New Delhi, May 27 -- Cognizant Technology Solutions Corp. is financing its $2 billion share repurchase through bank credit, in a departure from the information technology (IT) industry's practice of using cash reserves for such transactions. The development underscores the twin challenges of keeping shareholders content and keeping enough cash for business and acquisitions.

In Nasdaq filings last week, the US-headquartered IT services giant said it will draw $1 billion for the buyback from a $1.85 billion revolving credit facility. Cognizant had secured the credit line in 2014 to support the $2.7 billion acquisition of Trizetto, a healthcare-focused IT firm.

Cognizant, which had decided earlier this year to buy back up to $1 billion of ...