COGNIZANT Technology Solutions on Wednesday said it had reached a deal to take over the Indian operations of German telecom operator Deutsche Telekom’s IT services division as part of a partnership to jointly provide system integration services.The alliance will result in the transfer of T-Systems India-and its approximately 1,150 employees to Cognizant, with the US-based company saying it expects to generate revenues of at least $40 million in the first year of the partnership. Cognizant, which saw off competition for the deal from India’s biggest software exporter, TCS, declined to divulge further financial details. “Today's announcement is about a long-term partnership.The financial component of the asset transfer in the form of a share purchase will simply occur at book value,” Cognizant president and MD R Chandrasekaran told ET by e-mail.Analysts said the alliance would give Cognizant a firmer foothold in the European market while allowing T-Systems to benefit from its partner’s offshoring capabilities to win new clients. Easier access is especially seen for the Nasdaq-listed company in Germany, a reluctant outsourcer. “T-Systems was functioning as a shared services centre of Deutsche Telekom in India and developed very good processes internally. But it was restricted in the number of clients it served.Source: ET, Chennai
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