8 We also pioneered our “Vertical Business Process Outsourcing,” or V-BPO services in life sciences during 2004. As described in our letter to shareholders, V-BPO is unique and provides clients with significant value addi- tion. As an example of this, in life sciences, we are working with a major pharmaceutical company to provide them with V-BPO services in the area of data management for clinical trials. consulting and systems integration teams to deliver IT solutions to business problems. This allows us to deliver effective end-to-end solutions that demonstrate rapid ROI. We have also built key solution accelerators like Yardelligent (for yard management) and WasteTrace (for hazardous waste manage- W ment) that enable our clients to accelerate time-to-market and solve business problems faster and more effectively. Gartner included Cognizant in the North American CRM Service Provider Magic Quadrant. 1 We are the top offshore company providing CRM solutions in part because of the robust and cost-effective services we provide to leading life sciences companies to support the sales and marketing process for drugs. We have established solid client relationships with major companies in North America, Europe and Asia (in particular, Japan). We work across a wide swath of the industry, ranging from major automobile manufactur- ers, large food companies, and advanced logistics firms providing streamlined supply chain management. Our client base includes several of the world’s largest manufacturing companies – as well as many which rank among the top 100 in the United States. In manufacturing, retail and logistics, Cognizant built significant momentum, expanding revenues from the practice by 64 percent in 2004. Within this vertical, manufac- turing and logistics has shown great results and future promise. AMR Research noted Cognizant created an innovative yard management system for the auto industry. 2 It is a good example of higher value, industry knowledge intensive services being delivered using an on-site/offshore model. Cognizant has seen great demand in the areas of Supply Chain Management, Customer Management and RFID-enabling of key business processes. We built a strong industry domain consulting team that works closely with our industry-leading technology As indicated, in manufacturing, retail and logistics, Cognizant built significant momen- tum, expanding revenues from the practice by 64 percent in 2004. Within this vertical, retail has grown strongly. We now work with many of the world’s top retailers including on-line leaders, luxury goods leaders and well-known names in Europe and the U.S. > The Retail Industries: Helping Customers Sharpen Operating Efficiencies > Manufacturing and Logistics: M Using Technology to Provide Differentiation COGNIZANT ANNUAL REPORT 2004