Cermaq Extends Collaboration with Cognizant to Further Enhance Operational Efficiencies

Rhea-AI Summary

Cognizant (CTSH) renews collaboration with Cermaq Group AS, a global salmon producer, to provide managed infrastructure services, modernize cloud landscape, and drive digital transformation in Norway and Canada. The partnership aims to simplify, modernize, and secure Cermaq's technology landscape, reduce costs, speed up time to market, and ensure stable operations. Cognizant will play a key role in Cermaq's IT operations, enabling entities in Norway and Canada to own their IT landscape within a centralized governance framework.

Insights

Market Research Analyst

The partnership between Cognizant and Cermaq represents a strategic move in the digital transformation landscape, particularly within the aquaculture and seafood industry. With the focus on modernizing infrastructure and adopting cloud technologies, there is a clear trend towards efficiency and scalability. This shift is not only relevant to the companies involved but also indicative of broader market trends where technology plays a pivotal role in operational excellence.

The integration of AI and Gen AI into Cermaq's operations could potentially lead to significant improvements in supply chain management, predictive maintenance and overall decision-making processes. This modernization may also provide competitive advantages by reducing costs and enhancing product quality, which are key factors in maintaining market share and customer satisfaction. The initiative could, therefore, signal a positive outlook for investors, as it may lead to a more resilient and agile business model capable of responding to market changes.

Financial Analyst

The renewal of the partnership between Cognizant and Cermaq is likely to have financial implications for both companies. For Cognizant, this deal solidifies their revenue stream from a long-term client and showcases their capability in managing large-scale digital transformations. Investors should note the potential for improved margins due to economies of scale and the adoption of cutting-edge technologies that may streamline operations.

For Cermaq, the investment in IT modernization, while potentially substantial, is expected to reduce the total cost of ownership over time. This could be reflected in improved financial metrics in the long run, such as EBITDA margins and return on investment. The emphasis on reducing time to market and enhancing efficiency could also lead to revenue growth, making this an important development for stakeholders tracking the company's performance.

Sustainability Analyst

The collaboration's focus on sustainability through the adoption of cloud technologies and AI aligns with the increasing demand for environmentally responsible business practices. Cognizant's role in Cermaq's digital transformation could lead to more sustainable operations by optimizing resource use and reducing waste. This is particularly relevant in the context of the blue economy, where sustainable practices are critical to long-term viability.

Investors with an interest in environmental, social and governance (ESG) criteria may view this partnership positively, as it demonstrates Cermaq's commitment to sustainability through technological innovation. The potential improvements in ocean health monitoring and sustainable food production could enhance Cermaq's reputation and brand value, which are increasingly important factors for consumers and investors alike.

Cognizant will provide managed infrastructure services and seek to modernize Cermaq's cloud landscape as a digital transformation partner in Norway and Canada

TEANECK, N.J., March 20, 2024 /PRNewswire/ -- Cognizant (Nasdaq: CTSH) has today announced its renewed collaboration with Cermaq Group AS, a leading global salmon producer driving the transition of systems towards healthier and more climate-friendly foods. The renewal comes after an existing ten-year relationship between the two companies which has enabled Cognizant to reliably act as a strategic ally on Cermaq's path towards digital modernization. The collaboration will cover both the Norwegian and Canadian entities for Cermaq.

Throughout the agreement term, Cognizant will seek to simplify, modernize, and secure Cermaq's technology landscape across infrastructure services, On-Premise and Cloud, while also testing out the latest technology trends including AI and Gen AI. Cognizant will aim to reduce the total cost of ownership, speed up time to market, lay the foundations for the digital enablement of Cermaq globally, and ensure stable operations of the infrastructure. As a result of this modernization, Cermaq's clients can expect to experience a consistent and steady value chain thanks to stable infrastructure operations.

Food production companies, similar to Cermaq, are seeing the benefits of modernizing their digital infrastructure and adopting the latest technology to help improve efficiency and reliability, especially with current global supply chain demands and strains. Cermaq is on the threshold of taking the next step in expanding its IT footprint and enabling the entities in Norway and Canada to own their IT landscape within a centralized governance framework. Cognizant is a part of Cermaq's cloud governance group and is playing a major advisory role to help ensure the framework is set up sufficiently so that the entities are independent, self-sufficient, and cohesive while aligning to the security and compliance guidelines agreed at a global level.

Davor Crnoja, Head of Global IT at Cermaq Group AS, said: "We are pleased to continue our collaboration with Cognizant, our trusted partner for the past decade. Following a lengthy and thorough RFP process, we carefully evaluated potential partners and are confident that Cognizant is the ideal choice to guide Cermaq's IT operations. This partnership has been instrumental in shaping our technology landscape, and we look forward to leveraging Cognizant's expertise to achieve new milestones. With a focus on simplifying, modernizing, and securing our infrastructure, we anticipate even greater efficiency and reliability in our IT operations."

Knut Inge Buset, Country Manager of Cognizant Norway, said: "We are thrilled to be continuing our collaboration after ten-years of providing reliable and strategic counsel to Cermaq as they modernize their technology and infrastructure. Cognizant's presence is the catalyst in helping both Cermaq's individual entities and the global organization achieve their goals and mobilizing them towards adopting newer technologies as they emerge to keep pace with the market. Norway is one of the leading countries for seafood production and relies heavily on the blue economy. Through our collaboration with Cermaq we look forward to evolving our expertise in the Nordic Aquaculture and Seafood industry."

In order to further support ocean health, Cognizant launched its business unit Cognizant Ocean in 2023. The aim is to find new areas of innovation in aquaculture, or water farming of fish, improve sustainable food production, while feeding the world by monitoring the behavior and welfare of thousands of individual fish over time.

About Cermaq
Cermaq is a leading global salmon producer driving transition of our food system towards healthier and more climate-friendly food. Our approach is transparency, performance, and partnerships, setting ambitious climate goals, innovation for clean farming, and scaling impact and ripple effects through local and global partnerships.

As a global organization, we are aware of the challenges being faced around the world from climate change, ocean debris and micro-plastics, declining natural fish stocks, and loss of arable lands for traditional protein farming.

We are supporting the United Nations and its work to combat these issues and are proud members of the United Nations Global Compact Ocean Stewardship Coalition. For more information, please visit: www.cermaq.com  

About Cognizant  
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.

For more information, contact:
EMEA / APAC / Americas: Christina Schneider  christina.schneider@cognizant.com	India: Rashmi Vasisht  rashmi.vasisht@cognizant.com

 

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SOURCE Cognizant Technology Solutions

FAQ

What is the renewed collaboration between Cognizant and Cermaq Group AS about?

The collaboration involves providing managed infrastructure services, modernizing Cermaq's cloud landscape, and driving digital transformation in Norway and Canada.

What are the main objectives of the partnership between Cognizant and Cermaq Group AS?

The partnership aims to simplify, modernize, and secure Cermaq's technology landscape, reduce costs, speed up time to market, and ensure stable operations.

What role will Cognizant play in Cermaq's IT operations?

Cognizant will be a key advisor in Cermaq's IT operations, helping to enable entities in Norway and Canada to own their IT landscape within a centralized governance framework.

What is Cognizant's business unit Cognizant Ocean focused on?

Cognizant Ocean aims to find new areas of innovation in aquaculture, improve sustainable food production, and monitor the behavior and welfare of individual fish over time.