Bagmane Group is likely to acquire the office property of US-based tech giant Cognizant Technology Services in Chennai for about Rs 800 crore, according to reports. The property, which has served as Cognizant's India headquarters for over 20 years, spans 13.39 acres and offers 560,000 square feet of office space along Chennai's thriving IT corridor.
Once the acquisition is complete, there is potential to develop up to 3 million square feet of additional space, making it a significant opportunity for expansion. The deal is in its final stages and is expected to receive board approval soon.
This transaction is part of Cognizant's ongoing restructuring strategy to reduce costs by $400 million over the next two years as part of its 2023 plan. As part of this strategy, the company is shedding 11 million square feet of office space globally. In 2023 alone, Cognizant reduced its Chennai office space by 1.15 million square feet, reflecting its drive to optimise operational efficiency.
As much as 70 per cent of Cognizant's global workforce of about 337,000 is based in India. In India, the company has a strong presence in Bengaluru, Bhubaneswar, Chennai, Coimbatore, Delhi-NCR, Hyderabad, Indore, Kochi, Kolkata, Mangaluru, Mumbai and Pune. The move is part of Cognizant's broader strategy to streamline operations, reduce costs, and adapt to evolving market demands despite facing workforce reductions and slight revenue fluctuations.
