In an era shaped by global trade volatility and rising tariffs, leading Indian IT giants Infosys and Cognizant are tapping into the power of vendor consolidation to stay ahead. As client enterprises face economic uncertainty, many are streamlining their technology partnerships by choosing fewer but more versatile service providers. This strategic simplification aims to lower operational costs while improving delivery consistency.
This trend came into sharper focus during the Bank of America Securities Global Tech Conference, where Cognizant’s Americas President, Surya Gummadi, shared insights on evolving client preferences. He noted that businesses now seek comprehensive solutions from a limited number of trusted partners, capable of offering end-to-end, integrated services. Cognizant preference is increasingly tied to performance-based and outcome-focused contracts, a shift driven further by the widespread integration of generative AI into business workflows.
Despite economic headwinds, Cognizant has demonstrated notable growth. In 2024 alone, the company closed 29 large-scale deals, a significant rise from 17 the previous year. It also secured a billion-dollar extension of a key U.S. healthcare contract, and Cognizant annual bookings surged to 27.1 billion dollars, reflecting strong client confidence and strategic focus.
Infosys, too, is seeing a growing interest in vendor consolidation deals. According to market analysts, while fresh project inflows have slowed across the sector, consolidation-led partnerships are emerging as vital growth drivers. These types of collaborations not only deepen client trust but also enable IT firms to demonstrate their full-stack capabilities on a global scale.
The message is clear—tech firms that offer scalable, intelligent, and value-centric services are becoming the preferred allies for companies navigating digital transformation in complex environments. With fewer players handling broader mandates, the future of IT services appears more streamlined, efficient, and deeply strategic.
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