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Time of India
2 days ago
- Business
- Time of India
Inside Capgemini's $3 billion deal for WNS: All you need to know
French IT services major Capgemini is keen on building its business process outsourcing (BPO) muscle with its latest acquisition: domain leader WNS . The deal, announced on Monday, will see the two companies pool their capabilities to address the growing enterprise demand for advanced, automated however, remain over the prospects. Analysts and investors are worried about the impact of artificial intelligence (AI) on the BPO sector, and the subsequent hit on revenue from the vertical. Capgemini shares reflected these worries during yesterday's take a look at the bones of the deal, and it's likely implications:Capgemini had agreed to pay $76.5 for each WNS share, which amounts to $3.3 billion (about Rs 28,280 crore) in cash. This is 17% higher than the closing price of the shares on July 3. They rallied 14% on IT major has secured bridge financing of €4 billion to pay this sum, as well as meet some other obligations. It will refinance the bridge with €1 billion cash and the rest through debt boards of both companies have consented to the deal, which now awaits approval from WNS shareholders and regulators. It is expected to be closed by the end of expects the acquisition to immediately boost its revenue and margins, projecting a 4% rise in earnings per share (EPS) in 2026 and 7% the year after. It sees projected revenue synergies between €100–140 million ($117.8–164.9 million), and an annual pretax run rate for cost and operating model synergies of between 50 million and 70 million euros by the end of WNS's $1.3 billion in revenue will be a drop in Capgemini's $25.5 billion business. It will, however, raise the headcount of the combined entity by a whopping 19%—an indication of the manual nature of WNS's deal comes at a time when enterprises are looking to replace people-intensive business operations with AI-driven solutions for lower costs and efficient execution. Pure-play BPO companies lack the technical knowhow to address this demand, according to HFS Research founder Phil Fersht. That is a gap the Capgemini-WNS combine can capitalise on.'By combining consulting, technology, and domain-driven BPO, Capgemini + WNS has the potential to lead AI-powered business transformation, with a robust incumbent WNS client base hungry to replace full-time equivalents (FTEs) with technology solutions,' he combined entity could compete on an equal footing with Accenture, and outcompete the Big 4 of consulting — PwC, EY, KPMG and Deloitte, Fersht noted."From a competitive perspective, another potential big win for Capgemini is its new positioning against the Big 4, which have traditionally dominated consulting and technology services. With WNS's operational expertise integrated into its offerings, Capgemini could deliver end-to-end transformation services that the Big 4 cannot – and at lower price points," the analyst analysts, and investors, are worried about the impact generative AI could have on the BPO sector, which Capgemini is looking to tap, noted brokerage house Morgan bear case is that AI would transform BPO from a people-intensive business to one that is much more highly automated and managed by software, the brokerage noted. This could lead to a fall in BPO revenues and expose incumbent vendors to competition from new entrants, it BPO space with generative AI is an opportunity that investors might favour, but there needs to be evidence that WNS is the right vehicle for such a change, Morgan Stanley while WNS is unlikely to prove transformational for Capgemini's business, the acquisition cost will weigh on the IT major's balance sheet for a couple of by British Airways in 1996 as a captive unit, WNS offers BPO and data analytics services to blue-chip clients, including Coca-Cola, T-Mobile, United Airlines, Aviva, British Gas, Virgin Atlantic Airways, M&T Bank, Centrica and McCain serves over 700 clients with a 64,000-strong workforce operating in 13 countries through 64 delivery reported a better-than-expected but marginal 0.6% drop in revenue at $1.31 billion for fiscal year 2025, with an 18.7% operating margin. Profit increased slightly to $170.1 million, from $147.5 million the previous year. Revenue has grown by around 9% in constant currency terms, on average, over the last three fiscal years. It also acquired for $63.4 million in the March quarter to expand its capabilities in data, analytics, and AI.
Business Upturn
28-05-2025
- Business
- Business Upturn
Infosys launches Agentic AI Foundry under Topaz to accelerate enterprise AI transformation
By Aditya Bhagchandani Published on May 28, 2025, 16:19 IST Infosys on Wednesday announced the launch of its Agentic AI Foundry, part of its Topaz™ platform, aimed at helping enterprises develop and deploy AI agents at scale. The solution is designed to support reliable, production-grade AI agents across business operations, IT, and customer ecosystems. The Foundry brings together a library of reusable components and pre-built agents, both horizontal and industry-specific, to simplify AI adoption. It enables enterprises to customize and integrate these agents across in-house or third-party platforms, avoiding vendor lock-in and supporting a future-ready, ethical AI architecture. 'At Infosys, we believe the future of innovation lies in harnessing the power of AI responsibly and effectively. Infosys Agentic AI Foundry is a game-changer in enterprise transformation,' said Balakrishna D. R. (Bali), EVP and Global Services Head, AI and Industry Verticals at Infosys. For instance, the company has deployed a multi-agent invoice automation solution in its finance team, improving productivity by over 50% and delivering significant cost savings. 'The line between human capabilities and AI-powered software is rapidly blurring. Infosys' approach to Agentic AI is a critical move to support enterprises under pressure to embed these capabilities into their experiences,' added Phil Fersht, CEO of HFS Research. Infosys also cited deployments at client organizations, such as a deep research agent reducing support resolution times by 50% and AI-powered audit agents enhancing financial record integrity. The initiative aligns with Infosys' broader AI-first approach, promising cost efficiency, innovation, and seamless adoption of evolving AI technologies. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Yahoo
21-05-2025
- Business
- Yahoo
AI Revolutionizes Non-Bank Mortgage Lending: Insights from HFS Research and Cognizant
New study highlights how 2025 will be a turning point as technology redefines experience, operations, and value across the mortgage lifecycle. Key Findings: 74% of non-bank lenders are betting on innovation to drive differentiation, while only 21% believe they are leading the pack—revealing a significant gap and opportunity to innovate. Agentic AI is becoming the next big play, merging GenAI's cognitive reasoning with automation's precision—ushering in task-fulfilling "agents" that scale beyond efficiency into execution. Only 51% of lenders feel fully prepared for compliance risk, with some receiving up to 1,700 regulatory alerts in 2024—25% with direct business impact. Demonstrating ROI is critical. Intelligent Document Processing (IDP) is winning over lenders for its fast returns—especially where paper still rules. Outsourcing is being redefined. Full-service partnerships are expected to rise from 30% to 42% by 2026, measured by growth outcomes instead of simply on cost. Automation will reach 68% of mortgage operations by 2026, signaling a shift from task-level wins to blending technology, human expertise, and continuous improvement into an intuitive tech-to-ops cycle in mortgage operations. NEW YORK, May 21, 2025 /PRNewswire/ -- In a rapidly evolving housing economy, non-bank mortgage lenders are facing a wake-up call. A new joint study by HFS Research and Cognizant, "Reinventing the Non-Bank Mortgage Lending Journey in the Age of AI," reveals an industry grappling with operational fatigue, regulatory pressure, and fast-moving tech disruptions—while a small but bold segment rewrites the mortgage playbook. Drawing insights from 257 non-bank lenders and ecosystem partners, the report delivers a sobering yet hopeful look at the next chapter for mortgage lending. From the emergence of Agentic AI to the reconfiguration of outsourcing strategies, lenders are being challenged to trade reactive cost-cutting for purposeful innovation. "The fundamentals of lending haven't changed—the loan is still a loan. What's changed is the speed, intelligence, and precision with which it's delivered. This is no longer just about access to capital—it's about how seamlessly, securely, and smartly capital flows through digital channels," says Saurabh Gupta, President, Research and Advisory Services, HFS Research. "The ones who go all-in—building digital-first, modular, and intelligent operations—will define the next era of mortgage lending. The rest? They risk being left behind." Powerful Data-Driven Insights: The research reveals that although 2025 is being eyed as a rebuild year, many lenders are stuck playing defense. As lending platforms modernize, access to mortgage capital is becoming faster, smarter, and more modular. Yet, only 21% of lenders consider themselves true innovators. The rest? They're either chasing parity or struggling to catch up. Compliance is also hitting a breaking point. One executive shared they received over 1,700 regulatory alerts last year—nearly one in four with direct business consequences. The result: compliance is now a 24/7 operation, and tech investment is the only scalable solution. Divya Iyer, Practice Leader, BFSI, HFS Research, adds, "We're seeing real momentum around Agentic AI—where GenAI meets the execution muscle of automation. But it's not the only force driving change. Technologies like IDP are bridging the gap in paper-heavy workflows, proving that meaningful transformation doesn't have to wait for full digital maturity." What Lenders Need to Do Next: Move beyond legacy constraints. 58% of lenders still can't support real-time integration—limiting data agility and delaying decision-making. Prioritize technology with measurable outcomes. Tools like IDP, AI underwriting, and cybersecurity are driving rapid ROI, while GenAI is expanding into core operations. Redefine outsourcing partnerships. Lenders must move beyond tactical cost-cutting to leverage partners for platform modernization, AI deployment, and full-service scalability. Focus on value creation—not just efficiency. The winners will blend automation, data platforms, and talent into a cohesive tech-to-ops cycle. "In the rapidly evolving landscape of non-bank mortgage lending, there is a critical need for innovation and agility," said Ajay Pandita, Senior Vice President and Financial Services, Fintech and Insurance Business Unit Leader, of Cognizant. "As we navigate through operational fatigue, regulatory pressures, and technological disruptions, it is imperative that we embrace purposeful innovation and redefine our strategies. The emergence of Agentic AI and IDP are just the beginning. By prioritizing technology with measurable outcomes and leveraging full-service partnerships, we can transform the mortgage lending journey and lead the industry into a new era of efficiency and value creation." Download the full report: Reinventing the Non-Bank Mortgage Lending Journey in the Age of AIReinventing non-bank mortgage lending journey in the age of AI - HFS Research About HFS ResearchHFS Research is a leading global research and advisory firm that helps Fortune 500 companies navigate IT and business transformation with fearless insights and actionable strategies. With unrivaled access to Global 2000 executives, HFS empowers organizations to make confident technology and service decisions that drive competitive advantage. For more information, visit About CognizantCognizant (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 or @cognizant. Forward-Looking Statements This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to the adoption of generative and/or agentic artificial intelligence, the effects of such artificial intelligence on the mortgage lending industry and the competitive opportunities in the marketplace. These statements are neither promises nor guarantees but are the findings of the study discussed above and remain subject to a variety of risks and uncertainties, many of which are beyond Cognizant's control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause outcomes to differ materially from those expressed or implied include general economic conditions, the impact of technological development and competition, the competitive and rapidly changing nature of the markets Cognizant and its clients compete in, and the other factors discussed in Cognizant's most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law. 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Yahoo
21-05-2025
- Business
- Yahoo
AI Revolutionizes Non-Bank Mortgage Lending: Insights from HFS Research and Cognizant
New study highlights how 2025 will be a turning point as technology redefines experience, operations, and value across the mortgage lifecycle. Key Findings: 74% of non-bank lenders are betting on innovation to drive differentiation, while only 21% believe they are leading the pack—revealing a significant gap and opportunity to innovate. Agentic AI is becoming the next big play, merging GenAI's cognitive reasoning with automation's precision—ushering in task-fulfilling "agents" that scale beyond efficiency into execution. Only 51% of lenders feel fully prepared for compliance risk, with some receiving up to 1,700 regulatory alerts in 2024—25% with direct business impact. Demonstrating ROI is critical. Intelligent Document Processing (IDP) is winning over lenders for its fast returns—especially where paper still rules. Outsourcing is being redefined. Full-service partnerships are expected to rise from 30% to 42% by 2026, measured by growth outcomes instead of simply on cost. Automation will reach 68% of mortgage operations by 2026, signaling a shift from task-level wins to blending technology, human expertise, and continuous improvement into an intuitive tech-to-ops cycle in mortgage operations. NEW YORK, May 21, 2025 /PRNewswire/ -- In a rapidly evolving housing economy, non-bank mortgage lenders are facing a wake-up call. A new joint study by HFS Research and Cognizant, "Reinventing the Non-Bank Mortgage Lending Journey in the Age of AI," reveals an industry grappling with operational fatigue, regulatory pressure, and fast-moving tech disruptions—while a small but bold segment rewrites the mortgage playbook. Drawing insights from 257 non-bank lenders and ecosystem partners, the report delivers a sobering yet hopeful look at the next chapter for mortgage lending. From the emergence of Agentic AI to the reconfiguration of outsourcing strategies, lenders are being challenged to trade reactive cost-cutting for purposeful innovation. "The fundamentals of lending haven't changed—the loan is still a loan. What's changed is the speed, intelligence, and precision with which it's delivered. This is no longer just about access to capital—it's about how seamlessly, securely, and smartly capital flows through digital channels," says Saurabh Gupta, President, Research and Advisory Services, HFS Research. "The ones who go all-in—building digital-first, modular, and intelligent operations—will define the next era of mortgage lending. The rest? They risk being left behind." Powerful Data-Driven Insights: The research reveals that although 2025 is being eyed as a rebuild year, many lenders are stuck playing defense. As lending platforms modernize, access to mortgage capital is becoming faster, smarter, and more modular. Yet, only 21% of lenders consider themselves true innovators. The rest? They're either chasing parity or struggling to catch up. Compliance is also hitting a breaking point. One executive shared they received over 1,700 regulatory alerts last year—nearly one in four with direct business consequences. The result: compliance is now a 24/7 operation, and tech investment is the only scalable solution. Divya Iyer, Practice Leader, BFSI, HFS Research, adds, "We're seeing real momentum around Agentic AI—where GenAI meets the execution muscle of automation. But it's not the only force driving change. Technologies like IDP are bridging the gap in paper-heavy workflows, proving that meaningful transformation doesn't have to wait for full digital maturity." What Lenders Need to Do Next: Move beyond legacy constraints. 58% of lenders still can't support real-time integration—limiting data agility and delaying decision-making. Prioritize technology with measurable outcomes. Tools like IDP, AI underwriting, and cybersecurity are driving rapid ROI, while GenAI is expanding into core operations. Redefine outsourcing partnerships. Lenders must move beyond tactical cost-cutting to leverage partners for platform modernization, AI deployment, and full-service scalability. Focus on value creation—not just efficiency. The winners will blend automation, data platforms, and talent into a cohesive tech-to-ops cycle. "In the rapidly evolving landscape of non-bank mortgage lending, there is a critical need for innovation and agility," said Ajay Pandita, Senior Vice President and Financial Services, Fintech and Insurance Business Unit Leader, of Cognizant. "As we navigate through operational fatigue, regulatory pressures, and technological disruptions, it is imperative that we embrace purposeful innovation and redefine our strategies. The emergence of Agentic AI and IDP are just the beginning. By prioritizing technology with measurable outcomes and leveraging full-service partnerships, we can transform the mortgage lending journey and lead the industry into a new era of efficiency and value creation." Download the full report: Reinventing the Non-Bank Mortgage Lending Journey in the Age of AIReinventing non-bank mortgage lending journey in the age of AI - HFS Research About HFS ResearchHFS Research is a leading global research and advisory firm that helps Fortune 500 companies navigate IT and business transformation with fearless insights and actionable strategies. With unrivaled access to Global 2000 executives, HFS empowers organizations to make confident technology and service decisions that drive competitive advantage. For more information, visit About CognizantCognizant (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 or @cognizant. Forward-Looking Statements This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to the adoption of generative and/or agentic artificial intelligence, the effects of such artificial intelligence on the mortgage lending industry and the competitive opportunities in the marketplace. These statements are neither promises nor guarantees but are the findings of the study discussed above and remain subject to a variety of risks and uncertainties, many of which are beyond Cognizant's control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause outcomes to differ materially from those expressed or implied include general economic conditions, the impact of technological development and competition, the competitive and rapidly changing nature of the markets Cognizant and its clients compete in, and the other factors discussed in Cognizant's most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law. View original content to download multimedia: SOURCE HFS Research
Yahoo
13-05-2025
- Business
- Yahoo
Enterprises eye AI assistants to modernize systems
This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter. Enterprises are turning to generative AI tools to drive modernization and cut through technical debt, according to Publicis Sapient. The digital consulting firm commissioned HFS Research to survey more than 600 IT and business leaders for a report published Thursday. Four in 5 respondents expect generative AI coding assistants to help them break free from managing outdated systems by documenting legacy applications, rewriting old code and automating software testing, the report found. Technical debt is an expensive headache, accounting for $1.5 trillion to $2 trillion in spending among Global 2000 companies, according to HFS Research. 'Tech debt isn't just a weight — it's a ticking time bomb that's threatening the future of global enterprises,' the firm's Chief Analyst and CEO Phil Fersht said in the report. As coding assistants rose to the top of a heap of generative AI use cases with ROI potential, vendors mobilized to deploy tools trained to decipher and refactor decades-old applications. IBM taught watsonx more than 100 programming languages and trained its open model to translate COBOL applications into Java. AWS trained its AI assistant, Amazon Q Developer, to build applications and set the tool loose on mainframe modernization last year. As cloud and enterprise software vendors rolled out similar capabilities, banking became a proving ground for the technology, according to Accenture. Goldman Sachs saw its army of 12,000 developers achieve efficiency gains of roughly 20% with GitHub Copilot, the company's CIO Marco Argenti told CIO Dive last month. Bank of America and Citigroup saw similar returns on AI investments. Enterprises across industries can cut years off of modernization initiatives by harnessing the technology, according to Sheldon Monteiro, Publicis Sapient EVP and chief product officer. 'AI really is a jackhammer,' Monteiro said in an interview. 'CIOs need to be thinking about this in terms of some pretty major concrete breaking.' Publicis Sapient inked a five-year partnership with AWS to build AI-powered modernization tools in March. In addition to leveraging the hyperscaler's cloud-based services, the alliance aims to expand the reach of the Sapient Slingshot software development platform. The modernization opportunities are vast, according to HFS Research. A $1.5 trillion IT industry has grown up around servicing rather than eliminating technical debt, the firm estimates. Enterprises spend an average of nearly 30% of IT budgets maintaining legacy technologies, the report found. Yet, fewer than one-third of respondents said their organization has modernized core applications. 'Something's broken in the way clients are buying IT services and the way the service industry has been incentivized,' Monteiro said, pointing to a tendency to see staff augmentation as a means of containing technical debt. Monteiro added, 'If modernization is going to take 10 years to complete, what CIO is going to look at that with any sense that it can get done within their tenure?' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
