The aim of the acquisition is to into incorporate Softvision’s technology into the Cognizant portfolio. Once this is in place, Softvision’s technology and resources, when combined with Cognizant’s Digital Engineering Practice, will help to create a major provides of digital product development services in the world. Once the transaction is finalized, Cognizant will continue use of the Softvision brand to work on its digital transformation services to an array of business clients.
For this to happen, Cognizant’s Digital Engineering teams will work with and further scale Softvision’s talent communities and unique agile delivery model. Cognizant expects to scale and leverage Softvision’s approach to digital engineering development, cross-functional agile culture, and talent development across its own teams as a key part of its strategy to help clients create new software products.
Softvision has 27 studios, in 11 countries and 5 continents. Formed in 1994, the company has developed a worldwide reputation in the digital engineering space. Reuters has reported that Cognizant will buy the private equity-owned company for $550 million.
Digital engineering is the process of creating, capturing and integrating data using a digital technology. This covers the spectrum from drawings to simulations and 3D models, where data is captured and crafted in a digitised environment. Softvision’s work in this area is generally with Fortune 500 clients in financial services, consumer products and healthcare.
Through the acquisition Cognizant will seek to expand its offerings in digital and cloud services to challenge outsourcing services rivals Accenture and IBM. Gajen Kandiah, President, Cognizant Digital Business states: “Innovation and speed to market are paramount for our clients. Extending Softvision’s approach to digital engineering, integrated cross-functional teams, agile culture, and talent development across our own teams is a key element of our strategy. This synergy, together with Cognizant’s deep technology and industry expertise, will enable us to deliver custom cloud-based software and platforms better and faster, helping more clients transform their businesses to become digital leaders.”
