Cognizant appoints former Infosys president Ravi Kumar as CEO

Ravi Kumar had resigned from Infosys in October 2022

Cognizant on January 12 announced the appointment of former Infosys president Ravi Kumar as its new chief executive officer effective immediately.

Ravi Kumar succeeds outgoing CEO Brian Humphries, who will be departing from the company on March 15.

Analysts had previously said that Cognizant’s multi-year underperformance warranted action from the Board, and that a change in leadership was needed. At the time Ravi Kumar's appointment was announced, Moneycontrol had reported that he was pipped to be a CEO candidate.

Cognizant had previously announced Kumar’s appointment as President of Cognizant Americas, a role which will now go to 24-year Cognizant veteran Surya Gummadi.

"I am honoured to join Cognizant, a company I have long admired for its dedicated client focus and its track record of innovation," Ravi Kumar said in a statement.

"Cognizant is well-positioned for growth, and I'm excited to unlock the Company's significant potential for our employees, clients, investors, and other stakeholders,” he said.

Outgoing CEO Humphries said in a statement: "I am proud of our team's achievements during my tenure as CEO. Our brand is more visible, our portfolio is stronger, our client relationships are more consultative and we are better aligned to high growth digital segments within our market. The company is in a great position for success. It was an honor to lead our talented associates and I wish Ravi and the leadership team all the best for the future."

On LinkedIn, Humphries wrote: "Today it was announced that I will be stepping down from my role as Cognizant’s Chief Executive Officer. I joined the company four years ago to reposition and transform Cognizant into a leading digital transformation company...Cognizant is now ready for its next stage of growth. I am proud of what we achieved during my tenure as CEO and honored to have led the company. I wish all the best to our 350,000 associates and our valued clients and partners."

In an interview with Moneycontrol earlier, Managing Director of Wedbush Securities Moshe Katri had called out the Board of Cognizant for not exercising its fiduciary duty due to the company's underperformance.

In the third quarter of the 2022 calendar year, Cognizant had reported a sequential decline in revenue and also pared its guidance for the second time, along with missing its revenue growth guidance for the quarter.

The company's underperformance, Katri had said at the time, would increase pressure on the board to examine performance and execution, and that it could potentially lead to executive role changes.

“Specifically, we continue to see the company losing market share, as it is unable to sustain a reliable recruiting engine while its ability to attract senior, seasoned executives remains questionable,” Wedbush Securities said in a note in November 2022.

The change in leadership comes at a time when Cognizant has ceded market share in key verticals and growth has slowed. The company was once seen as a barometer of growth for the industry.

Kumar's appointment at Cognizant, even as President of Cognizant Americas, had been viewed as a positive move.

When Kumar joining Cognizant was announced in October 2022, Katri had said that it was assumed to be a Board-driven action, and that the Board was assumed to be factoring in a transition phase before taking over as CEO. Humphries was to only complete his five-year tenure in 2024.

Kumar's appointment was seen as a positive move in bringing on an industry veteran with extensive knowledge in managing staff, clients and personnel was a smart move and that unlike prior senior nominations at Cognizant, and that Ravi Kumar brings know-how in building growth businesses, as per the note by Wedbush.