Cognizant Technology Solutions has announced a significant ₹1,583 crore (USD 182.76 million) investment to set up a new IT and ITES campus in Visakhapatnam, Andhra Pradesh.
According to a statement from the Andhra Pradesh government, the facility will create approximately 8,000 new jobs and is slated to begin commercial operations by March 2029. The project will be entirely self-funded by Cognizant.
The state government has approved the allotment of 21.31 acres of land in Kapuluppada under the Visakhapatnam Metropolitan Region Development Authority (VMRDA) at a nominal lease rate of just 99 paise.
The development closely follows Tata Consultancy Services’ ₹1,370 crore investment in the same city, aimed at generating 12,000 jobs.
This move also aligns with Cognizant CEO Ravi Kumar S’s broader real estate optimization strategy, which involves relinquishing 11 million sq. ft. of office space—mainly across major metros—and redirecting capital to cost-effective cities like Visakhapatnam.
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The expansion comes amid a broader trend within India’s USD 283 billion tech sector to focus on cost containment via real estate monetization and wage moderation, as firms respond to uncertain global demand.
Despite these macroeconomic headwinds, Cognizant recently raised its 2025 revenue guidance to USD 20.5 billion–USD 21.0 billion, up from the previous midpoint of USD 20.30 billion–USD 20.80 billion, buoyed by a strong Q1 performance and increasing demand for AI-enabled IT services.
