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  "documentTitle": "Cognizant Technology Solutions (CTSH)",
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  "authorName": "Jesse Cohn",
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  "presentationDate": "2016-11-28 00:00:00",
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  "notes": "This is page 12 of a shareholder letter, likely from an activist investor (Elliott Management).",
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      "text": "Enhancement Plan would leave Cognizant with a comparable operating margin target of ~21.5% in FY18E – still a highly conservative ~400–500 basis-point discount to peers.",
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      "text": "G&A: Opportunity to trim function sizes (HR/Finance), improve management spans of control, and right-size U.S. corporate overhead.",
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      "text": "Third-Party Spend: Operating below best-in-class benchmarks. Potential savings through more rigorous procurement policies, oversight, and governance.",
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      "text": "Sales & Marketing: Operating at a higher expense level vs. peers. Opportunity to streamline matrix structure, reduce non-selling resources, and align incentives.",
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      "text": "Delivery: Cognizant's delivery organization currently operates below industry benchmarks. Opportunities include optimizing the Two-In-a-Box model and reducing excess bench capacity.",
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      "text": "operating margin: 21.5%",
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      "text": "Looked at another way, this plan represents such a highly targeted effort to cut costs that it does not assume a reduction in the aggregate cost base. Given Cognizant will continue to grow roughly 10% per year over the coming years, the Cognizant Value-Enhancement Plan does not assume a reduction in dollar costs but instead calls for more than $125 million of growth in operating expenses from FY2016 to FY2018.",
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