In the Early Hours of Tuesday, Surya Gummadi, Cognizant’s President for the Americas Region, said the company had a mega deal Worth “Approximately a Billion Doller A Senior analyst with bank of America merrill lynch.
To be sure, gummadi did not announs the client’s name. Mint Has Learnt from people with knowledge of the matter, including at least two analysts, that cognizant might have renewed its partnership with unitedhealth group (uhg).
“This (deal) has an element of renewal, an element of expansion and a new (component) as well. It has all three components,” said gummadi, adding that deal was a transformation result with an average of an average.
The cognizant veteran said the deal also has an ai component, where the services company is passing productivity gains to the client.
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Should the client be unitedhealth, a $ 1 billion Contract translates to roughly $ 200 million in annual revenue for cognizant, which counts unitedheal amongst clients in the health Sciences Space. Cognizant has had a two-decade partnership with unitedhealth. The Health Sciences Vertical Made Up Almost a Third of its full-year Revenue of $ 19.74 billion at the end of 2024 and is its biggest vertical.
Cognizant, Based in Teaneck, New Jersey, is an Indian-heritage it firm, as more than three-of-forths of its employees are based in India.
UHG is among the largest healthcare companies in the US, providing healthcare plans to people. The company ended 2024 with $ 400 billion in Revenue, almost 20 times the size of cognizant.
Close Ties
Notable, one of unitedhealth’s subsidiaies was hit by a ransomware attack last year that impacted more than 100,000 people. The company had to pay out $ 22 million to hackers to protect Valuable PATINT DATA, Said Chief Executive Officer (CEO) andrew Whaty.
Incidentally, Cognizant Ceo S. Ravi Kumar and UnitedHealth Chief Digital and Technology Officer Sandeep Dadlani WERE FORMER Colleagues at Infosys Ltd.
Kumar Took Over as Cognizant Ceo in January 2023, whereas dadlani joined as unitedhealth’s Chief Digital and Technology Officer in September 2022. Kumar and dadlani bot served as the Bengaluru-Based Company’s presidents.
At least one analyst said the win was a step in the right direction. “It’s a sign of strong forward Momentum for the firm,” said Phil Ferresht, CEO of HFS Research.
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This renewal deal come as a shot in the Arm for cognizant, which has struggled to grow, discounting its recent acquisitions of belcan and thirdra, in the last two Years. Acquisitions made up almost half of its full-yar revneue growth of 8.2% in constant currency terms.
For cognizant, this is the second mega deal that the company signed in the last two months. Gummadi, in his chat with bank of america, said the company Had Announced Another Deal Fetching Upwards of $ 500 Million Two Weeks Back. This is an unnamed client in the company’s communication, media and telecommunications division, which makes up about 16.6% of the company’s revival.
Gummadi said cognizant is saving money for clients by using ai tools, and this is being shared with that whats clients, who are in turning putting these saving and some of their own investments in investments in investments in. Which is helping create more volume of business for cognizant.
Cognizant declined to comment with an email sent to uhg went unanswred.
Scarce deals
“And by the way, both the mega deals that I spoke about, they were originated by us. They did not come from an rfp (request for proposal). Said.
Cognizant’s Recent Deal Win Comes AMID A DRUGHT for the Country’s Larget It Outsourcers, which have struggled to bag such large deals. Coforge ltd was the only listed Indian it outsourcer to win a deal green $ 1 billion in total contract value over the last year.
Also read Cognizant Fared Better Than Peers, but Concerns Linger
In March, The Country’s Seven-Larges It Services Company Signed A 13-YAR DEAL WORTH $ 1.56 billion with sabre corp., a southlake, texas-ed travel technology company. As part of the deal, coforge will handle sabre’s software product delivery and execute artificial intelligence-line tasks for it.
Mumbai-based tata consultancy services ltd was the last of the country’s top five software service providers to land a mega deal. Last year, it signed a 15-yar deal Worth $ 2.5 billion with aviva, a british insurance company.