Francisco D’Souza’s Vision for Tech Services: From Cognizant to Recognize

Francisco D’Souza, a notable name in the technology and services industry, embarked on a new and ambitious journey with Recognize, a private equity firm that unveiled an inaugural fund of approximately $1.3 billion. Recognize, co-founded by D’Souza and three distinguished partners, namely, his longtime colleague and former Cognizant President, Rajeev ‘Raj’ Mehta, Charles Phillips (former President of Oracle and CEO of Infor), and David Wasserman (a seasoned figure in private equity), sets out to identify and support the emerging generation of tech services companies, seizing on the remarkable transformations taking place in the tech landscape.

At the core of Recognize‘s vision is the profound realization that the technology services sector is undergoing a substantial evolution. The catalyzing force behind Recognize’s formation, as articulated by D’Souza, is the recognition of an extraordinary opportunity for disruptive innovation within tech services. History has consistently shown that during periods of substantial industry transitions, a new generation of winners invariably emerges. Recognize’s objective is to recognize and engage with these nascent tech service companies early in their developmental journey, with the promise of fostering remarkable growth. This pursuit is underpinned by the collective experience of Recognize’s founding partners, boasting an impressive 100 years in building multi-billion dollar enterprises.

Historically, the tech services industry primarily revolved around human resources. While this human element remains pivotal, the industry is at the cusp of two major shifts. The first one involves the necessity to incorporate significant intellectual property (IP) into services, particularly in the form of software, data, and data management. The next generation of tech services companies will be characterized by an emphasis on IP-based solutions, far exceeding the offerings of today’s tech companies. Another notable transformation revolves around the management of people, often referred to as the ‘future of work.’ In a post-pandemic world, there’s a heightened focus on the importance of meaningful and fulfilling work experiences for employees. Simultaneously, employers seek methods to reduce employee turnover while ensuring predictability regarding the talent pool available for upcoming projects.

Intriguingly, there exists a substantial funding gap within the tech services sector. Despite its considerable size, it has attracted only a third of the private equity capital compared to the software sector. Recognize, with its strategic vision and robust financial backing, aims to capitalize on this extensive opportunity by nurturing and scaling promising tech service businesses. Recognize operates with a strategy reminiscent of a private equity business model. The firm seeks to attain operational control of its portfolio companies while primarily focusing on growth equity investments. The plan for the first fund spans over the next decade or more, potentially leading to the establishment of a second, larger fund as Recognize’s journey unfolds.

D’Souza’s vision extends beyond conventional business interests. He aspires to create an environment where inspired tech service entrepreneurs can collaborate with like-minded operators and investors to develop truly exceptional businesses. Recognize’s approach also strives to redirect a larger share of high-quality tech service jobs toward underrepresented segments of global societies. In essence, Francisco D’Souza’s journey, from co-founding Cognizant to establishing Recognize, is a testament to his unwavering commitment to innovation and the creation of businesses that deliver meaningful outcomes for their clients. With Recognize, he envisions a future where he serves as a catalyst for the tech service giants of tomorrow, today.