Cognizant developing Brazil delivery center

Tuesday, February 15, 2011

US IT services firm Cognizant (Nasdaq: CTSH) is looking to strengthen delivery center capabilities in Brazil this year, the company's country manager for Argentina, Cristián Argüello, told BNamericas.

Argüello emphasized that Cognizant already has people on the ground in São Paulo, but noted that the company wants to beef up capabilities in that locale.

"In Brazil, we already have a delivery operation; we are strengthening it and turning it into a proper delivery center," he said. "We have significant operations in Brazil through work that we do in the country with some of our global clients. ... Initially today, they are traditional IT services that we are offering."

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Cognizant saw its Latin American revenues rise 40% last year, hurdling previous projections of 20% growth. Argüello said regional operations could potentially post similar sale advances this year, especially as infrastructure outsourcing and BPO business for financial and pharmaceutical clients take hold.

At the same time, Cognizant is scurrying to stay ahead of inflationary pressures in Argentina, which is the location of the company's main Latin American delivery center.

"It's an area that we have to follow closely. We have to seek cost improvements in infrastructure, human resources and the services that we offer," he said. "I wouldn't describe it as a threat, but rather as a future business risk."

The full interview with Cristián Argüello can be read in this week's Information Technology Perspectives, for subscribers only.