Telstra has selected IT service provider Cognizant in order to improve its customer experience and speed to market.
Cognizant, as part of five-year tech deal, will assist in accelerating Telstra’s software engineering and IT capabilities and leverage modern technologies, such as artificial intelligence (AI) to drive innovation and improve operational efficiency.
Cognizant does not reveal the size of the technology services contract with Telsta, one of the leading telecom service providers in Australia. Telstra recently said its capital expenditure increased by $106 million in the first of half of fiscal 2024 thanks to higher spending on software.
The latest IDC report said about 1,800 managed services deals were signed in 2023 worth more than $100 billion in contract value. Roughly 3,000 managed services deals worth more than an estimated $150 billion are expected to be up for renewal in 2024, providing opportunity for IT service providers. More than 200 of these deals are estimated to have a TCV over $100 million.
Cognizant will support Telstra’s strategy to enable more efficient software engineering and IT operations and decommission legacy systems. Moreover, the partnership aims to support employee experience by building a superior engineering experience, fostering a modern and innovative culture within Telstra.
“We’re on a journey of consolidation and simplification across Telstra, streamlining our operations to ensure sustainable growth, and selecting Cognizant as a strategic partner for our software engineering and IT function is a key part of that,” said Kim Krogh Andersen, Group Executive Product and Technology at Telstra.
Cognizant has generated sales of $804 million (up 2.6 percent) in Q1 2024 from the Communications, Media and Technology vertical, accounting for 16.9 percent of its total revenue.
“Our strategic partnership with Cognizant will help us build our modern software engineering capability – defined by modern product engineering practices, the latest tools and a stable workforce,” said Kieran O’Meara, Head of Software Engineering and IT at Telstra.
Baburajan Kizhakedath
