BENGALURU: Cognizant Technology Solutions will invest ₹15.82 billion (approximately $182.76 million) to establish a new campus in Visakhapatnam, Andhra Pradesh, creating around 8,000 jobs, as announced by the state government on Friday.
Operations are set to begin in March 2029, according to a press release from the Andhra Pradesh government.
Cognizant has yet to respond to requests for comments.
This announcement follows Tata Consultancy Services’ recent plans to develop a ₹13.70 billion campus in the same city, which is expected to generate 12,000 jobs.
Such moves are part of Cognizant’s strategy to optimize real estate costs. In May 2023, CEO Ravi Kumar S indicated the company would offload 11 million square feet of office space worldwide, primarily in India’s major cities, while focusing on investments in tier-2 cities.
Globally, IT companies, including those in India’s $283 billion sector, are adopting cost-cutting measures, such as monetizing real estate assets and postponing wage hikes amid uncertainty in demand.
Recently, the Teaneck, New Jersey-based firm raised its annual revenue forecast and surpassed first-quarter results due to heightened demand for AI-enhanced IT services. Cognizant anticipates annual revenue to reach between $20.5 billion and $21.0 billion by 2025, up from an earlier estimate of $20.30 billion to $20.80 billion.
