- The company has been downsizing letting go of about 9000 employees during the last quarter.
Bengaluru: IT solutions and services firm Cognizant says it will acquire Chicago-based 10th Magnitude, a cloud specialist focused exclusively on the Microsoft Azure cloud computing platform.
This is its sixth cloud-related acquisition in 2020, highlighting continued acceleration and execution of its cloud strategy. According to a statement by Cognizant, the acquisition will expand the Microsoft Azure expertise within the company’s new Microsoft Business Group, adding development and managed services hubs in major cities throughout the US.
10th Magnitude, one of Microsoft’s Azure-centric partners, offers advisory and managed services, including data centre transformation, application modernization, and data intelligence with AI-driven analytics and insights.
“Modernizing business platforms by shifting to the cloud is a key priority for our clients,” said Greg Hyttenrauch, President, Cognizant Digital Systems and Technology.
“The ability to pivot, innovate, remain flexible and resilient, with remote access to key applications, is especially important in these uncertain times,” said Alex Brown, Chief Executive Officer, 10th Magnitude.
The moves comes amidst a revival in business after initial setbacks due to Covid-19 and the ransomware attack. The company has been downsizing letting go of almost 9000 employees during the last quarter.
Both companies have not revealed the financial terms of the agreement. Cognizant reported Second-quarter revenues of $4 billion even as it reported that revenues across its business segments were affected by the coronavirus pandemic and the ransomware attack in April.
While it took a hit in its financial services, insurance, retail and communications, Media and Technology clientele, revenues from healthcare clientele increased by 2-2 per cent.