Businessmodel of Cigniti Technologies

Customer Segments

Cigniti provides a range of software testing solutions to commercial and institutional clients across a range of industries. The Company principally serves clients across the following industries:

• Banking and Financial Services, including commercial and retail banking institutions, investment managers, and other financial service providers;
• Airline, including passenger air carriers and cargo airlines;
• Energy and Utilities, including energy producers, electricity and gas transmission companies, energy distributors, and water companies;
• Communications, including telecommunications companies, internet service providers, cable network operators, and other communications companies;
• Insurance, including large multinational insurance groups and independent insurance providers that cover health, property, travel and other insurance products; and
• Retail, including digital and physical retailers across multiple sectors. Cigniti is based in India but serves an extensive international client base that spans Asia Pacific, Europe, and North America.

Value Propositions

Cigniti provides value to its clients in the following ways:

• Its industry standing and track record, with the Company established as a reliable provider of software testing services, having a positive track record within the industry for providing effective, high-quality solutions;
• Its broad portfolio of products and services, with the Company offering a varied range of services and solutions that suit the needs of clients across multiple industries, including test automation, digital quality assurance, and mobile testing services;
• Its international reach, with the Company offering services to clients not just in its native India, but also to clients across markets in Europe, North America, and Asia Pacific, and operating a network of international offices; and
• Its large network of partners, with the Company working closely with a range of partner companies and organisations to ensure the effective and efficient development and deployment of its solutions. ### Channels

Cigniti operates a website at www.cigniti.com, through which it provides information on its various products, services, partners, and target industries. The Company does not operate an online sales channel, nor does it operate an online client portal that allows customers to access services online.

Cigniti sells its services and products primarily through its in-house direct sales force, which is organised across the Company’s international network of sales and administrative offices. This includes office locations in the US, the UK, South Africa, Australia, India, and Canada. Cigniti’s services are provided directly to customers, with cooperation from representatives of its customers, either on-site or remotely.

Cigniti additionally provides services and solutions through various channel partners, including a network of value added resellers.

Customer Relationships

Cigniti does not provides products and services to customers on a self-service basis, nor does it operate a self-service online portal or offer mobile apps.

Instead, the Company provides services directly to clients through its sales and service teams that consult closely with customers over a period of time to establish a clear brief for each project and to ensure that the individual needs of each client are met successfully. The Company works closely with customers throughout its various projects, seeking to build string customer relationships that lead to recurring businesses.

Cigniti offers ongoing support to its clients, with larger commercial customers being afforded their own account management teams that work closely with individual clients. Customers are able to contact the Company’s various international offices over the phone or through an online contact form in order to make more general enquiries. Cigniti additionally offers a range of online resources – such as ebooks, white papers, webinars, videos, and case studies – that customers can access independently via the Company’s website.

Cigniti also operates several social media accounts – including with Facebook, Twitter, LinkedIn, Google+, and YouTube – through which the Company is able to interact directly with clients and publish regular company updates.

Key Activities

Cigniti is a software testing company. The Company offers a broad range of quality engineering, advisory and transformation, next generation testing, and core testing solutions to commercial and institutional clients across the retail, financial services, energy, air travel, and communications industries.

The portfolio of services includes service virtualization, test data management, mobile testing, digital quality assurance, big data and analytics testing, e-commerce testing, energy and utilities, medical device testing, test automation, performance testing, security testing, and enterprise resource planning testing.

Cigniti is based in India where it serves a large domestic client base. It also maintains operations across Europe, North America, and Asia Pacific and serves an international network of customers.

Key Partners

Cigniti works closely with a network of partners around the world that help to ensure that the Company’s solutions are reliable and effective. These partners can be organised broadly into the following categories:

• Supplier and Vendor Partners, including suppliers of services, equipment, tools, and technologies that are utilised in the development and delivery of the Company’s solutions and support its core activities;
• Technology Partners, including a range of technology companies, software and application developers, application management companies, IT service providers, and analytics firms that ensure that the Company’s solutions are effective and reliable, and that its IT and communications systems are properly maintained;
• Channel and Distribution Partners, including the Company’s network of value added resellers and sales agents that assist in delivering and deploying the Company’s solutions, as well as extending its customer reach; and
• Strategic and Alliance Partners, including a range of market leading companies across multiple sectors, with which the Company collaborates on various joint projects. Cigniti names a number of its partners on its website. This includes companies such as AppDynamics, HP Invent, QASymphony, Tricentis, Paragon Application Systems, TestPlant, Veracode, and Ranorex.

Key Resources

Cigniti’s key resources are its intellectual properties and proprietary technologies, its IT and communications infrastructure, its physical network of offices, its sales and distribution channels, its partnerships, and its personnel.

According to its annual report, Cigniti invests in building patented intellectual property related tools and testing labs. A search of records published by Intellectual Property India identified one patent application filed in Cigniti’s name, which is entitled ‘System and method for converting the business processes to test-centric activity diagrams’.

Cigniti additionally owns and or leases a portfolio of physical properties that comprise its network of offices and testing labs across Asia Pacific, North America, and Europe.

Cost Structure

Cigniti incurs costs in relation to the development of its technologies and tools, the operation of its sales and distribution channels, the maintenance of its IT and communications infrastructure, the procurement of services, the management of its partnerships, the implementation of marketing campaigns, and the retention of its personnel.

In 2016 Cigniti recorded total expenses in the amount of INR 5.14 billion. This includes employee benefit expense in the amount of INR 3.09 billion, administrative expenses in the amount of INR 601.71 million, and other operating expenses in the amount of INR 1,28 billion.

Revenue Streams

Cigniti generates revenue through the provision of various software and application testing services. The Company derives its revenue primarily under sale and service contracts that are agreed on a case-by-case basis.

In 2016 Cigniti generated annual revenue from operations in the amount of INR 5.95 billion, up on the INR 3.79 billion recorded by the Company in 2015. The Company recorded other income in the amount of INR 34.13 million.