Interview With CGS Founder & CEO Phil Friedman: Building A Sustainable Global Technology Business

By Amit Chowdhry • Nov 1, 2024

Computer Generated Solutions (CGS) has enabled global enterprises, regional companies, and government agencies to drive breakthrough performance through business applications, enterprise learning, and outsourcing services for 40+ years. Pulse 2.0 interviewed CGS founder and CEO Phil Friedman to learn more about the company.

Phil Friedman’s Background

Phil Friedman

Please share your background and your journey in launching CGS. Friedman said:

“My journey began in 1976 when I arrived in the U.S. from the former Soviet Union, filled with anticipation. Despite degrees in electrical engineering, economics, and finance, I quickly realized that mastering English was essential to my success. I went back to school to refine my language skills and focused on data processing, which led me to a job in the IT department of garment manufacturer Charles Greenberg & Sons.”

“Within three years, I was running the entire IT department. At the time, the company’s computer systems were inefficient and labor-intensive. I proposed implementing IBM System/38 with ACS (apparel computer systems) software to help manage data processing tasks, thus creating the company’s first online computer system. This innovation attracted attention from industry peers and was a major ‘aha moment’ for me.”

“Realizing I was giving away valuable advice for free, I drafted a four-page business plan and made a bold proposal to Charles Greenberg & Sons: let me take five programmers and launch a consulting service that would guarantee the same level of quality at half the cost. Surprisingly, they agreed, and that’s how Computer Generated Solutions (CGS) was born, with Charles Greenberg & Sons becoming our very first customer.”

“Today, CGS is a global leader in IT solutions, providing applications, immersive learning, and business process outsourcing services to major enterprises across industries. With thousands of employees worldwide, CGS helps companies enhance performance, reduce costs, and drive innovation.”

Core Services

Tell me about your company’s core products and services. Friedman explained:

“CGS supports global enterprises, regional companies and government agencies with business applications, enterprise learning, immersive XR solutions for collaboration and learning, and outsourcing services to solve the fundamental business challenges they face.”

“CGS’s Business Applications division features BlueCherry, our comprehensive suite of supply chain management solutions tailored for the apparel, fashion, and consumer goods industries. BlueCherry supports end-to-end digital transformation, driving efficiency and sustainability through its integrated capabilities in inventory management, demand planning, product lifecycle management, and ERP. Recent innovations, like AI-powered forecasting and real-time data analytics, enable companies to optimize operations, reduce waste, and adapt to market demands swiftly. Advances in AI and predictive analytics have fueled its growth, allowing brands to enhance decision-making, cut carbon emissions, and reduce time-to-market.”

“Our Learning and Immersive divisions deliver ground-breaking workplace training solutions for Fortune 500 companies across healthcare, food & beverage, manufacturing, and other sectors. We develop immersive learning experiences that drive employee engagement and improve knowledge retention, leveraging VR, AR, and XR technologies in workforce training.”

“CGS’s Business Process Outsourcing (BPO) division offers solutions in customer support, technical assistance, and back-office functions to industries including telecom, retail, healthcare, and financial services. Innovations such as AI chatbots, predictive analytics, and robotic process automation (RPA) streamline operations, enabling businesses to reduce costs while scaling customer engagement.”

Favorite Memories

What are a few of your favorite memories to date since founding CGS? Friedman reflected:

“One of my favorite memories since founding CGS dates back to 1994, when we faced a pivotal moment in our journey.

“During our first 10 years in business, CGS provided consulting services for ACS product customers in the fashion industry on the East Coast. In time, ACS was acquired by consulting firm, Kurt Salmon Associates (KSA). However, our relationship with KSA quickly deteriorated because of their lack of investment in the product. In a candid meeting with KSA’s chairman, I expressed my frustration with the direction things were headed.”

“His unexpected response changed everything: ‘If you know what to do with ACS, why not just buy it from us?’”

“Within two weeks, I made an offer to purchase ACS — which he accepted. This marked a major turning point for CGS, transforming us from a services company to a software company. It was among the most defining moments in our history as it allowed us to truly take control of our destiny, combining our software expertise with our deep consulting experience. This strategic shift set CGS on a new path and remains a landmark today in our company’s evolution.”

“Another favorite memory of mine was celebrating the first time we reached 1,000 employees. When I founded CGS, I had set a goal of having 1,000 employees at my company, so reaching this was a significant achievement for me.”  

“It marked a major moment in our growth, fulfilling a vision that began in the early days of CGS. Since then, we’ve celebrated each time we’ve added another 1,000 employees, recognizing the dedication and hard work that has fueled our success. Each milestone is a reminder of how far we’ve come and the collective effort that drives us forward.”

Leadership Qualities

What leadership qualities do you believe have been most critical in your role as CEO over the past 40 years? How has your leadership style evolved over time? Friedman noted:

“Over the past 40 years as CEO, the most critical leadership quality I’ve embraced is leading by example and maintaining consistent, high standards for myself and my team.  I have always believed that how I present myself – even something as simple as coming to work each day in a suit and tie – reflects my discipline and commitment to the company.”

“In business, I believe it’s critical for leaders to not set different rules for themselves than they would for their employees; people observe and recognize discrepancies between words and actions. Integrity is everything.”

“As for my own leadership evolution, it’s been a journey of learning how to let go. In the early days of CGS, I felt compelled to do everything myself—an approach common to many new entrepreneurs. As CGS grew, I realized I had to shift from being hands-on in every detail to building a capable team that could carry out my vision. Delegating responsibilities and trusting others to execute the strategy was challenging but necessary for our success. It’s a transformation from being a doer to being a leader, which requires not only hiring the best talent but also empowering them to deliver results.”

Corporate Social Responsibility

What role does corporate social responsibility play at CGS? Are there specific initiatives you’re currently pursuing to give back to the community or support sustainability? Friedman pointed out:

“At CGS, corporate social responsibility (CSR) has long been embedded in our culture and integral to how we operate across the globe. Operating in nine countries with customers in 52 of them, we strongly believe in giving back to the communities where we do business. Many of our offices have developed initiatives tailored to local needs. In Romania for example, we partner with orphanages, where our employees regularly collect clothes and toys, and spend time with the children. It has become a very meaningful tradition across our seven Romanian offices.”

“Another example is in India, where we support soup kitchens by having our teams serve meals and provide essentials for the needy. In the U.S., our sustainability efforts include annual tree planting events as part of our commitment to the environment.” 

“Often, our business and CSR goals are intertwined. An example of this is our partnership with UNESCO where we provide fundraising support; it’s more than a business relationship, it’s a way for us to support education globally. Similarly, our work with the American Red Cross involves training phlebotomists to enhance blood collection capabilities—an initiative that merges our technical expertise with a strong social impact.”

“The enthusiasm our employees have shown for each of these CSR initiatives is what helps create a meaningful impact. Blending technical support and mission-driven involvement creates a unique dynamic, reinforcing our commitment to social impact while achieving our business objectives.”

Future Goals

What are some of your future goals for the company? Friedman emphasized:

“CGS has evolved into a highly diversified technology company and now encompasses four distinct business divisions under one roof – applications, learning, immersive solutions, and outsourcing — each offering a diverse range of technology and people solutions to meet our client’s most pressing business challenges.”

“As we look ahead, our primary goal is to refine our go-to-market strategy, positioning ourselves as industry leaders within each of these sectors.  Within our applications division, I’m particularly excited about the upcoming launch of BlueCherry Next, an AI-driven supply chain management solution for the fashion industry that’s years ahead of the competition.  In our Immersive division, we’ll soon launch an AI-driven roleplay platform that’s backed by partnerships with major Fortune 100 firms, including Apple and Google, in industries including healthcare and airlines.”

“Looking toward the future, we are focused on expanding our use of emerging technologies, especially AI, to support our customers’ success. We’re investing in ongoing innovation through our three innovation labs located in Romania, Chile, and Canada, where we are constantly developing new products and solutions.”

“By maintaining our commitment to innovation, we aim to establish and sustain a leadership position in every market we serve.”

Legacy

As you reflect on your career and the impact of CGS, what do you hope your legacy will be, both within the company and in the broader industry? Friedman concluded:

“Reflecting on my career, I am extremely proud to have built CGS from the ground up as a wide-eyed immigrant arriving in the U.S. with just $500 in my pocket and no English skills. Over the past 40 years, we have grown the company, brick by brick, into a leading global solutions provider in the IT, learning, and outsourcing industries. What is even more remarkable is that we achieved success without borrowing a single dollar from a lender. Strategic acquisitions have helped fuel our growth along the way and is something I’m quite proud of.”

“Looking ahead, I hope my legacy will be defined by resilience, innovation, and unwavering commitment to building a financially strong and diversified company that remains poised for growth. I believe the groundwork we’ve laid will enable CGS to continue evolving, adapting, and delivering value to clients worldwide, paving the way for greatness in the years to come.”