After TCS, Cognizant gets Andhra land for less than a rupee; to invest Rs 1,582 Crore in Vizag IT campus

Tech giant Cognizant will set up a world-class IT/ITES campus in Andhra Pradesh's Visakhapatnam, investing around Rs 1,582.98 crore. 

Cognizant invests in Andhra Pradesh

The said project is expected to generate over 8,000 jobs, as reported by the Times of India.

Incidentally, a few months back, the Chandra Babu Naidu-led Andhra Pradesh government made a simiThe Andhra Pradesh government reportedly decided to allocate land at just 99 paisa to Cognizant IT solutions for this project. lar deal with Tata Consultancy Services (TCS), selling 21 acres of land for 99 paise each.

The bold move indicates that the state is aiming to establish itself as a tech hub in India.

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Tech giant's big plan

Reportedly, Cognizant has proposed a huge investment in Visakhapatnam by asking for 21.31 acres of land at Kapuluppada under the Visakhapatnam Metropolitan Region Development Authority (VMRDA).

The announcement comes just months after India's tech leader, Tata Consultancy Services, disclosed plans for a 13.70 billion rupee campus in the same city, which is expected to generate about 12,000 jobs.

With this move, Cognizant aligns its strategy to optimise real estate costs. In May 2023, Chief Executive Ravi Kumar S said the firm would relinquish 11 million square feet of office space globally, especially in India's largest cities, while investing in tier-2 cities. 

Globally, IT companies, including those in India, are taking cost-cutting measures such as monetising real estate assets and slowing down salary increments amid demand uncertainty.

Cognizant is targeting 2025 annual revenue between $20.5 billion and $21.0 billion, compared to the previous outlook of the midpoint of $20.30 billion to $20.80 billion.

Cognizant plans to begin commercial operations by March 2029, with the entire project being 100% self-funded, indicating the MNC’s long-term commitment to Andhra Pradesh.

This project not only marks Vizag as a key destination for IT investments but also makes it a potential tech hub in India.

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