BENGALURU: Cognizant is learnt to have secured a deal worth over $1 billion from Swiss pharma major Novartis as part of a consolidation contract that includes renewals as well as new scope spanning application services, infrastructure, data and AI-led offerings, people in the know told TOI. This marks the second consecutive billion-dollar deal for Cognizant in less than a year, after it won a large contract from UnitedHealth Group last year. UnitedHealth ranks among Cognizant’s biggest customers, supported by a partnership spanning nearly two decades. When TOI reached out, a Cognizant spokesperson said the company is currently in a silent period and had no comment. An email sent to Novartis did not elicit a response until the time of going to press. Those aware of developments said Cognizant’s EMEA and APAC teams played a key role in clinching the deal under the leadership of Gagan Syal, head of life sciences for EMEA and APAC at Cognizant. Phil Fersht, CEO of USIT advisory HfS Research, said the rise in half-billion-dollar and larger IT services deals reflects a structural reset in how enterprises buy technology, rather than a surge 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. These deals now typically span seven to ten years.
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