Cognizant and Victory Capital to Extend Relationship with Five-Year Agreement

Rhea-AI Summary

Cognizant (NASDAQ: CTSH) has announced a five-year strategic collaboration with Victory Capital Holdings, Inc. (NASDAQ: VCTR), a global asset management firm. Cognizant will provide Victory Capital with technology infrastructure, security, and data and analytics capabilities, including infrastructure management, security engineering, a 24/7 security operations center, and comprehensive service desk support.

The collaboration aims to deliver reliable, scalable, and secure IT solutions, with Cognizant committed to providing new service management capabilities, improved service productivity, cost savings, and scalability support for Victory Capital's business growth. This extends a decade-long partnership between the two companies, during which Cognizant has assisted Victory Capital in transforming its IT landscape and implementing technology for its new headquarters in San Antonio, Texas.

Positive

• Five-year strategic collaboration with Victory Capital, extending existing partnership
• Provision of comprehensive IT infrastructure, security, and data analytics services
• Potential for improved service productivity and cost savings for Victory Capital
• Opportunity for Cognizant to leverage its expertise in the investment management industry

Negative

• None.

Tech Expert

Cognizant's extension of its relationship with Victory Capital for another five years is a significant move in the IT and asset management sectors. This partnership will include IT infrastructure management, security engineering and data analytics. These are core aspects for any firm looking to scale efficiently and securely, making this deal noteworthy.

From a technological perspective, reliance on Cognizant for a comprehensive set of services means Victory Capital is prioritizing reliability, security and scalability. The inclusion of a 24/7 security operations center and end-user support through a service desk are critical enhancements, showcasing an approach focused on minimizing downtime and maximizing productivity. Given the rising cybersecurity threats, bolstering security through experienced partners like Cognizant is strategic.

This extension indicates a successful past collaboration. However, the actual outcome will hinge on Cognizant's ability to deliver on these promises. Investors should watch for updates on specific enhancements, service improvements and any reported efficiency gains over the next quarters.

Financial Analyst

From a financial standpoint, this extended deal between Cognizant and Victory Capital could lead to cost efficiencies and improved service productivity. This partnership is likely to bring cost savings to Victory Capital, allowing it to scale its operations without proportional increases in costs. Additionally, consistent and reliable IT infrastructure and support can minimize operational disruptions, contributing to more stable financial performance.

For Cognizant, this agreement underscores its role as a key player in the IT services market, especially within the financial services sector. This reinforces their market position and could lead to increased investor confidence in their ability to secure and maintain long-term contracts with significant clients. While these developments are positive, investors should remain cautious about the execution risks involved in such extensive partnerships.

Market Research Analyst

Extending this strategic partnership reflects trends in the digital transformation of the asset management industry. Firms like Victory Capital are increasingly focusing on leveraging technology to enhance operational efficiency and client service. This move aligns with the broader market trend towards digitalization and cybersecurity enhancement.

For retail investors, understanding this industry trend is crucial. Companies that proactively invest in their IT infrastructure and security are more likely to sustain long-term growth and resilience against market volatilities and cyber threats. This partnership extension could be seen as a commitment by Victory Capital to maintain its competitive edge through technological advancements.

Cognizant will provide IT infrastructure, security, and data and analytics support to Victory Capital's next phase of digital transformation.

TEANECK, N.J., July 17, 2024 /PRNewswire/ -- Cognizant (NASDAQ: CTSH) announced today a five-year strategic collaboration with Victory Capital Holdings, Inc. (NASDAQ: VCTR) ("Victory Capital"), a diversified global asset management firm. Cognizant anticipates providing Victory Capital with technology infrastructure, security, and data and analytics capabilities, which will include infrastructure management, security engineering, a 24/7 security operations center, and a comprehensive service desk, which will provide infrastructure and application monitoring and end-user support.

This strategic relationship aims to deliver reliable, scalable, and secure IT solutions. Cognizant is committed to delivering several key capabilities for Victory Capital over the next five years. These include new service management capabilities, improved service productivity, cost savings, and the ability for Victory Capital to cost-effectively scale in support of business growth.

Over the years, Cognizant has partnered with Victory Capital to help design and transform its IT landscape. Additionally, Cognizant assisted Victory Capital with the technology engineering and implementation for its new headquarters in San Antonio, Texas, in 2019.

"Cognizant has been a trusted partner for Victory Capital for more than a decade, providing us with reliable, scalable, and secure technology solutions that have supported our growth in a dynamic market environment," said Ian Sale, Chief Operating and Technology Officer of Victory Capital. "We are confident that our strategic relationship with Cognizant will advance service delivery, flexibility and efficiency, enabling continued operational excellence and innovation."

"We are delighted to extend our relationship with Victory Capital, a valued client and a leader in the investment management industry," said Nageswar Cherukupalli, Senior Vice President & Business Unit Head of Banking & Capital Markets and Strategic Initiatives of Cognizant. "We look forward to continuing to leverage our deep domain expertise, digital capabilities, and global delivery network to help Victory Capital serve its clients."

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.

About Victory Capital 
Victory Capital is a diversified global asset management firm with $173.8 billion in total client assets as of June 30, 2024. The Company employs a next-generation business strategy that combines boutique investment qualities with the benefits of a fully integrated, centralized operating and distribution platform.

Victory Capital provides specialized investment strategies to institutions, intermediaries, retirement platforms and individual investors. With 11 autonomous Investment Franchises and a Solutions Business, Victory Capital offers a wide array of investment products and services, including mutual funds, ETFs, separately managed accounts, alternative investments, third-party ETF model strategies, collective investment trusts, private funds, a 529 Education Savings Plan, and brokerage services.

Victory Capital is headquartered in San Antonio, Texas, with offices and investment professionals in the U.S. and around the world. To learn more please visit www.vcm.com or follow Victory Capital on Facebook, Twitter, and LinkedIn.

Contact:
Katrina Cheung | katrina.cheung@cognizant.com

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SOURCE Cognizant Technology Solutions Corporation

FAQ

What services will Cognizant (CTSH) provide to Victory Capital in their new agreement?

Cognizant will provide Victory Capital with technology infrastructure, security, and data and analytics capabilities, including infrastructure management, security engineering, a 24/7 security operations center, and a comprehensive service desk for infrastructure and application monitoring and end-user support.

How long is the new agreement between Cognizant (CTSH) and Victory Capital?

The new agreement between Cognizant and Victory Capital is a five-year strategic collaboration.

What are the expected benefits for Victory Capital from this collaboration with Cognizant (CTSH)?

The collaboration aims to deliver reliable, scalable, and secure IT solutions, with expected benefits including new service management capabilities, improved service productivity, cost savings, and the ability for Victory Capital to cost-effectively scale in support of business growth.

How long has Cognizant (CTSH) been working with Victory Capital?

Cognizant has been a trusted partner for Victory Capital for more than a decade, providing technology solutions and assisting with IT landscape transformation.