Delta Air Lines has cut its exposure for IT services to Cognizant. The latter has a considerable exposure to Delta with a yearly agreement value of almost $50 Million. This follows within months of Swiss bank UBS lowering its outsourcing to the NASDAQ-listed IT firm. Most of this UBS operation was shifted to Wipro and TCS.
Cognizant had been one of the best IT services firms for the last few years. But things do not seem to be performing well for it currently. The share cost has been lowering since March 2018 too. Delta Air Lines, which counts TCS, IBM, and Cognizant amongst its primary IT associates, has started shifting some of the IMS (infrastructure management services) and middleware applications to TCS, claimed sources well aware with the matter.
A spokesperson of Cognizant claimed that due to the policy we cannot comment on our customers. A spokesperson of Delta Air Lines claimed, “TCS and Cognizant both stay vital partners in Delta’s work to offer 24/7 & consistent support to best cater our global requirements.”
Speaking of Cognizant, the IT services major earlier claimed that it will purchase Softvision, LLC (the consulting and digital engineering firm). Terms of the agreement, comprising the size of the acquirement, were not revealed. The acquirement will generate one of the top digital engineering firms all over the world and a pioneer in the development of software products, assisting customers to execute at scale and innovate at speed, Cognizant claimed to the media in an interview.
The Texas-located Softvision was established over 2 Decades ago and works with Fortune 500 customers in retail, financial services, healthcare, consumer products, and other industries. “The deal will enable Softvision to merge its design, engineering, and digital product development technique with the digital expertise of Cognizant,” claimed Andres Angelani, CEO of Softvision, to the media in an interview.