Cognizant has reportedly secured a contract worth over $1 billion from Novartis, the Swiss pharmaceutical giant. This deal encompasses renewals and new projects, including application services, infrastructure, and data and AI-led offerings.

This marks Cognizant's second billion-dollar deal in under a year, following a large contract from UnitedHealth Group. UnitedHealth is one of Cognizant's largest clients, with a partnership spanning almost two decades.

While Cognizant has remained silent on the matter, citing a quiet period, Novartis has yet to respond to requests for comment. Sources familiar with the situation indicate that Cognizant's EMEA and APAC teams were instrumental in securing the deal, under the leadership of Gagan Syal, head of life sciences for EMEA and APAC at Cognizant.

Phil Fersht, CEO of USIT advisory HfS Research, notes that the increase in large IT services deals reflects a change in how enterprises purchase technology. CIOs are consolidating vendors, bundling multiple mid-sized contracts into fewer, broader, and longer-term engagements with clearer accountability. These deals typically span seven to ten years.

According to sources, both mega-deals were directly originated by Cognizant, rather than through conventional Request for Proposal (RFP) processes. The deal includes renewal, expansion, and new components.

This announcement comes at a time when the IT services industry is seeing a slowdown in large, long-term contracts. Cognizant attributes its momentum to its focus on AI-led productivity and transformation initiatives.