Cognizant, TCS and HCLTech Mega Deals Could Boost Hiring Outlook

Cognizant has secured a multi-million-dollar technology services contract from US-based health insurer Centene.

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According to a person familiar with the development, the contract is valued at around $500 million. Centene is an existing Cognizant client, and the new agreement will see the IT services company leverage its TriZetto healthcare platform to manage high-volume medical billing, claims adjudication, and customer contact centre operations.

Although Cognizant has not announced any hiring plans tied to the Centene contract, the multi-year engagement is expected to support demand for healthcare technology, AI, cloud, and digital transformation professionals as the project scales.

Large Deals Drive Growth Strategy

Winning large deals worth $100 million or more has been a central part of CEO Ravi Kumar S.’s growth strategy as enterprises remain cautious about technology spending.

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The company’s deal momentum reflects this focus:

• Cognizant secured 28 large deals in 2025, with total contract value (TCV) growing nearly 50% over 2024.
• During the first quarter of FY27, the company won seven large deals and one mega deal valued at more than $500 million, resulting in over 70% year-on-year growth in large-deal TCV.

Cognizant and Centene had not officially commented on the latest contract at the time of reporting.

Longstanding Healthcare Partnership

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Centene has been one of Cognizant’s long-standing healthcare clients.

The relationship dates back to 2014, when Cognizant signed a $2.7 billion agreement with Health Net to provide consulting, technology, and administrative services across claims management, customer contact centres, membership and benefits administration, IT, quality assurance, appeals and grievance services, and medical management support.

Following Centene’s acquisition of Health Net in 2016, the agreement was restructured as some of the services overlapped with Centene’s existing technology systems.

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Healthcare continues to be one of Cognizant’s largest business segments, contributing about 29% of the company’s revenue, while financial services account for around 30.4%.

AI-Led Mega Deals Gain Momentum Across IT Sector

The latest win comes as discretionary technology spending in the US healthcare sector remains soft, making large transformation deals increasingly important for IT services companies.

Industry experts note that such contracts are largely driven by cost optimisation, vendor consolidation, and AI-led transformation initiatives. While these deals provide long-term revenue visibility, they often take longer to ramp up and can put pressure on operating margins due to intense competition.

The broader Indian IT industry has also witnessed a resurgence in mega deals:

• HCLTech recently announced a $1.14 billion, five-year AI-led contract with a major European client, Mercedes-Benz, with an option to extend it for another five years.
• Tata Consultancy Services (TCS) disclosed an $800 million AI-led deal with industrial technology company SKF during its Q1 FY27 earnings.

Cognizant’s latest contract with Centene further strengthens its position in the healthcare technology market and underscores the growing importance of AI-enabled, large-scale transformation deals as IT services firms navigate a challenging demand environment.

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