Cognizant targets mid-sized firms as AI squeezes big deals (opens the source in a new tab)
- Cognizant launched Cognizant Activate on Monday, a unit for companies with $1–5 billion in revenue, as AI puts pressure on the big outsourcing contracts the industry was built on.
- It is the third big IT firm in six months to do this, after Accenture Edge ($300M–$3B clients) and HCLTech Pulse ($500M–$5B), and it puts Cognizant up against Coforge, Mphasis and Persistent.
- It will sell pre-configured bundles in data and AI, cybersecurity, cloud and managed services, starting with financial services, healthcare, manufacturing, retail and consumer goods.
- $1–5B
- client revenue band
- 3rd
- big IT firm in 6 months
Why it matters Mid-tier IT firms now face the giants on their home turf.
Other side Mid-sized clients rarely award the $500 million multi-year deals tier-1 firms grew on, though analysts say there are thousands more of them and margins can be better. Can giants move small and fast?
Source:Mint (free to read) ↗