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. 

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. 

## > Manufacturing and Logistics: M Using Technology to Provide Differentiation 

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. 

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 

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. 

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. 

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. 

## > The Retail Industries: Helping Customers Sharpen Operating Efficiencies 

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. 

