Cognizant wins $ 1 billion transaction from US-based healthcare business

Copyright © HT Digital Streams Limit all rights reserved. Jas Bardia 4 min Read 06 Jun 2025, 06:00 AM IST Cognizant counts UnitedHealth among its largest customers in the space for health sciences. (Mint) Summary Cognizant may have renewed its partnership with Unitedhealth Group, Mint learned from people with knowledge of the matter, including at least two analysts. Bengaluru: Cognizant Technology Solutions Corp. recently won a major ticket deal from an American healthcare business, at a time when clients renegotiate their connections with the Information Technology (IT) providers due to artificial intelligence (AI) instruments and macroeconomic uncertainty. In the early hours of Tuesday, Cognizant president Surya Gummadi said the company had won a mega transaction worth “about a billion dollars” during a chat with Jason Kupferberg, a senior analyst at Bank of America Merrill Lynch. Certainly, Gummadi did not disclose the client’s name. Mint learned from people with knowledge of the matter, including at least two analysts, that Cognizant may have renewed its partnership with Unitedhealth Group (UHG). “This (transaction) also has an element of renewal, an element of expansion and a new (component). It has all three components,” Gummadi says, adding that the agreement was a transformation agreement with an average period of five years. The knowledge of veteran said the agreement also has an AI component, where the IT Services Company gives productivity profit to the client. Read also | A place among the world’s four largest IT services firms if customer is UnitedHealth, a $ 1 billion contract, is an annual revenue of $ 1 billion for cognizant, which counts UnitedHealth among its largest customers in the space for health sciences. Cognizant had a two -decade partnership with UnitedHealth. The vertical health sciences made up almost a third of its full annual revenue of $ 19.74 billion at the end of 2024 and are the largest vertical. Cognizant, based in Teaneck, New Jersey, is an Indian trial IT firm, as more than three-fourths of its employees in India are based. UHG is one of the largest healthcare companies in the US and provides healthcare plans to people. The company ended 2024 with an income of $ 400 billion, almost 20 times the size of cognizant. Near tires, especially one of UnitedHealth’s subsidiaries, were hit by an attack on Ransomware last year that affected more than 100,000 people. The company had to pay out $ 22 million to hackers to protect valuable patient data, said Andrew Witty, CEO (CEO). By the way, the Cognizant CEO S. Ravi Kumar and UnitedHealth Chief Digital and Technology Officer Sandeep Dadlani were former colleagues at Infosys Ltd. In January 2023, Kumar took over as cognizant CEO, while Dadlani joined UnitedHealth’s chief and technology officer in September 2022. Bengaluru-based company presidents. At least one analyst said victory is a step in the right direction. Phil Fersht, CEO of HFS Research, said: “This is a sign of a strong forward momentum for the firm. Also read | concerns about captive: Why cognizant has called out the risk of GCCs, this renewal agreement is as a shot in the arm for cognizant, which has recent two years. Discounted. Communication, media and telecommunications division, which makes up about 16.6% of the company’s revenue. -Post sent to UHG, unanswered. They did not come from an RFP (request for proposal). They (the mega offers) come from a solution with this construction, “he said. Cognizant’s recent winning victory comes amid a drought for the country’s largest IT figure, which struggled to tackle such large transactions. have. Also, Cognizant has done better than peers, but in March, the country’s seventh largest IT services enterprise signed a 13-year agreement to $ 1.56 billion at Saber Corp., a travel technology business in Southlake, Texas. Exporting for it. off to get daily market updates and live business news.