UBS’ insourcing revolution shakes Cognizant
Outsourcing giant Cognizant has had to let dozens of staff in Switzerland go as UBS continues its policy of bringing entire IT departments back in-house under CEO Ralph Hamers.
Last year, Cognizant lost around $60 million worth of business after UBS elected not to renew a service contract. As a result, Cognizant faced making 70 to 80 consultants working for UBS redundant.
According to finews.com, UBS used to pay Cognizant up to $330 million a year for IT services and business process outsourcing. The source also reported that Cognizant’s recent ransomware attack is one of the reasons why UBS decided to move its IT operations in-house.
