In a significant boost to its portfolio, global IT services major Cognizant has reportedly secured a monumental contract valued at over $1 billion from Swiss pharmaceutical behemoth Novartis. Sources familiar with the development have confirmed the deal to TOI, highlighting a major consolidation effort by the client.
A Strategic Consolidation and Expansion
The agreement is understood to be a consolidation contract that includes both renewals of existing services and a significant new scope of work. The expanded partnership will encompass a wide array of technology domains crucial for modern enterprises. These include application services, infrastructure management, data solutions, and artificial intelligence (AI)-led offerings. This move by Novartis underscores a strategic shift towards bundling IT services with fewer partners for greater efficiency and accountability.
Second Billion-Dollar Deal in Under a Year
This landmark contract with Novartis represents the second consecutive billion-dollar deal for Cognizant in less than a year. The company had previously won a large contract from UnitedHealth Group, one of its biggest customers with a partnership spanning nearly two decades. This back-to-back success signals strong momentum for Cognizant in capturing large-scale, transformative engagements in competitive markets.
When contacted for comment, a Cognizant spokesperson stated that the company is currently in a silent period and declined to elaborate. An email sent to Novartis did not receive a response by the time of publication.
Key Players and Industry Implications
Insiders revealed that Cognizant's teams in the Europe, Middle East, and Africa (EMEA) and Asia-Pacific (APAC) regions played a pivotal role in securing this win. The effort was spearheaded under the leadership of Gagan Syal, who heads the life sciences vertical for EMEA and APAC at Cognizant.
Industry analysts view this deal as part of a broader trend. Phil Fersht, CEO of US-based IT advisory firm HfS Research, commented that the rise of half-billion-dollar and larger IT services deals reflects a structural reset in how enterprises purchase technology, rather than just a spike in discretionary spending.
"CIOs are aggressively consolidating vendors, bundling what were once multiple mid-sized contracts into fewer, broader and longer-term engagements with clearer accountability," Fersht explained. He added that such mega-deals now typically span seven to ten years, indicating a shift towards deep, strategic partnerships over transactional relationships.
This major contract win not only strengthens Cognizant's position in the lucrative life sciences and healthcare sector but also solidifies its capability to deliver complex, integrated, and AI-driven solutions on a global scale.
