Cognizant acquires Utegration to scale up SAP capabilities
What's happening: Cognizant Technology Services, a Nasdaq-listed company, has announced the acquisition of Houston-based Utegration, a full-service consulting and solutions provider specializing in SAP technology and certified products for the energy and utility sectors.
What would this mean: Following the acquisition, which is expected to be completed by the end of 2022, Cognizant will add approximately 350 employees in North America and India. Financial details are awaited.
What was said: Utegration's rich industry expertise and differentiated portfolio of energy and utilities-focused products and accelerators, according to Rob Vatter, the executive vice president of Cognizant's Enterprise Platform Services, is a perfect complement to their SAP practice.
By combining Utegration's experienced, specialist team with their global scale in SAP and digital transformation, Cognizant will have a strong new set of capabilities designed to address the market's critical transformation needs.
Backdrop: Over 50 North American energy and utility clients rely on Utegration for solutions in four areas: customer experience, billing, and advanced metering infrastructure; managed services; data science and analytics; and finance and asset performance management.
Cognizant's other deals: Cognizant acquired AustinCSI, a digital transformation consulting firm, in order to broaden its capabilities in assisting clients with their digital strategies.
Cognizant announced the acquisition of OneSource Virtual, a professional services and application management firm based in Texas, on November 1 in order to supplement its existing finance and HR advisory implementation services with Workday.
The relatively fewer number of acquisitions has led to a slowdown in its digital revenue growth compared to the previous year.
Forecast: Clean energy initiatives, grid modernization, and customer experience management initiatives are expected to drive global IT spending in the power and utilities market to around $175 billion by the end of this year.