Cognizant Technology Solutions is set to invest ₹15.82 billion ($182.76 million) in the development of a new campus in Visakhapatnam, Andhra Pradesh. According to an official statement from the state government released on Friday, the campus is expected to generate approximately 8,000 jobs upon becoming operational in March 2029.
The announcement underscores a growing trend among global IT service providers to expand into India’s tier-2 cities. Cognizant’s decision follows Tata Consultancy Services’ recent commitment to establish a ₹13.70 billion campus in the same city, projected to create 12,000 jobs.
The initiative aligns with Cognizant’s broader strategy to reduce real estate expenses by shifting focus from major urban centres to emerging hubs. In May 2023, Chief Executive Ravi Kumar S revealed plans to relinquish 11 million square feet of office space globally, predominantly in India’s largest metropolitan areas, while investing in alternative locations like Visakhapatnam.
This investment also comes at a time when the global IT sector, valued at $283 billion, continues to respond to economic pressures by streamlining operations. Companies are adopting measures such as asset monetisation and postponing salary adjustments to manage costs amid fluctuating demand.
Despite these headwinds, Cognizant has recently reported positive momentum. In the previous quarter, the Teaneck, New Jersey-headquartered firm raised its annual revenue guidance and surpassed expectations, driven by growing interest in AI-enabled IT services. The company now anticipates full-year 2025 revenue in the range of $20.5 billion to $21.0 billion, up from the earlier forecast of $20.30 billion to $20.80 billion.
Cognizant has not issued an official comment on the Visakhapatnam development at this time.
-Reuters
