Cognizant Technologies (CTSH - Free Report) recently announced an alliance with Monitise Group wherein Cognizant’s extensive financial services and mobility expertise will be combined with Monitise’s leading mobile money platform.
This alliance will enable financial institutions to adopt the mobile channel of interaction, and develop effective and innovative mobile banking, payments, and commerce solutions.
In addition, financial institutions will facilitate reduction of ownership costs as well as drive newer revenue streams through enhanced mobile adoption by using an interoperable platform instead of solutions from different products and mobile operating systems.
Monitise Group will extend its Monitise Enterprise Platform to the world's leading banks and payment companies and assist them to improve and expand their customer relationships.
Mobile technology is a rapidly evolving technology, which has the potential to drastically change consumer-facing industries. Cognizant aims to help clients revamp their businesses using mobile technologies and the company’s partnership with Monitise will provide next-generation mobile money solutions to financial institutions.
Earlier, Cognizant teamed up with Royal Philips Electronics (PHG), to provide a wide range of technology-enabled business transformation and growth programs.
Being a strategic partner, Cognizant will provide a wide range of services to Philips, which include consulting and application services on a global basis.
These services, in turn, will enable Philips to consolidate, rationalize, and improve its IT landscape for better operational efficiency, business agility, and governance leading to a superior customer service
As per the terms of the multi-year engagement, Cognizant will allow Philips to shift the IT organization to a platform and output-based managed services model across multiple business lines and corporate functions. Philips will be able to improve business value of IT, get insight into its demand chain and hence, respond more effectively to the needs of its markets, businesses and functions.
A key strategy of Cognizant is to align its business with vertical industries, such as financial services, health care & life sciences, retail, manufacturing and logistics. The company has gained deep industry expertise and knowledge of the domain by partnering with top firms. This strategy has enabled the company to deliver more value to clients and capitalize on new opportunities.
We continue to maintain a Neutral recommendation on Cognizant in the long run. Nevertheless, the company has a Zacks #2 Rank, which translates into a short-term rating of Buy.