Software services giant Cognizant has appointed real estate management firm JLL as an adviser to find buyers for leasehold land tied to its globally largest facility by area located in Chennai, according to three people familiar with the matter.
The move to exit its Siruseri, Chennai facility comes after Cognizant in May unveiled a restructuring plan to cut costs by $400 million in two years, including giving up 11 million square feet in office space, or around 80,000 seats.
“This (plan to rationalize workspaces) enables us to invest in collaboration spaces in Tier 2 cities while creating structural savings for the future that we can invest in our people and growth opportunities,” the company told Reuters by email.
Teaneck, New Jersey-based Cognizant, which has two campuses in the facility owned by the State Industries Promotion Corporation of Tamil Nadu, holds a long-term lease on the land which it plans to sell, one of the sources added.
The campuses sit on land spanning over 49 acres having 16,500 seats, according to the company’s presentations done for green energy certifications.
Industry watchers gave the move a thumbs-up.
It is an attempt “by Cognizant and other IT firms to decentralize their talent models to lower-cost locations,” said Peter Bendor-Samuel, CEO at research firm Everest Group. Reuters