Cognizant Technology Solutions is preparing to divest its Chennai headquarters, marking the end of an era for the company that has established its presence in India for over two decades. The property, a sprawling 15-acre campus with 400,000 square feet of office space, is located in the bustling Okkiyam Thoraipakkam area along Chennai’s thriving IT Corridor. Industry estimates suggest that the sale could yield between ₹750 crore and ₹800 crore.
To facilitate this transition, Cognizant has engaged international property advisory JLL to oversee the sale process. Currently, discussions with potential buyers, including notable local developers such as Baashyaam Group and Casagrand, are underway, although no agreements have yet been finalised. Cognizant aims to complete the transaction and vacate the premises by December 2024, after which the company’s new Indian headquarters is likely to be established at the MEPZ campus near Tambaram on GST Road. This move is part of a broader strategy to consolidate operations into fewer owned properties. The Thoraipakkam campus holds historical significance as Cognizant’s first fully owned site in Chennai, serving as a pivotal location for key corporate milestones, including the remote ringing of the Nasdaq opening bell. However, the site has faced challenges over the years, particularly recurrent flooding due to its proximity to a water body. These environmental issues have required substantial investments in repairs and refurbishment, prompting Cognizant to rethink its operational footprint.
Cognizant’s decision to divest this property reflects its ongoing commitment to streamline its real estate portfolio and enhance operational efficiency. The move aligns with a growing trend among companies to optimise their real estate assets, particularly in an era where remote work and hybrid models are reshaping traditional office space needs. As the company transitions to its new headquarters, it is expected to focus on leveraging consolidated spaces to foster collaboration and innovation, ultimately enhancing productivity. In this context, Cognizant’s divestment is not merely a financial transaction; it represents a proactive approach to adapting to evolving market conditions and fostering a sustainable operational model. This strategic realignment will likely position Cognizant for continued growth in the Indian market, as it navigates the challenges of an increasingly competitive landscape.