Cognizant, a premier IT solutions provider announced its decision to acquire ValueSource NV. The company is a subsidiary of an integrated bank insurance group based in Belgium called KBC. The acquisition is a part of a five year contract with KBC, the Belgium-based group.
Cognizant headquartered in the US has made another acquisition announcement apart from the one with KBC. The deal came in close on the heels of another acquisition. The company acquired Equinox Consulting based in France.
Cognizant, a group listed in the NASDAQ, spoke of the ValueSource NV acquisition as a part of the deal inked with the KBC group. The deal was made with the intentions of optimizing delivery and offering better customer engagement for ValueSource NV.
ValueSource NV a value addition to Cognizant
A dedicated center in Chennai for offshore development brings the employee strength of ValueSource up to 170 people. The center is dedicated to providing integrated offshore services in the realms of maintenance of financial services and insurance domain and software development and also business operation automation and manufacturing.
The 170 people currently employed by ValueSource NV will be transferred to the Cognizant team. Further the expertise that the ValueSource team harbors in the insurance and financial services domain will ensure continuity for the KBC end of operations.
The terms of the deals made by Cognizant were never revealed in their entirety. Apart from the deals mentioned so far, Cognizant has also acquired six companies housed under the C1 group, a Germany based operation. Amidst many others, some of the notable acquisitions made are with PIPC group (a management consulting firm based in London), Market Rx, CoreLogic captives and UBS.
The Belgian group KBC will receive application development, testing services and application maintenance from Cognizant as cited by the initial five year agreement.
Can KBC and Cognizant together put tough competition in the market?
The deal between KBC and Cognizant is a combination of the best of both the worlds. Cognizant will bring its deep local business insight, global practices that are tried and tested and a truly global talent base to the table. KBC will be able to reach full potential through achieving greater levels of operational efficiency, governance and business agility. The company can become more competitive and realize all its business objectives.
Senior General Manager of the KBC group, Rudi Peeters was quoted as saying, “The agreement will offer ValueSource the necessary economies of scale required to remain competitive in the demanding ICT market, while building on the knowledge and expertise acquired over the years with the KBC platform.”
The KBC Group can rely heavily on the deal with Cognizant group as the company has proved itself over through the years. The company based in New Jersey has nearly 50 delivery centers spread across global locations and employees in excess of 1, 64,300 as of June 2013. The quarter that ended in June brought in revenues of $2.16 billion. The revenue figure was a huge 20.4 percent jump from the revenues of the June quarter of 2012. With a company that is progressing at the speed of light, KBC can expect to see good progress and realization of business potential.