A multi-year deal of greater than $300 million from Daimler Vehicles that Cognizant Know-how Options Corp. snatched from Infosys Ltd final week has one frequent thread: Ravi Kumar.
Kumar, Cognizant’s present chief govt, was additionally instrumental in securing the Infosys contract throughout his stint at India’s second-largest software program companies supplier in 2020, based on an individual aware of the matter. He joined Cognizant as its CEO in January 2023.
“He was one of many individuals answerable for the shopper, and now he has received it again for his present agency. It’s one of many massive offers he received again from his earlier agency,” mentioned this individual, who didn’t wish to be recognized since particulars aren’t public.
On 24 February, Nasdaq-listed Cognizant received a office companies transformation take care of the German truck maker. The corporate will use considered one of its proprietary software program to handle worker queries and procure important {hardware} and software program wanted to run the truck firm’s workplaces, amongst different duties.
In December 2020, Infosys signed a $3.2 billion, eight-year IT transformation take care of Daimler, making it considered one of its three largest purchasers. Underneath the phrases, Infosys would supply companies throughout six enterprise divisions, together with community companies, cybersecurity, SAP software program, information centres, after-sales name companies, and office options or the IT procurement enterprise–the largest of the six arms, a portion of which is now with Cognizant.
Daimler break up into the Mercedes-Benz Group and Daimler Vehicles in December 2021, however each models retained Infosys for his or her IT companies.
Nevertheless, Infosys and Daimler encountered execution points with the deal. Miint had reported on 12 January that Infosys Ltd risked shedding over a 3rd of its $400 million annual income from Daimler, because the German group sought new IT distributors for software program and gear following execution delays.
Automation a part of deal
Cognizant didn’t disclose the monetary particulars of the Daimler deal. Nevertheless, two individuals aware of the matter, together with the individual quoted earlier, mentioned it’s valued upwards of $300 million and runs for 5 years. That interprets to $60 million yearly for the following 5 years, which is anticipated so as to add 0.3% to Cognizant’s full-year prime line.
Teaneck, New Jersey-based Cognizant, which follows a January-December monetary calendar, ended 2025 with $21.12 billion in income. The administration guided for income of $22.14-22.66 billion this yr, translating right into a development of 4.9-7.4%.
Mint couldn’t independently verify whether or not the incremental enterprise is already factored into its present steering.
Cognizant would come with automation as a part of the deal.
“By making use of synthetic intelligence on the core of the office, alongside automation, human‑centric design and accountable governance, we’re serving to allow a extra clever, resilient and future‑prepared atmosphere for Daimler Truck’s international workforce,” Kumar mentioned within the firm’s press launch.
Queries emailed to Cognizant on Thursday remained unanswered. Daimler Vehicles mentioned it doesn’t present data on provider relationships.
Turnaround underway
Cognizant is within the early phases of a turnaround. In 2025, the corporate reported full-year income development of 6.95%, the quickest in 4 years. The software program and consultancy companies supplier beat analyst estimates and surpassed personal expectations, rising sooner than friends together with Tata Consultancy Companies Ltd, Infosys Ltd, HCL Applied sciences Ltd, and Wipro Ltd.
That is in distinction with its efficiency until 2023, when its income shrank.
The revival is pushed by mega offers. The corporate signed three contracts valued at $1 billion or extra final yr, increased than any of its prime 5 friends. Cognizant can be mulling itemizing shares in India, which analysts say is geared toward bettering its valuation.
Kumar joined Cognizant as its chief govt in January 2023, after working at Infosys for about twenty years, most not too long ago as its president till October 2022. His transition to Cognizant additionally triggered one other level in an ongoing court docket battle.
Infosys accused Kumar of intentionally delaying the roll-out of its claims processing software program whereas he was in talks to affix Cognizant, Mint reported on 10 January 2025. Infosys additionally accused him of attempting to poach individuals whereas in talks to affix Cognizant.
At the least 10 former Infosys executives had adopted Kumar to Cognizant when he took over as CEO in January 2023. Whereas seven of them joined instantly from Infosys in numerous management positions, three served stints of 10 or extra months in different corporations.
Not simply individuals, Ravi Kumar additionally took with him ‘murmurations,’ a crowdsourcing concept that Sikka had come up throughout his stint as Infosys CEO in 2014. Kumar launched Bluebolt, an inner crowdsourcing platform the place workers throughout groups might pitch concepts both for purchasers or internally.
Cognizant’s shares are up 4.5% since he was named CEO on 12 January 2023. In distinction, TCS and Infosys’ shares fell 14.2% and 4.3%, respectively, through the interval. HCLTech’s shares have risen 46%.