Cognizant, a leading IT services company, is witnessing a noteworthy shift in its revenue dynamics. In the recent June quarter, while its financial services (BFSI) revenue stood at $1.46 billion, its healthcare segment closely followed with $1.40 billion. Notably, BFSI constitutes 31% of Cognizant’s total revenue, while healthcare makes up 29%. The healthcare sector’s ascent is attributed to rising IT spending in healthcare and its steady growth, while BFSI faces challenges across the IT industry.
Cognizant’s healthcare revenue has been steadily gaining ground, even outpacing competitors like TCS, Infosys, and Wipro combined in this segment. With a 2% growth in health sciences revenue, driven by demand for integrated software solutions, Cognizant is well-positioned in the healthcare technology industry. Industry experts predict that healthcare and life sciences will become its largest vertical, given the struggles faced by financial services due to economic factors.
Cognizant’s healthcare success is highlighted by partnerships with major players like Aetna, United Healthcare, and Pfizer. Notably, Cognizant recently expanded its collaboration with Gilead Sciences in a deal valued at over $800 million, focusing on digital transformation and IT infrastructure management. The acquisition and integration of TriZetto, along with collaborations like Microsoft Cloud for Healthcare, have bolstered Cognizant’s dominance in healthcare services. Overall, Cognizant’s healthcare sector is on the cusp of becoming its primary revenue driver, showcasing the firm’s strategic prowess in an evolving market landscape.
