Cognizant Technologies, a software services firm, plans to sell its office properties in Hyderabad and Chennai as part of its strategy to become less reliant on assets and focus on other real estate areas.
The company aims to sell its 10-acre site in Gachibowli, Hyderabad, and a 14-acre site in Siruseri, Chennai, as part of a broader plan to save $400 million in two years by reducing costs, including giving up 11 million square feet of office space.
“Cognizant is reassessing its real estate and has let go of some leased properties in certain places. They’ve also renegotiated rents and downsized assets,” said sources familiar with the matter.
The Hyderabad campus covers 2.5 lakh sq. ft. of office space on 10 acres of government-allocated land.
Meanwhile, in Chennai, the company’s campus spans 600,000 sq ft and is the largest facility globally, initially provided on lease by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT).
Additionally, Cognizant downsized its upcoming Hyderabad property lease from 1.5 million sq ft to 1 million sq ft, renegotiating the rent at around Rs 57 per square foot with the landlord.
In April, the firm relinquished 1.15 million square feet of office space in Chennai.
Cognizant responded, mentioning their strategy to streamline workspaces worldwide and in India, focusing on Tier 2 cities, post-pandemic hybrid work, and cost-saving measures to invest in growth opportunities and employees.
The company also vacated office spaces in Chennai’s DLF Cybercity SEZ (500,000 sq ft) and Ramanujan IT SEZ (650,000 sq ft).
Notably, several tech giants globally, including Meta, Accenture, Amazon, Microsoft, and Alphabet, have downsized, affecting their Indian office presence.
The technology sector’s share of Indian office space reduced from 40% in Q2 2022 to 26% in Q2 2023, while Global Capability Centres, financial services, and engineering companies have shown increased demand.
(Credits: ET Realty)
Also read: Air India Leases 6.2 Lakh Sq Ft Commercial Space in Gurugram at ₹90 Crore Annual Rent