According to analysts, the restructuring of its digital business unit is a response to the changing nature of digital transformation deals and will assist Cognizant Technology Solutions manage attrition levels.

As part of its restructuring initiative, which involves joining its Digital Business and Technology (DB&T) and Digital Business Operations (DBO) groups to form four new integrated practices, Cognizant is promoting two executives.

Rob Vatter will head enterprise platform services as part of the announced restructuring, while Annadurai Elango will oversee core technology and insights. Elango and Vatter will become members of Cognizant's executive committee and will be under the direct supervision of CEO Brian Humphries.

In the medium to long term, the merger will give employees, particularly those stationed in India, access to more demanding and exciting career opportunities.

According to Phil Fersht, chief executive, HfS Research, Nambiar's total focus on the India job is to reduce attrition, enhance Cognizant's reputation as an employer of choice in India, and concentrate on the merger.

The new organizational design of the Teaneck, New Jersey-based corporation fits with the direction the sector is taking. Cognizant may become more nimble by segmenting the digital company into four subgroups, according to Peter Bendor-Samuel, CEO of Everest Group.

The definition of digital was recently altered by the corporation to take into account pricing, growth priorities, and digital capabilities.

According to the revised definition, 48 percent of Cognizant's income for the 2021 fiscal year comes from digital. Digital revenue increased by 20 percent yearly in the first quarter, making up half of the company's $4.8 billion total revenue.

Many IT service providers have changed their organizational structure to focus more on the consumer.

“It is more critical than ever to align the delivery organizations with the market-facing teams. Previously, Cognizant's delivery and client-facing teams were operating separately. This merger allows staff in delivery roles to get more involved in higher-value business activities and the client-facing staff to get more involved in delivery issues,” says Fersht.

It doesn't use a segmentation-based strategy. It is a customer journey-based strategy, which, in our opinion, is a first in the sector or perhaps more broadly, according to TCS Chief Executive Rajesh Gopinathan.