Why NC approved a tech company’s incentives for remote jobs outside Mecklenburg

One of the largest tech companies in the country is still in line to get NC tax incentives after the state approved a motion for it to hire 500 remote workers rather than have them be based in Mecklenburg County.

Cognizant Technology Solutions can now have those workers based anywhere in North Carolina.

The decision comes a year after the company withdrew from a separate grant after it failed to create 300 jobs in Charlotte.

Cognizant, a Fortune 500 company based in New Jersey, received approval Tuesday from the state’s Economic Investment Committee to modify an existing Job Development Investment Grant. The exception means employees can work remotely from anywhere in North Carolina, not solely within Mecklenburg County.

“It gave them permission to have more workers be remote workers under their existing agreement,” said David Rhoades, a spokesman for the North Carolina Department of Commerce.

In 2014, the state awarded Cognizant up to $5.1 million over 12 years for expanding in North Carolina, including hiring 150 workers in Charlotte and 350 around the state, The Charlotte Observer previously reported.

Cognizant officials did not respond to a request for comment.

The JDIG is a performance-based incentive program that provides cash grants to a company. To receive the incentives, performance verification by the state departments of Commerce and Revenue confirms the company has met its incremental job creation and investment targets.

Since the pandemic, the state has allowed remote workers, Rhoades said.

Employees who are not North Carolina residents must perform full‐time work in the state to be considered eligible.

Separate state grant pulled

In March 2024, the state canceled a separate 2018 grant for Cognizant after the company failed to meet its promise of creating 300 jobs in Charlotte.

That grant was for over $2 million spread over 12 years. But Cognizant said it would not meet its job creation goals “due to economic uncertainty and decreased demand.” The company also closed its Charlotte delivery center at 8520 Cliff Cameron Drive in the University City area last year.

This year, two other companies in Charlotte lost their grants.

BestCo in Mooresville and Equitable Financial Life Insurance Co. each failed to meet requirements to receive JDIG payments.

More about Cognizant

Cognizant, which specializes in providing tech and consulting services, has more than 1,900 employees in North Carolina.

In 2020, Cognizant acquired Bright Wolf, a company founded by alumni from N.C. State University and UNC Chapel Hill’s computer science departments. Terms of the deal were not disclosed.

Cognizant reported $19.7 billion in revenue last year and has 336,800 employees companywide.

News & Observer reporter Brian Gordon contributed to this report.

This story was originally published April 23, 2025 at 10:01 AM.