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Cognizant vs Rackspace Technology: Which MSP is Better? | The MSP Playbook

Article 2026-07-27

Cognizant vs Rackspace Technology

A detailed comparison of two major Australian Managed Service Providers.

Feature Cognizant Rackspace Technology
Overall Score3.63.0
TypeGlobal IT Services / DigitalUS Cloud MSP
Employees35000014000
Founded19941999
HeadquartersTeaneck, New Jersey, USASan Antonio, Texas, USA
Revenue$19.4B$3.0B
Salary Range$50,000 - $150,000$50,000 - $140,000
SpecialtiesManaged Services, Cloud, AI & Data, Digital Transformation, Consulting, BPOManaged Cloud, AWS, Azure, Google Cloud, Kubernetes, DevOps
CertificationsMicrosoft Partner, AWS Partner, Google Cloud Partner, Salesforce Partner, ISO 27001AWS Premier Partner, Microsoft Partner, Google Cloud Partner, ISO 27001
Green FlagsStrong US and European presence with deep financial services expertise
Digital-first pivot (Cognizant Digital Business, Cognizant Consulting)
Excellent training and development programs (Cognizant Academy)
Broad service portfolio spanning IT, consulting, and BPO
Pioneer of 'Fanatical Support' β€” differentiated managed cloud support model
Strong multi-cloud expertise across AWS, Azure, GCP
Good for early-career cloud engineers seeking certification support
Private equity backing provides capital for growth
Red FlagsMargin pressure from commoditised application management and testing services
High attrition rates (20-24%) β€” significantly above industry average
Restructuring cycles under CEO transitions create organisational uncertainty
Below-market compensation for US-based technical talent
Offshoring model means onshore roles in the US/EU are decreasing
Financial distress β€” loss of founder leadership, multiple restructurings
Below-market compensation across most roles
PE ownership creates margin pressure and cost-cutting mentality
Massive layoff cycles (2022: 10%, 2023: 15%, 2024: ongoing)
Awful Glassdoor rating (3.0) β€” among worst of major MSPs
Business model disruption from hyperscalers going direct to customers
Worker ProsStrong US brand with good global project diversity
Digital transformation focus provides modern tech exposure
Formal training infrastructure is well-regarded
Financial services expertise is genuinely deep
Strong multi-cloud managed services expertise
Fanatical Support training instills good customer service habits
Cloud certification support and exam coverage
Good for early-career cloud engineers building a resume
Worker ConsBelow-market salaries for US-based technical roles
High attrition creates constant team instability
Restructuring cycles create anxiety and uncertainty
Onshore technical roles are being phased down
Bureaucratic culture with matrix management overhead
Financial instability β€” multiple layoff rounds and loss of founder CEO
Below-market salaries across all roles
PE ownership drives constant cost-cutting and margin pressure
Hyperscalers (AWS, Azure) going direct β€” squeezing Rackspace's business model

Which MSP Should You Choose?

Both Global IT Services / Digital and US Cloud MSP have strengths and weaknesses. Your choice depends on your priorities β€” whether that's career growth, salary, work-life balance, or technical exposure.

Use the side-by-side comparison tool for a deeper look, or check out individual profiles for detailed employee reviews.