Cognizant Technology : 2023 Annual Report 2023 Annual Report

2023 Annual Report

Move with purpose

To our shareholders, associates, clients and partners,

In 2024, we celebrate our 30th year as a digital and technology services business that is built on industry expertise, collaboration and innovation. Cognizant's long-standing roots have allowed us to help our clients through pivotal moments over these three decades-from the emergence of cloud to digital platforms and now to generative artificial intelligence (gen AI).

As I begin my second year as CEO, I see us in a far stronger position than when I wrote to you last year, one that sets us up to take our strategy, which intersects technology and industry, to the next phase. We have invested in talent, platforms and innovation to strengthen our capabilities, help our clients navigate uncertainty and embrace the opportunities ahead.

In 2023, we focused on the following three capabilities to position

the company for success:

Deeper industry expertise. During the year, we strengthened our vertical capabilities by increasing investments in industry platforms, creating a dedicated industry solutions group and sharpening our focus on consulting- led transformation and partnerships, including with hyperscalers and next- generation software-as-a-service(SaaS) providers. One example is our strategic partnership with ServiceNow to advance the adoption of AI-drivenautomation across industries to help solve complex problems and enhance experiences for our employees and customers.

Closer collaborative innovation. We also drove deeper into understanding our clients' businesses from their perspectives. To do this, we launched an internal grassroots idea incubator called Bluebolt that capitalizes on the scale and diversity of our teams and our belief that the drive

2023 Cognizant Annual Report		3

for innovation lives within everyone. We invited all employees, regardless of role or title, to think as big as possible by participating in Bluebolt, providing them a platform to challenge the status quo.

Since Bluebolt's launch, our employees have developed more than 115,000 ideas, 22,000 of which we have already implemented and we have more to come, helped in part by our new Innovation Assistant, a gen AI-powered tool we developed with Microsoft. These projects have already produced a positive economic impact for our clients and for Cognizant.

Broader engagement flexibility. Our culture of client centricity focuses on partnering with clients to better align our offerings

with their most relevant needs, reinforcing our belief in our flexible operating model.

By co-creating solutions with those clients, we help them build their own technology muscle. For example, we signed an agreement with biopharmaceutical leader Takeda to support its transformation

of its infrastructure and application management approaches. This kind of successful co-creation and growth is rewarding for our employees and clients in a self-reinforcing virtuous cycle.

The effective execution of these three business imperatives helps us get closer to our clients and helps them better understand their own customers' challenges.

Cognizant's support has complemented our continuous innovation and digital growth. This continued relationship will enable Takeda to accelerate our digital transformation journey, modernize our operational model, and speed time to market."

Sanjay Patel

Global Head of Innovation Capability Solutions, Data, Digital & Technology at Takeda

4 2023 Cognizant Annual Report

Increasing our value to clients

Our clients shared their feedback in our 2023 client Net Promoter Score (NPS) survey, which significantly improved year over year, earning us our highest-ever NPS result. Clients remarked that our leadership, account management and delivery are especially important to them, and the survey results reflect our progress in these areas. Innovation and thought leadership are also critical priorities for our clients, reaffirming our investments in Bluebolt and our co-innovation labs.

As we drive to win, we understand that building momentum requires successful execution against Cognizant's three strategic priorities:

• Accelerating revenue growth
• Becoming an employer of choice in our industry
• Simplifying our operations

Accelerating revenue growth

In 2023, we pivoted our strategy and operations towards the goal of recapturing our place as a market leader in growth. We improved our overall bookings growth last year, with full-year bookings growth of 9%, driven by strong growth in

large deals and new business.

An important element of our strategy is winning larger deals and accelerating Cognizant's commercial momentum, which forms the foundation for improved revenue growth and forward-planning visibility. During 2023, we saw strong total contract value (TCV) growth among large deals, with TCV for deals above $100 million increasing 42% year-over-year.

We've shown pronounced deal strength in healthcare, including Horizon Healthcare's choice of Cognizant to manage its complex claims processing, provider configuration and enrollment services for more than one million of its members.

In addition, Gilead Sciences chose Cognizant to manage its global IT infrastructure and lead digital transformation initiatives designed to enhance overall client experience and

"Through this collaboration, Cognizant has provided critical expertise to progress our digital transformation journey while enabling more stable, more secure operations. This has allowed us to further advance research and commercialization of transformative treatments for some of the world's most challenging diseases. We look forward to expanding this partnership to advance to the next phases of our capability roadmap."

Marc Berson

Senior Vice President and Chief Information Officer at Gilead Sciences

help Gilead get products to market faster. This is an expansion of an existing Gilead- Cognizant partnership.

We're also succeeding across other industries. Earlier this year, Technicolor Creative Studios-which brought "The Wizard of Oz" and countless other films, television shows and games to colorful life- chose Cognizant as its global IT and Digital Transformation partner. Under the five-year agreement, Cognizant will provide an end- to-end managed service for Technicolor's users, applications and infrastructure.

6 2023 Cognizant Annual Report

We selected Cognizant as it was important for us that we partner with an organization that understands our industry and comes with the right mindset to collaborate on a challenging transformation that brings mutual success. We look forward to collaborating with Cognizant as we bring that vision to life."

Robin Underwood

Head of Enterprise Technology at Technicolor Creative Studios

We believe this growing cross-industry strength is a result of reorienting our teams to large-deal demand generation and execution across all service lines while building our ability to seed, shape and sell large deals. Moreover, we made progress industrializing delivery with automation and productivity tools to create repeatable solutions and enable a consistent and efficient delivery operating model for large deals.

We have worked to establish a distinctive position developing industry- specific platforms for our clients. These include Cognizant TriZetto, designed to drive administrative efficiency and improve quality of healthcare; our Shared Investigator Platform, built to streamline clinical trials; and Asset Performance Excellence, which enables the remote monitoring and predictive maintenance of assets.

We see a future where modern business is powered by artificial intelligence, and we believe our ongoing investments in gen AI capabilities help put Cognizant in position to be a leader in driving gen AI-led transformation.

We are currently building platforms and infrastructure to advance the power of gen AI foundation models to enterprise grade. At this scale, our work includes building accuracy in output to reduce false or misleading information known as "hallucinations," continuously reinforcing learning and testing, incorporating transparency and accountability, and iteratively driving performance optimization. Through our platforms, we are also managing, governing and optimizing gen AI initiatives to help ensure the responsible use of this nascent technology.

2023 Cognizant Annual Report		7

In 2023, we launched a deliberate investment strategy to support our gen AI capabilities spanning people, platforms, partnerships, and mergers and acquisitions. We believe gen AI will drive tomorrow's economy and society. This belief is underscored by our recent study in partnership with Oxford Economics, which predicts gen AI could inject up to $1 trillion into the US economy over 10 years. Our joint research also predicts that 90% of jobs will be disrupted in some way by this technology.

Gen AI could inject up to

$1 trillion into the US economy over 10 years and 90% of jobs in the US will be disrupted in some way by this technology.

Cognizant Research in partnership with Oxford Economics, "New Work, New World"

These findings have helped inform and reaffirm our work preparing and dissecting the anatomy of tasks, occupations and work for key operational roles across all our clients' industries. We are expanding this exercise to all operations jobs across our key client industries, measuring AI exposure scores and proposing the AI tooling needed to drive significant transformation and repurpose tasks and jobs in the gen AI age.

In healthcare, for example, we see a robust pipeline of opportunities to drive AI-led transformation. In 2023, we expanded

a partnership with Google where we are building on Google Cloud's gen AI technology to tackle highly complex healthcare administration tasks across provider, patient and administrative users. We sharpened this focus in early 2024, when we joined with Microsoft through our TriZetto platform to infuse gen AI into healthcare administration, helping to increase productivity and efficiency for healthcare payers and providers while improving care for patients.

We continue to push deeper into designing gen AI offerings for industry solutions and cross-industry use cases under themes such as productivity enablement, transforming core processes, improving the customer and employee experience, innovating products at clock speed and developing software.

We also introduced several new AI solutions and platforms in 2023. These include Cognizant Neuro® IT Operations, an AI-led platform built to reduce the complexity and costs of enterprise infrastructure; Cognizant Skygrade,™ a cloud orchestration platform designed to help clients rapidly transition to modern cloud-native architectures; and Cognizant Neuro® AI, a new platform designed to speed clients' adoption of gen AI by quickly building AI enablement use cases tailored to their businesses. We also recently launched Cognizant Flowsource,™ a gen AI-enabled platform that tracks and expedites every stage of the software delivery lifecycle.

To provide clients with best-in-class industry solutions based on AI systems, we expanded

8 2023 Cognizant Annual Report

our alliance with Google Cloud, which includes launching the Cognizant Google Cloud AI University-a program that aims to train 25,000 Cognizant professionals on Google Cloud AI technologies. We are offering this program to our clients as well.

We have expanded our relationship with Microsoft to deliver industry solutions and enable AI-led business transformation. We are broadening the focus of our Microsoft Center of Excellence in AI and other next- gen technologies to drive competencies across architecture, technology leadership, value delivery tools and enablement.

Innovation inside Cognizant is happening at an accelerated pace. In addition to our global co-innovation AI lab network, in March 2024, we launched Cognizant Advanced AI Labs, where our most sophisticated researchers can research, design, enable and showcase advanced applications. This effort contributes to AI-augmented business decision-making built on a foundation of research and Cognizant's own intellectual property. This lab joins new AI co-innovation labs that we launched in 2023 in New York, Bangalore, Dallas and London to provide clients with an immersive experience as we help drive the art of the possible with them.

We are also utilizing our acquisition strategy to further support our AI investments. In early 2024, we acquired Thirdera, an Elite ServiceNow partner that specializes in solutions for the ServiceNow platform. Adding Thirdera brings an on-and-near-shore global presence to our

own ServiceNow Business Group and supports our strategy to rapidly scale this partnership in the years ahead.

Becoming an employer of choice

We believe that when our employees feel valued and respected, so do our clients-and it's a combination that helps differentiate us. To this end, our value proposition to our teams includes the prospect of internal mobility, the opportunity to work on cutting-edge technology and access to lifelong learning.

This opportunity to learn and develop was one of the highest-scoring engagement drivers in Cognizant's 2023 People Engagement Survey, confirming our strong investment in our employees' continuous training and reskilling. In 2023, 90% of our global workforce invested in learning, with 270,000 of our employees acquiring at least one new skill or proficiency and 88,000 completing courses on AI and gen AI. We have encouraged our employees to incorporate AI into their thinking and skilling and to take advantage of our company's AI investments and infrastructure to prepare for a future of work shaped by this new era of technology.

Our 2023 People Engagement Survey showed meaningfully improved engagement over the previous year and we saw significant increases in three areas strongly correlated to engagement: Would you recommend Cognizant as a great place to work? Are you excited about Cognizant's future? And do you plan to

2023 Cognizant Annual Report		9

10 2023 Cognizant Annual Report