Salesforce clients must recognize Cognizant’s growing Salesforce capability: its acquisitions of Code Zero and EI-Technologies support its ambitious Salesforce services growth ambitions

In February 2020, Cognizant announced the acquisition of Code Zero and the intention to acquire EI-Technologies to strengthen its Salesforce services portfolio. Both acquisitions will bring in fresh talent and deeper local experience to Cognizant in a hyper-competitive market. Executives looking to embark on a Salesforce project must recognize Cognizant’s investment in the market and growing capabilities.

Source: Cognizant and Salesforce AppExchange.

Note: Code Zero Consulting and EI-Technologies numbers represent the Salesforce recognized certifications listed in Salesforce AppExchange. The total Cognizant number includes all Salesforce certifications, including admin certifications.

• Code Zero Consulting: Code Zero Consulting is a privately held provider of consulting and implementation services for cloud-based configure-price-quote (CPQ) and billing solutions. Code Zero is a Salesforce Platinum Partner. According to Salesforce AppExchange, Code Zero has 33 certified Salesforce experts.

• EI-Technologies: Based in France, EI-Technologies is also a Salesforce Platinum partner. Its EI-Institut is among the largest Salesforce Authorized Training Delivery Partner centers in Europe. EI-Technologies has 345 employees, and according to Salesforce AppExchange, 169 have Salesforce certifications.

Assuming the EI-Technologies acquisition goes through, both firms will strengthen Cognizant’s portfolio of cloud services, particularly Salesforce services. This aligns with Cognizant’s strategy to invest in its Salesforce services business and be recognized as a leading player in this market. Cognizant claims to have tripled its Salesforce services revenues in the past three years, and it has clear ambitions to be recognized as global tier one Salesforce services system integrator in the next few years.

The additional certified experts after the closure of these two acquisitions would put Cognizant’s Salesforce certified pool at just over 4,500 consultants. We estimate that this is second only to Accenture. Cognizant claims that more than 1,000 associates acquired certifications in 2019 alone, and more than 75% of associates have at least two certifications. Cognizant has also acquired several other companies to bolster its Salesforce services capabilities. These include Advanced Technology Group (ATG) in 2018, also a specialist in Salesforce CPQ and billing, and SaaSFocus, which is a Salesforce Platinum partner in Australia and India. It is worth noting that Salesforce CPQ is an important growth area for all Salesforce partners, and Cognizant has been investing in this area organically as well as through acquisitions. We spoke to a Cognizant Salesforce services client who said that Cognizant had “excellent detailed knowledge” of the CPQ solution.

Could Salesforce be the shining light in otherwise difficult times at Cognizant?

Cognizant is currently going through many changes, with CEO Brian Humphries trying to accelerate the slowing ship back to the aggressive growth that it enjoyed so much in years gone by. Its recent Q4 and full-year results showed growth, but only 4.1% (5.2% in constant currency) from 2018. Q4 growth was only 3.8%, which according to our estimates, puts Cognizant and Wipro as the two worst performers of the quarter among the WITCH providers.

The Bottom Line: Clients embarking on a Salesforce project would do well to recognize Cognizant’s growing talent bench, but must scrutinize the firm’s overall capabilities and innovation in the market.

It is encouraging that Cognizant’s Salesforce practice continues to invest and set strong growth targets. It seems to be doing everything right, but we’ll have to wait to see if it all comes to fruition. Most Salesforce services clients we speak with are not aware of Cognizant’s investment in this market, in terms of consultant expertise and the company’s investment in CRM thought leadership. Increasing this awareness will be key to real success in this space. Clients who give Cognizant the opportunity tend to be pleasantly surprised. One of the best client endorsements we have heard in this market came from a Cognizant client: “I personally—and my leadership—would not have committed to the program if we didn’t have Cognizant as our partner.” If Cognizant can achieve this level of customer satisfaction across Salesforce services clients, it could be a force to be reckoned with.