Cognizant Teams with Cambridge

Cognizant Technologies (CTSH - Analyst Report) recently announced that it will provide a range of application services to Cambridge Assessment, a not-for-profit examination group owned by Cambridge University, U.K.

As a part of the multi-year, multi-million pound agreement, Cognizant will help rationalize work with Cambridge Assessment and consolidate its portfolio of applications, and deliver application maintenance and production support services. These services should enable the organization to improve the management and processing of examinations.

Cognizant has helped Cambridge Assessment in June 2011 to consolidate application support services in its portfolio to ensure efficiencies and competitiveness in a demanding market.

Earlier, Cognizant announced that it has been selected by the UK Financial Services Authority (FSA) to be a key supplier as part of its Strategic Outsourcing Framework Agreement (SOFA). The FSA is a leading independent body that regulates the financial services industry in the UK. Employing more than 1.1 million people, FSA oversees more than 29,000 firms, which contribute over 6.8% of GDP.

Management stated that as a key supplier, Cognizant will help the FSA improve the reliability, scalability and flexibility of the IT systems and solutions that support the FSA's market surveillance operations, supervisory analysis and risk management functions. Cognizant has been awarded five service areas which cover solutions consultancy, application development, application maintenance, testing, and web design and hosting and will initially support a key market surveillance application used by the FSA to monitor compliance with the Markets in Financial Instruments Directive.

Cognizant also teamed up with Norway-based Visma, a provider of leading business software and processes for accounting and payroll. Both companies have agreed to deliver finance and accounting services to Norway Post, as part of a multi-year outsourcing contract. The financial terms of the transaction were not disclosed.

Owned by the Norwegian Ministry of Transport and Communication, Norway Post develops and delivers integrated, value-added communications and logistics solutions to domestic and international customers through physical and electronic networks.

Under the contract, the companies undertook a commitment to support Norway Post’s aim of enhancing its business effectiveness and thus enabling better postal and logistics services throughout Norway. With the combination of Visma’s local Norwegian accounting and regulatory expertise and Cognizant's global delivery model, transaction processing capabilities, and Oracle solution accelerators; the companies expect to fulfil their commitment of delivering process improvements, greater operational efficiencies, increased automation, enhanced productivity and a high-quality customer experience to Norway Post.

We continue to maintain a Neutral recommendation on Cognizant. Our Neutral recommendation is supported by a Zacks #3 Rank.

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