Cognizant Buys Trizetto

Cognizant is a global leader in information technology, consulting, and business process services. It provide services such as claims processing, billing and call center operations to insurers, hospitals and some state run health care exchanges set up under President Barack Obama’s affordable care Act, as known as Obamacare. Colorado based Trizetto provides information technology services, including care management and the administration of benefits. 

Cognizant struck up its biggest deal, acquiring healthcare IT services provider Trizetto Corp for $2.7 Billion. It is the biggest acquisition in Indian IT sector. Healthcare is undergoing structural shifts due to reform, cost pressure, and shifting responsibilities between payers and providers. Trizetto will provide Cognizant to increase their market share. In 2008, Apax acquired Cognizant, a London based private equity firm. Trizetto was built up through 16 acquisitions in last 15 years, according to their website. It serves about 350 health care plans and supplies software to almost 245,000 doctors and other care providers.

Following this acquisition, Cognizant grip on the segment will increase further, leaving behind peers like WIPRO, Infosys, and TCS. At present, healthcare accounts for around 26 percent of Cognizant revenue, which is estimated to go up to 30 percent on integration with Trizetto. Cognizant and Trizetto have had a long-term relationship. This acquisition represents a great opportunity to integrate services across three horizons. Traditional IT services, high growth businesses like management consulting, business process services, and IT infrastructure services and will provide greater value to clients.

There are lot of acquisitions and changes going on in Indian Healthcare sector. E-commerce sector is focusing on providing medical facilities online. Companies like Ranbaxy, Cipla, and Sun Pharma are into manufacturing of new medical products. IT sector is all set to provide services to clients and hospitals. Tech giants are developing products which includes health apps or which can tell people health status. We can assume that technology is going to play a major role in Healthcare sector and it is going to benefit millions of people. It is estimated that Healthcare business is to grow at a rapid pace.