BENGALURU: Cognizant has lowered its operating margin in the fourth quarter due to impact from impairment of certain capitalized costs related to a large contract with a healthcare customer.
Though Cognizant did not disclose the name of the healthcare client, TOI has learnt that the customer is US health insurance provider EmblemHealth, a not-for-profit health insurer, catering to over three million people in the New York area.
Cognizant has a long association with the health insurer from 2016 to transform and modernize the latter’s technology infrastructure and business processes by migrating and consolidating legacy applications to Oracle’s platform across its finance, human resources and supply chain systems.
In a recent filing, Cognizant said its operating margin is expected to be 30 basis points lower to 15.3% in the fourth quarter due to impact from certain capitalised costs. “The impairment is principally driven by the company’s expectation of lower volumes.’ Some sources said Cognizant’s contract with EmblemHealth is estimated to be around $700 million. An email sent to Cognizant on the impact and size of engagement with EmblemHealth didn’t elicit a response. However, an EmblemHealth spokesperson said, “The details of our engagement with Cognizant are confidential, so we cannot provide further comment.
Though Cognizant did not disclose the name of the healthcare client, TOI has learnt that the customer is US health insurance provider EmblemHealth, a not-for-profit health insurer, catering to over three million people in the New York area.
Cognizant has a long association with the health insurer from 2016 to transform and modernize the latter’s technology infrastructure and business processes by migrating and consolidating legacy applications to Oracle’s platform across its finance, human resources and supply chain systems.
In a recent filing, Cognizant said its operating margin is expected to be 30 basis points lower to 15.3% in the fourth quarter due to impact from certain capitalised costs. “The impairment is principally driven by the company’s expectation of lower volumes.’ Some sources said Cognizant’s contract with EmblemHealth is estimated to be around $700 million. An email sent to Cognizant on the impact and size of engagement with EmblemHealth didn’t elicit a response. However, an EmblemHealth spokesperson said, “The details of our engagement with Cognizant are confidential, so we cannot provide further comment.
For all the latest business News Click Here
Denial of responsibility! TechAI is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
