Offshore outsourcer Cognizant Technology Solutions scored a coup Wednesday, when a customer agreed to announce a deal in public.
The furor over U.S. jobs sent abroad largely has hushed corporations using offshore outsourcing to handle technology tasks. But IndyMac Bank, a Los Angeles County savings and loan institution, was willing to broadcast its expanded relationship with Teaneck, N.J.-based Cognizant. Cognizant, most of whose employees are in India, is now handling application development, infrastructure outsourcing, business analysis and other tasks for IndyBank.
"Cognizant brings a broad suite of capabilities to meet our needs and has become a trusted partner," Mark Nelson, executive vice president at IndyMac, said in a statement. "We are very happy with the relationship and have expanded it more rapidly than originally anticipated. Cognizant's onshore / offshore delivery model coupled with their high quality personnel has allowed us to deepen the relationship quickly and accelerate development initiatives that are key to maintaining our competitive edge."
Evidence suggests U.S. corporations are continuing to ship work overseas. So IndyMac's public disclosure is, in a way, a welcome move. One wonders if its customers will praise or punish it for its candor.
Meanwhile, Cognizant is expanding by leaps and bounds. The company's 2004 revenue soared 59 percent to $568.7 million. It forecast revenue of at least $845 million this year, and is recruiting 7,200 employees, on top of its current headcount of 15,300.
Most, but not all, of the new hires are likely to be in India. The company hasn't specified how many new staff will be added in the United States versus India versus Europe. But two-thirds of the current employees are in India, with about one-third of the staff in the United States and Europe at client sites, a company spokesman said. "Preserving that ratio would be a reasonable expectation," he said.