Cognizant and Gentherm Sign Agreement for Strategic Product Engineering Services and Development of a New Delivery Center
Rhea-AI Summary
Cognizant (NASDAQ: CTSH) has entered an agreement with Gentherm (NASDAQ: THRM) to provide advanced engineering services, including systems engineering, validation, and model-based development. This collaboration will be centered in Hyderabad, India, where Cognizant has established a dedicated delivery and test facility for Gentherm.
The partnership aims to develop next-generation thermal management and pneumatic comfort technologies for the automotive industry, enhancing vehicle experiences and improving operational agility and efficiency. Cognizant will contribute its AI and Cloud Software Engineering expertise to help accelerate Gentherm's product development and market entry.
Both companies emphasize the importance of collaboration to drive innovation and meet the growing demands for software-defined vehicles.
Positive
- Cognizant's collaboration with Gentherm aims to develop next-generation automotive technologies, potentially boosting CTSH's market position.
- Establishment of a dedicated delivery and test facility in Hyderabad enhances R&D capabilities for both companies.
- Cognizant's AI and Cloud Software Engineering expertise could accelerate product development and reduce time to market for Gentherm.
- The agreement underscores Cognizant's role in driving innovation in the automotive sector, potentially attracting more clients and projects.
Negative
- The financial impact of establishing a new delivery center and test facility may increase operational costs for Cognizant in the short term.
- Dependence on the success of Gentherm's products adds risk; if Gentherm's market performance declines, it may negatively impact Cognizant's revenues.
News Market Reaction
On the day this news was published, CTSH gained 1.96%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Agreement expected to help develop next generation of innovative products, elevate customer vehicle experiences, and improve everyday life
The collaboration also features a dedicated delivery center to augment Gentherm's development of software and technologies that aim to improve agility, scalability, and efficiency in its product development.
"We are excited to help Gentherm continue to deliver exceptional thermal comfort and lumbar support solutions for the next generation of vehicles," said Aditya Pathak, VP & Head of Cognizant's Automotive, Transportation & Logistics Business Unit. "Our automotive engineering expertise, along with our market leading AI and Cloud Software Engineering capabilities, are helping automotive manufacturers and suppliers build high quality, innovative solutions, while accelerating their time to market."
"One of the keys to unlocking innovation is creating a culture of collaboration among automakers, suppliers and technology companies," said Vishnu Sundaram, Gentherm's CTO. "As we deliver solutions to address the needs of our customers, including the growing needs of software-defined vehicles, Cognizant will be an invaluable innovation partner to extend our technology leadership."
Cognizant is leveraging its experience with cloud native technologies and virtualization to guide Gentherm in the transformation process to its next generation targets in Product Design, Product Launch, and Continuous Delivery.
About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.
About Gentherm
Gentherm (NASDAQ: THRM) is the global market leader of innovative thermal management and pneumatic comfort technologies for the automotive industry and a leader in medical patient temperature management systems. Automotive products include variable temperature Climate Control Seats, heated automotive interior systems (including heated seats, steering wheels, armrests and other components), battery performance solutions, cable systems, lumbar and massage comfort solutions, valve system technologies, and other electronic devices. Medical products include patient temperature management systems. The Company is also developing a number of new technologies and products that will help enable improvements to existing products and to create new product applications for existing and new markets. Gentherm has more than 14,000 employees in facilities in
CONTACT: Maribel Lopez, maribel.lopez@cognizant.com
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SOURCE Cognizant Technology Solutions Corporation
FAQ
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