently by our external auditors. They ensure that management and associates comply Additionally, we have had no legal actions for anticom- with all internal policies and external laws and regulations. petitive behavior, anti–trust, or monopoly practices. Nor As for professional guidance, we retain both outside legal have we had any significant claims against us regarding counsel and independent accountants to ensure that good the use of our products or services. governance practices and regulations are followed. We might consult with these professionals regarding board Our board of directors includes an independent, non- approval of acquisitions and related-party transactions; executive chairman and six of our eight directors are complete and accurate disclosures in public filings such “independent” under rules of the NASDAQ, where Cognizant as our annual report; and the performance of annual audits is listed. Directors are required to complete an extensive of our financial statements. annual survey to guard against conflicts of interest that could interfere with the exercise of independent judg- Our internal audit capabilities include audit teams in the ment. We also have had great continuity with our board, United States, India and the United Kingdom/Europe. They with four independent directors serving at least 10 years have direct access to the board’s audit committee and and the other two independents serving two years and their scope is set annually based upon risk assessments, four years, respectively. e.g., finance, compliance and security. The internal audit teams perform reviews of Sarbanes-Oxley section 404; Our audit committee, whose members are in regular compliance with laws and regulations, such as immigration communications with the chief financial officer (CFO), statutes; control reviews at entities that are not covered controller, general counsel, and heads of compliance and by Sarbanes-Oxley; compliance with internal policies that internal audit, consists of four independent directors, one cover banking, travel and expenses; accounting processes; of whom serves as chairman and who is an audit commit- and payroll. tee financial expert, having served as CFO at Paine Webber and Pan American Airways. Our nominating and corporate Cognizant has established a stringent policy covering governance committee develops and recommends cor- insider trading and black-out periods for stock transac- porate governance policies and oversees the evaluation tions. This policy is designed to prevent the occurrence or of the board’s effectiveness. appearance of improper trading in our stock by associ- ates and directors. It assures shareholders, analysts and We have a whistleblower hotline, called the Compliance others that the market for our stock is a fair one and not Helpline, which serves as a vehicle for employees, clients, influenced improperly by those that may possess non- vendors and others to report concerns anonymously about public information. The black-out period that covers all ethical behavior. Complaints are routed jointly to the com- associates extends from 15 days before each quarter ends pliance director and general counsel with a detailed account to the third business day after we release earnings. of all reported incidents sent monthly to the audit committee chairman and to executive management. 26 Cognizant Technology Solutions
  • 29. We Survey Associates Annually exchange for an internal service. While the monetary We offer exit interviews to all terminated associates and amount was insignificant, the contractor responsible was the results of those interviews are communicated to the terminated and additional screening procedures were compliance director and the general counsel if they con- put in place for contractors in India. tain allegations of fraud or unethical conduct. In addition, We are in the process of writing a Sustainable Procurement we conduct an annual survey of associates to monitor Policy, which will be published in the coming year. We ex- their satisfaction levels and solicit feedback on leadership, pect this policy will include a supplier survey which will management and other concerns, including on ethics and draw from the GRI G3 guidelines. We are also working with business conduct. An outside party tabulates the survey our procurement team to embed corporate responsibility results and they are reviewed annually by management clauses into our contracts. The supplier survey will be one to determine if any actions need to be taken. mechanism to ensure these clauses are followed. We are striving to ensure that the vendors within our As for political activities, we encourage participation in the supply chain employ the highest ethical standards within political process on an individual basis and not on behalf their own business and we investigate and respond to of the company. Regarding policy advocacy activities, our any allegation of bribery or corruption. In January 2010, associates are prohibited from lobbying the government we received a single substantiated report of bribery in or other policy-making organizations on Cognizant’s behalf Cognizant Technology Solutions 27
  • 30. unless it is explicitly part of their job to do so. Those en- gain access to the skilled talent Cognizant needs to compete gaged in policy advocacy on behalf of Cognizant comply and innovate. with all applicable laws, rules and regulations, and our Education. Building on our Public Outreach, Cognizant Standards of Business Conduct. participates in broad-based industry associations and co- Public Policy Advocacy alitions to support policy initiatives geared to increase In terms of public policy, a wide range of policies are in curriculum quality and student participation in math and place or are being considered by governmental bodies in science fields. capitals from Washington to London to Delhi that can and Tax. Tax laws have a substantial impact on capital invest- do have a material impact on our business. We consider ment and economic development. We advocate for tax policy advocacy on issues of importance to our business, policies that facilitate innovation, improve competitiveness, customers, employees, shareholders and industry an es- and fuel investment and job creation. sential component of our strategic planning. We work to ensure that our public policy positions complement or Market Access. Trade agreements that reduce barriers advance our global sustainability and citizenship objectives. and improve access to new markets are vital for improved commerce and collaboration for Cognizant, our partners Fundamentally, Cognizant’s public policy objectives are and our customers. We advocate for bilateral, regional focused on issues that we consider essential to advancing and worldwide trade agreements that facilitate trade in innovation, competitiveness, job creation, economic growth services, enable temporary migration of skilled profes- and sustainable standards of living. Our policy agenda is sionals, increase protections on intellectual property, and centered on workforce development, education, tax, mar- allow for greater regulatory transparency. ket access and information privacy and security. Information Privacy/Security. Today’s technology infra- Workforce Development. Cognizant’s success depends structure facilitates global commerce and communication, significantly on recruiting, hiring and retaining highly skilled drives the creation of new consumer products and services, professionals. Cognizant and its customers face near and and provides a foundation for governments to better long-term skills gaps in developed countries, which neces- serve its citizens. To protect this infrastructure, which is sitate workforce development and migration policies to mostly owned and managed by the private sector, govern- ments work with private entities to protect their citizens from cyber attacks and data breaches. We support policies that improve cyber-security through effective informa- tion management and technological innovation. Cognizant also recognizes the critical importance of fun- damental human rights such as the prohibition of child labor and forced labor. Cognizant does not use child or forced labor in any of our operations. As a technology ser- vices company, such issues are not a significant risk factor in our business operations. In our daily operations, we adhere to all International Labor Organization standards and are studying our supply-chain policies and procedures to ensure that all our suppliers conform to the same high standards as we do. 28 Cognizant Technology Solutions
  • 32. Stewards of the Environment 30 Cognizant Technology Solutions
  • 33. We believe protecting the planet is everyone’s Our two-and-a-half-year-old Go Green program drives our business. Cognizant stands committed to leading environmental initiatives, led by our Chennai, India-based our industry in energy conservation, waste reduction director of sustainability, Premkumar Pandurangam. The and disposal, and recycling. We have established a program currently targets carbon emissions, energy and paper use, and will soon include waste, hazardous materi- greenhouse gas policy that is reducing emissions als and water use. across our global delivery network. Go Green has engaged many associates in environmental We follow industry best practices and statutory require- programs, using a sophisticated approach to organizational ments aimed at protecting the world’s environmental change-management practices to engage associates in health. We also actively support national and international the discussion. climate-change policies, protocols and initiatives, such as the Carbon Disclosure Project and the former U.S. Environ- With Cognizant Go Green, we have set and met mile- mental Protection Agency (EPA) Climate Leaders program. stones that include: • Reduced per capita carbon emissions by In addition, we are proactively working with our employees 28% since 2008. to put into effect best practices for conserving energy • Reduced per capita energy consumption by and shrinking individual carbon footprints. Collectively, 29% since 2008. these measures ensure that we operate in an environ- • Constructed three new green campuses to mentally friendly manner and drive sustainable economic environmentally friendly building standards growth. We are proud that on the Newsweek Green Rank- that won LEED® Gold rated awards. ings, Cognizant moved to No. 138 in 2010, up from No. 449 • Deployed PC power management to 50,000 the previous year. Within the tech industry list, Cognizant desktop computers, saving thousands of tons moved to No. 25 from No. 49, and we continue to lead that of carbon dioxide. group in terms of our environmental impact, which re- • Instituted double-sided printing, print quotas and flects our low per-capita emissions. power-saving modes on our printers across India. Managing Our Environmental Impact • Reduced paper consumption by 2.2 million With more than 100,000 associates and numerous data pages a year. centers worldwide, we work to better manage our offices’ To help reduce our energy and carbon footprint, we imple- environmental impact. In our employee centers in India mented a Six Sigma building energy-optimization project and around the world, we work to increase the efficiency in order to benchmark the energy efficiency of all of our of our office air conditioning, desktop computers, light- large development facilities. Our goal was to reduce our ing, heating, and electronics. India power consumption to 1.8 kWh/sqft/month in 18 Cognizant Technology Solutions 31
  • 34. global reach: ‘Go Green Anthem’ Inspires Environmental Action PREMKUMAR PANDURANGAM Director of Sustainability A stirring rock song can inspire listeners to a cause. Cognizant associates have their “Go Green” anthem to spark environmental initiatives. Written by the Cognizant Pune rock band, Harmonic Recession, it helps the company spread a message of the “individual’s responsibility towards the environment” across its global offices. Fresh and young in spirit, the “Go Green” anthem encourages people to recognize the planet’s environmental realities. It also adds practical suggestions for associates to follow in their daily lives. The song was played in all company offices to a rousing response. It now is played at every Go Green occasion so associates are quickly mastering the lyrics, which include: In rhythm and rhyme, this is our time, let’s join our hands, here’s what we say: Let’s start a movement the world has never seen. Go Green! Go Green! Go Green!” This initiative and the larger Go Green program are managed by Director of Sustainability Premkumar Pandurangam. Prem, pictured above, leads Cognizant’s efforts to track and reduce its Greenhouse Gas emissions, water consumption and waste. Along with his team, he works to enlist all 100,000+ Cognizant Associates to do their part to reduce their personal impact on the environment through communications, education, events, competitions and other forms of employee engagement and recognition. 32 Cognizant Technology Solutions
  • 35. months, down from 2.1 kWh/sqft/month. We identified best In addition to Cognizant’s major efforts to improve practices used in Cognizant’s most efficient facilities and building energy efficiency, we acknowledge that, as a have rolled them out to other facilities, driving significant busy global company, travel is a major part of our envi- energy efficiency improvements. ronmental footprint. We have placed a significant corpo- rate emphasis on video conferencing and telepresence The energy-optimization project covered all aspects of facilities, using this technology to reduce travel to meet- our infrastructure — office space, utilities, desktop hard- ings and other business-related sessions. To date, with ware, and data centers. Our process was determined and environmental impact in mind, we have deployed more replicable: we identified operational levers to optimize than 500 telepresence and high-definition video units, energy usage and reduce waste. We formed small teams reduced our air travel and, in the process, improved our focused on key energy consuming equipment and ran Six associates’ work-life balance and our collaboration with Sigma Green Belt Projects for HVAC-Chillers, HVAC-Air customers. The telepresence project was so successful Handling Units, Uninterruptable Power Supplies, Lighting that we documented it in a white paper and video available and Generators. at www.cognizant.com/Telepresence-whitepaper and This project also addressed IT infrastructure, focusing on www.cognizant.com/Telepresence-video. desktop hardware (triggering sleep-mode in non-working The Impact of Climate Change hours), server hardware (using virtual servers instead of At Cognizant, we take climate change very seriously. physical servers for new projects) and data centers (con- Climate change may pose operational risk to our facili- solidating data centers). Through these efforts, over the ties located in coastal cities around the world. It could last two years we have achieved 20 percent reduction in also cause disruptions to our operations if severe weather per square-foot and 29 percent reduction in per capita caused by climate change impacts goods and services in energy consumption. our supply chain. An escalation of electricity and transpor- In Cognizant’s annual Carbon Disclosure Project declara- tation costs with fluctuations in the price of hydrocarbon tion, we reported a 7 percent per capita reduction in could also impact our business. 2010, achieved through our Go Green program’s focus on Climate change has provided us an opportunity to reas- several energy-reduction initiatives. As a member of the sess our energy dependence and energy productivity. We former U.S. EPA Climate Leaders program, we set a 25 identified opportunities to conserve energy and improve percent per capita emissions-reduction target between the energy efficiency and productivity of our facilities and 2008 and 2013. We have already exceeded that target and equipment. It is not possible for Cognizant to quantify the are looking to extend it further. Reflecting our efforts, our financial impact of the risks or opportunities associated Cognizant facility in Hyderabad, India won the Tishman with climate change. Speyer Waverock award for the Best Green IT Company in a leased facility. In our quest for energy efficiency, we also We also anticipate opportunities to assist our customers gave Energy Leadership Awards to vendor partners and in being more energy efficient with adoption of green IT facility managers at several of our buildings and campuses. by way of server consolidation, virtualization, cloud com- puting and business process optimization that can result As for environmental management system (EMS) certifi- in reduced materials or energy consumption. cation, we have two large facilities ISO 14001 certified and intend to certify three more large facilities in the next year. Cognizant Technology Solutions 33
  • 36. Cognizant and our associates also have participated in When Cognizant hired its 100,000th employee in December several energy-conservation initiatives in various Indian 2010, we committed to planting one tree per associate. communities. Under Project LULU (Light up Life up), Cog- We have partnered with NGOs to complete the tree nizant’s Green Brigadiers distributed solar lanterns among plantings in early 2011. 100 families in the remote hamlet of Malliamman Durgam, which is not connected by roads or by an electricity grid. Conserving Water Associates also planted 2,500 trees in and around Chennai 2010 was the first year we captured and reported water to make the city greener. And to decrease air pollution, use information at Cognizant. Because we do not use water associates on December 10, 2010, hung up their car keys in our supply chain and the main use is for drinking and and walked, rode bicycles or took public transportation to personal hygiene, we do not see significant opportunity celebrate Car Free Day at Cognizant. for reducing water use, but we will study this data and look for opportunities to conserve water in 2011. In many facilities, we have sewage water treatment plants to recy- cle water for watering landscapes, but do not have flow monitors in place to measure the volume recycled. However, after compiling the data and studying this area, we may identify additional opportunities for water conservation. Cognizant has measured consumption of water pro- cured from external sources for the majority of its India operations. For some facilities, we do not receive water consumption data, so we extrapolated this information based on usage at similar facilities. We chiefly use water for: 1. Utility, including air conditioning, personal hygiene, cleaning, landscaping and domestic purposes 2. Drinking and cafeteria operations Based on a total consumption of about 787,452 kilo-liters of utility water, the average associate uses about 1,074 liters per month at the office. Similarly, based on a total con- sumption of 22,399 kilo-liters of drinking water, the average associate drinks 24.48 liters per month at the office. 34 Cognizant Technology Solutions
  • 37. Helping the Blind Envision New Worlds Mahua Seth, an associate on the Cognizant 2.0 team, learned music from a visually challenged teacher who also ran a residential school for visually challenged children. From a young age, Mahua recognized that these children cherished access to the fantasy world of stories through verbal storytelling. After her classes and during the weekends, Mahua would read to them. Another Cognizant 2.0 team member, Vishnu Priya, had acted as a scribe for visually challenged people since her college days and felt a deep connection to wanting to help. At Cognizant, Mahua and Vishnu realized their shared passion for serving the visually challenged. Together they founded the Third Eye Charitable Trust, which makes non-curriculum reading material accessible in Braille for the visually challenged. In India, only an estimated five percent of printed matter is available in Braille. On January 4, 2011, in conjunction with World Braille Day, ‘Third Eye’ released its first set of 25 Braille titles for children, spanning the genres of fiction, biography, environmental awareness, morality and short stories. Cognizant Technology Solutions 35
  • 38. Energy saved due to conservation and efficiency improvements – 202,673 MWh TOTAL DIRECT AND INDIRECT GREENHOUSE GAS EMISSIONS BY WEIGHT (METRIC TONS CO2E) 2010–2009 2009–2008 2010–2008 GHG Emissions 2010 2009 2008 Change Change Change Scope 1 28,647 21,567 22,981 33% –6% 25% Scope 2 147,288 129,354 123,593 14% 5% 19% Scope 3 46,270 27,738 35,964 67% –23% 25% Total 222,205 178,659 182,538 24% –2% 22% Scope 1 Intensity 0.28 0.28 0.37 0% –26% –26% Scope 2 Intensity 1.42 1.66 2.00 –15% –17% –29% Scope 3 Intensity 0.44 0.36 0.58 25% –39% –24% GHG Intensity 2.14 2.29 2.96 –7% –23% –28% CO2E Emissions computed using The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) published by the World Resources Institute. EMISSIONS OF OZONE DEPLETING SUBSTANCES BY WEIGHT (METRIC TONS) HFC Weight HCFC Weight 134a 1 .6 1 MT R–22 4.54 MT 407C 0.60 MT 125 0.07 MT IMPACT OF TRANSPORTING MEMBERS OF THE WORKFORCE (METRIC TONS CO2E) 2008 % Reduction Business Travel Related Emissions 2010 2009 (baseline) from baseline Scope 3 Intensity MT per associate 0.44 0.36 0.58 24% ENERGY CONSUMPTION (MWh) Type of Energy Usage Direct energy consumption – 100% from use of non–renewable diesel fuel 26,961 MWh Indirect energy consumption – 100% from purchase of non–renewable electricity 193,161 MWh 36 Cognizant Technology Solutions
  • 39. Cricket for Charity 2010 Anyone for cricket — and charity? Cognizant associates certainly were in the mood for that combination on a warm Saturday in September 2010. They participated in or watched the second annual Cricket for Charity 2010 in Hartford, Conn., a fundraiser hosted by Cognizant Senior Vice President Ben Bengtson, head of the Insurance practice, and by five major insurance companies in the New England area. Eight teams competed against each other in a knock–out format to decide the champions, and the teams included the CognizanTrav Huskies, who won the championship match against a team from Massachusetts Mutual Life Insurance Company. More than 500 people attended the event, enjoying many family- and child-based activities. A disc jockey played live dhol, a traditional Indian percussion instrument, and upbeat music cheered the teams. Throughout the day, raffles were conducted with generous donations. The fundraiser collected more than $10,000 for United Way. Cognizant Technology Solutions 37
  • 40. Responsibility at Work 38 Cognizant Technology Solutions
  • 41. At Cognizant, our primary asset is human capital; In addition to the formal learning in classrooms, Cognizant our 100,000-plus associates essentially determine Academy brings learning to our employees’ desktops. We our economic performance. So we commit much use multi-modal methods, such as content-management attention to attracting and retaining high-quality systems, blogging, Wikipedia, video-based training and dis- tance education/higher education, as well as Technology- associates and nurturing a culture of service, caring, Based Training. In 2010, over 7.1 million hours of training and passion. were provided, with the average employee receiving 84 While our headquarters are in the U.S., the majority of our hours of training. Associate-level employees received an operations are in India where we enjoy high standing as a average of 103 hours of internal training and Management “local” player. Most of our senior managers have exten- received an average of 37 hours of internal training. These sive international business experience and educational numbers do not include hours of training at external backgrounds. As an example, Francisco, our CEO, was born events such as workshops, conferences and seminars. in Kenya, educated in Asia and the United States and has Our primary focus in 2011 includes ensuring a robust lived throughout the world. As for our global reach, we learning enablement at crucial career junctures such as maintain more than 35 regional sales and client-relation- transitioning from college to corporate, becoming a first- ship offices in 19 countries and more than 50 development time lead, changing to a different geography, and working centers in 24 cities and eleven countries. directly with the customer for the first time. We also in- Training and Professional Development tend to identify opportunities with account teams where We consider our training and development capacities the learning can make a strong impact by penetrating and best in the IT industry, emphasizing process and method- strengthening many more key accounts in 2011 and 2012. ology as well as client satisfaction. Our staff turnover has typically been favorable when compared with the industry. For 2010 our turnover rate was at 18.3 percent. We con- sistently receive the highest employee-satisfaction marks among software companies with operations in India, where we are among the largest technology employers. We are committed to continuous learning, giving our asso- ciates opportunities to stay current with leading-edge technologies and to develop communication skills so they can perform their roles effectively and efficiently. Our learning programs are conducted through Cognizant Academy, our in-house training center. It offers many conventional and leading-edge educational programs for employees at all levels. Cognizant Technology Solutions 39
  • 42. global reach: Cognizant Women's Initiative COLLEEN DOHERTY Director, Talent Management When a company grows rapidly, its infrastructure often is slow to catch up. That’s what happened at Cognizant, which in 2010 made Fortune’s fastest-growing companies list for the eighth year in a row. Now its leadership is moving swiftly to mesh its infrastructure with its workforce by focusing on matters such as engaging female employees. In November 2010, Colleen Doherty, a recent recruit from Wall Street to Cognizant’s Talent Management staff, established the company’s global Women’s Initiative to help attract, engage and retain more female talent. Women comprise about one-third of the company’s employees, and Colleen is establishing, among other initiatives, an interactive forum for women to connect, share ideas and best practices. Thanks to the company’s global collaboration platform, dubbed C2.0, women will be able to blog, tweet and post relevant articles, data and events on the internal communications site. She also is partnering with outside organizations to identify successful initiatives and practices around women in the workplace and overall diversity efforts. “Over the next few years, we expect this initiative to increase the number of women we have in leadership roles around the globe,” says Colleen. A survey of Cognizant women (who average 28 years of age) by the Women’s Initiative found they want more job flexibility and an improved work-life balance. Colleen, a mother of two preschoolers herself, is now working to identify specific programs or assistance to help deliver on those two issues. She is expecting that by 2012, the Women’s Initiative will have gotten well off the ground and will have begun making a significant positive impact for women at Cognizant. 40 Cognizant Technology Solutions