Etex and Cognizant team up to boost innovation with AI and Automation

Rhea-AI Summary

Cognizant (CTSH) has extended its partnership with Etex, a global sustainable building materials company, through a new five-year agreement. The collaboration focuses on implementing GenAI and chatbot solutions to enhance user experience and automate tasks across IT services, including applications, workplace collaboration, network security, hosting, service delivery, and data management.

The primary objectives of this partnership are cost reduction and service optimization. Etex's CDIO highlighted that Cognizant's AI solutions will help address market challenges, reduce costs, and improve adaptability. Cognizant's Country Head for Belgium & Luxembourg emphasized their agile delivery model's capability to scale quickly and support Etex in managing cost pressures.

Positive

• Secured five-year extension of existing partnership with global building materials leader
• Implementation of GenAI and chatbot solutions expected to reduce operational costs
• Expansion of services across multiple IT domains indicates deeper business integration

Negative

• None.

Insights

Enterprise Technology Analyst

This strategic contract extension with Etex demonstrates Cognizant's successful execution in the highly competitive European IT services market. The five-year commitment is particularly significant as it validates Cognizant's AI and automation capabilities at a time when enterprise clients are scrutinizing tech spending.

Several key aspects make this deal noteworthy for investors:

• The comprehensive scope covering multiple IT service areas positions Cognizant to capture a larger share of Etex's technology spending, potentially leading to higher revenue per client.
• The focus on GenAI and chatbot solutions aligns with the industry's highest-growth segments, where profit margins typically exceed traditional IT services by 15-20%.
• The emphasis on cost reduction for the client through automation suggests a value-based pricing model, which could help protect margins despite market pricing pressures.

The deal's timing is particularly strategic as it coincides with a period when enterprises are prioritizing AI integration while simultaneously seeking cost efficiencies. This contract model could serve as a template for similar deals with other industrial clients, potentially creating a multiplier effect for Cognizant's AI services revenue.

The extension also provides important revenue visibility and stability, particularly valuable in the current market environment where new deal closures face longer sales cycles. While the exact contract value isn't disclosed, similar comprehensive digital transformation engagements in the industry typically range from $50 to $100 million over a five-year period.

Renewed collaboration will see Cognizant provide support across IT services with the aim of reducing overall costs and significantly improving the user experience

BRUSSELS, Feb. 18, 2025 /PRNewswire/ -- Cognizant (Nasdaq: CTSH) today announced the extension of its agreement with Etex, a global leader in sustainable building materials and lightweight construction. The five-year collaboration will involve implementing specific GenAI and chatbot solutions to enhance user experience and automate tasks, ensuring stable and optimized delivery.

The use of AI and automation will help support a range of IT services including applications, workplace collaboration, network security, hosting and service delivery, and data with the aim of reducing costs across the business.

"We are thrilled to continue working with Cognizant," said Dirk Altgassen, Chief Data & Information Officer (CDIO) at Etex. "By using their cutting-edge AI and automation solutions, we can tackle tough market conditions, cut costs, and improve our adaptability and efficiency. Cognizant's proven dedication and high standards make them a valuable partner for Etex as we continue to create safe, sustainable, and beautiful buildings for our customers."

"We are delighted to continue our collaboration with Etex," said Geert Lejon, Country Head, Belgium & Luxembourg at Cognizant. "Our expertise in AI and automation will enable us to support Etex in overcoming cost pressures and navigating the dynamic market landscape. Our agile delivery model helps ensure we are positioned to scale up swiftly. Working with Etex has been a rewarding experience, and we look forward to achieving even greater success together."

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 Etex
We are an innovative and sustainable building materials company and a pioneer in lightweight construction. Our 13,500 teammates operate on more than 160 sites and at seven Innovation Technology Centres (ITC) in 45 countries globally.

Etex is a global building material manufacturer and pioneer in lightweight construction. Etex wants to inspire people around the world to build living spaces that are ever more safe, sustainable, smart and beautiful.

Founded in 1905, headquartered in Zaventem, Belgium, Etex is a family-owned company with more than 13,500 employees globally. It operates more than 160 sites in 45 countries and recorded a revenue of EUR 3.808 billion and a REBITDA of EUR 712 million in 2023. Etex fosters a collaborative and caring culture, a pioneering spirit and a passion to always do better for its customers.

Etex has seven R&D centres supporting four global divisions:

• Building Performance: leader in plasterboards and fibre cement boards, and the global reference in fire protection solutions for the residential and commercial segments.
• Exteriors: provider of innovative, durable, high performance and beautiful fibre cement exterior materials for architectural, residential and agricultural projects.
• Industry: front runner of engineering expertise to drive the future of high-performance temperature insulation and fire protection in the industrial, aerospace and energy sectors.
• Insulation: leading European insulation provider of glass mineral wool and extruded polystyrene (XPS) to insulate residential and non-residential buildings.

Etex's global portfolio includes leading commercial brands such as Cedral, Durlock, EQUITONE, Eternit, Gyplac, Kalsi, Pladur, Promat, Siniat, Superboard and URSA.

Etex is Inspiring Ways of Living, for more information, please visit our website: www.etexgroup.com

For more information, contact: GlobalPR@cognizant.com

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SOURCE Cognizant Technology Solutions

FAQ

What is the duration of Cognizant's (CTSH) new agreement with Etex?

Cognizant's new agreement with Etex is for five years.

What technologies will Cognizant (CTSH) implement for Etex under the new agreement?

Cognizant will implement GenAI and chatbot solutions, along with various IT services including applications, workplace collaboration, network security, hosting, and service delivery.

What are the main objectives of the Cognizant-Etex partnership renewal?

The main objectives are reducing overall costs and significantly improving user experience through AI and automation implementation.

How will Cognizant (CTSH) help Etex address market challenges?

Cognizant will help Etex address market challenges through cutting-edge AI and automation solutions that improve adaptability, efficiency, and reduce costs.