Cognizant, the fastest growing of the top tier India-centric IT/BP services players, is to boost its presence in the US business process services (BPS) market by acquiring the Indian captive of NYSE-listed, California-based consumer data and analytics firm, CoreLogic. Cognizant is to pay a $50m sticker price for the captive in exchange for a $324m, 5-year outsourcing deal with the parent company. Cognizant will take on CoreLogic’s 4,000 Indian employees. CoreLogic’s client base is primarily in the U.S. mortgage and real estate markets.
Although on the face of it this looks like a traditional “I’ll buy yours, you buy mine” type of outsourcing deal, there is a hint in the announcement that the relationship may go deeper, perhaps in terms of joint go-to-market for CoreLogic’s services. Cognizant is very keen to boost its BPS propositions, especially platform-based (see Platform defines Cognizant's BPS strategy), so we suspect the CoreLogic deal will become yet another piece in its jigsaw of BPS offerings.