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Topics: Management, Organization, Strategic management Pages: 3 (1264 words) Published: December 11, 2014
Companies & Industries

The Issue: For Cognizant, Two's Company
January 17, 2008
-------------------------------------------------------------------------------The tech-services provider found an approach, called “two in a box,” that eased the headaches of managing—and being managed—from afar.

Cognizant Technology Solutions' corporate infancy was similar to that of many outsourcers. The tech-services provider got its start helping companies resolve potential Y2K flare-ups and other relatively simple application maintenance services. As a result, during the company's early years in the mid-1990s, despite the fact that it's based in Teaneck, N.J., Cognizant had an organizational structure that was India-centric. Teams in other parts of the world reported to

managers in India, who also
supervised the army of
software engineers solving
the basic issues on the
ground.
But in the years that
followed, Cognizant, which
now has $1.4 billion in
annual revenues, began to
get more sophisticated and
more complex requests
from customers. To be sure
of meeting their needs, CEO
Francisco D'Souza, then
chief operating officer, and
his colleagues knew they
would need to revamp the
organization, putting power
Figure 1 Description of TIB from Cognizant Wesbite
in the hands of the
managers who were closest
to the customers. “We had to find a new way of organizing the company along the customer axis,” says D'Souza.

While the redesigned reporting structure helped improve Cognizant's responsiveness to customers, it wasn't working for Cognizant's employees. The company's managers, who were mostly at customers' locations in the U.S., were strung out by the harried schedule. After putting in a full day's work with clients at home, they'd stay up late at night helping to troubleshoot projects in India and managing the careers of people there. And no matter how diligent the managers were, they were still on the other side of the world, and workers in India felt...
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