Cognizant Announces Portfolio Analysis and Rationalization Service to Bring Down Costs of IT Systems.

Business Editors

TEANECK, N.J.--(BUSINESS WIRE)--Dec. 3, 2002

Cognizant Technology Solutions Corporation(NASDAQ:CTSH):

Clients Can Cut Costs While Upgrading Performance

and Consolidating Systems

Cognizant Technology Solutions Corporation (Nasdaq: CTSH), a leading application management and e-business solutions provider, today announced a new Portfolio Analysis and Rationalization offering to help clients cut costs and boost system performance.

"Cognizant's Portfolio Analysis and Rationalization service helps organizations maximize their savings by quickly identifying all systems suited to offshore outsourcing and then further reducing costs and processes by eliminating redundant systems," said Deb Mukherjee, CTO for Cognizant. "Cognizant is the only offshore company with this type of high-end service, and Blue-chip companies are increasingly turning to us for IT strategy work."

Cognizant's unique methodology and processes help customers bring down costs by identifying which systems are redundant, and which applications are delivering the maximum value to the business. The service can help customers determine which applications are worth retiring, and which need further work to run more efficiently and boost performance. Customers can use Cognizant to rationalize the systems through re-engineering, consolidation, and re-platforming, while moving to offshore outsourcing.

Cognizant's deep business and technology experience has helped companies solve real IT problems by reducing the number of systems and cutting the total cost of ownership. Cognizant can also help companies redirect where programming resources are used and on which projects, helping clients better align budgets with what really needs to get done. For example, Cognizant can make sure that high end staff gets used on strategic projects that deliver the most value to the business.

"Sallie Mae has made several acquisitions within the last twenty-four months, resulting in multiple and disparate systems," said Keith Riccitelli, director of IT for Sallie Mae, the nation's leading provider of education funding. "Recently we took advantage of Cognizant's new service, quickly inventorying our capabilities and identifying opportunities for cost efficiencies and performance improvements. In addition, Cognizant helped Sallie Mae archive a large knowledge-base that is frequently tapped in ongoing decision-making processes."

About Cognizant Technology Solutions

Cognizant Technology Solutions Corp. (Nasdaq: CTSH) is a leading provider of custom information technology design, development, integration and maintenance services. Focused on delivering strategic information technology solutions that address the complex business needs of its clients, Cognizant provides applications management, development, systems integration and business process outsourcing services through its onsite/offshore outsourcing model.

Cognizant's more than 5,600 employees are committed to partnerships that sustain long-term, proven value for customers by delivering high-quality, cost-effective solutions through its development centers in India and Ireland, and onsite client teams. Cognizant maintains P-CMM and SEI-CMM Level 5 assessments from an independent third-party assessor and was recently ranked as the top information technology company in Forbes' 200 Best Small Companies in America and in BusinessWeek's Hot Growth Companies. Further information about Cognizant can be found at http://www.cognizant.com.

This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Cognizant believes the expectations contained in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. This information may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Potential risks and uncertainties that could cause or contribute to differences include, but are not limited to: (i) the significant fluctuations of Cognizant's quarterly operating results caused by a variety of factors, many of which are not within Cognizant's control, including (a) the number, timing, scope and contractual terms of application design, development and maintenance projects, (b) delays in the performance of projects, (c) the accuracy of estimates of costs, resources and time to complete projects, (d) seasonal patterns of Cognizant's services required by customers, (e) levels of market acceptance for Cognizant's services, (f) potential adverse impacts of new tax legislation, and (g) the hiring of additional staff; (ii) changes in Cognizant's billing and employee utilization rates; (iii) Cognizant's ability to manage its growth effectively, which will require Cognizant (a) to increase the number of its personnel, particularly skilled technical, marketing and management personnel, (b) to find suitable acquisition candidates to support geographic expansion, and (c) to continue to develop and improve its operational, financial, communications and other internal systems, in the United States, India and Europe; (iv) Cognizant's limited operating history with unaffiliated customers; (v) Cognizant's reliance on key customers and large projects; (vi) the highly competitive nature of the markets for Cognizant's services; (vii) Cognizant's ability to successfully address the continuing changes in information technology, evolving industry standards and changing customer objectives and preferences; (viii) Cognizant's reliance on the continued services of its key executive officers and leading technical personnel; (ix) Cognizant's ability to attract and retain a sufficient number of highly skilled employees in the future; (x) Cognizant's ability to protect its intellectual property rights; (xi) the concentration of Cognizant's operations in India and the related geo-political risks of local and cross-border conflicts; (xii) terrorist activity, the threat of terrorist activity, and responses to and results of terrorist activity and threats, including, but not limited to, effects, domestically and/or internationally, on Cognizant, its personnel and facilities, its customers and suppliers, financial markets and general economic conditions; (xiii) general economic conditions; and (xiv) uncertainties regarding the satisfaction or waiver of the conditions to the IMS exchange offer, and the effects on the IMS exchange offer of market conditions, economic conditions, tax treatment, regulatory and legal requirements and the results of negotiations between Cognizant and IMS Health. Such forward-looking statements include risks and uncertainties; consequently, actual transactions and results may differ materially from those expressed or implied thereby.

Additional information on factors that may affect the business and financial results of the companies can be found in filings of the companies made from time to time with the Securities and Exchange Commission.