Cognizant buys Idea Couture in further push into digital

By: | Published: July 29, 2016 6:37 AM

Idea Couture has over 170 social clients, strategists, anthropologists, user experience experts, designers and connected product developers who serve companies across multiple industries.

cognizant technologyCognizant has been largely following the tuck-in acquisition strategy where it buys out smaller companies, that are relatively easier to integrate. In January this year, it acquired cloud technology company KBACE Technologies, which had around 400 people.

Cognizant, the Nasdaq-listed IT services company, on Thursday announced the acquisition of Idea Couture, a Toronto-based privately held digital innovation firm for an undisclosed sum. The acquisition will strengthen the digital business of Cognizant, which is projected to be the next big growth area for the technology industry.

Cognizant has been largely following the tuck-in acquisition strategy where it buys out smaller companies, that are relatively easier to integrate. In January this year, it acquired cloud technology company KBACE Technologies, which had around 400 people.

Digital has become a big theme for Indian IT companies and Tata Consultancy Services in its latest first-quarter results said the digital business accounted for 15.9% of its revenue, up from 15.5% in the previous quarter. Wipro also had stated that its total digital ecosystem revenue for the first quarter was at 17.9%. It also has plans to train 20,000 people in digital technologies this year.

Idea Couture has over 170 social clients, strategists, anthropologists, user experience experts, designers and connected product developers who serve companies across multiple industries.

These include Samsung, PepsiCo, Cox, Citi Ventures, Kroger and ConAgra Foods. Idea Couture, which will become part of Cognizant Digital Works, specialises in designing and prototyping products, services and business models that take advantage of the latest technologies. It has offices in the US, Europe, and Latin America.

“Idea Couture has a track record of success in managed innovation, includin rapidly envisioning, designing and prototyping digital solutions, to help companies create connected products, engage customers, and deploy new business models for growth and competitive advantage,” said Gajen Kandiah, executive vice-president, Cognizant Digital Works.

 

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