As a part of a global long-term Master Services Agreement, insurance services company CNO is selling its Indian operations to Cognizant Technology Solutions. The financial details of the deal remain undisclosed.
Under the agreement, Cognizant will provide services to CNO and after the transition period, assume CNO’s application development, maintenance, and testing functions as well as select IT infrastructure operations. Cognizant will also take over all CNO operations located in Hyderabad, India.
The deal sees movement of 640 IT positions from CNO to Cognizant, roughly 240 of which are U.S.-based.
The sale is expected to deliver a run-rate expense savings of approximately $10 Mn annually to CNO.
Majmudar & Partners advised CNO on Indian law matter while Alston & Bird, US, represented CNO on US law matters, and Cognizant was represented by its inhouse team.
CNO Financial Group, Inc. (CNO) serves as a holding company for a group of insurance companies operating throughout the United States, which develops, markets and administers health insurance, annuity, individual life insurance and other insurance products. The Company’s operating segments include Bankers Life, Washington National and Colonial Penn, which are defined on the basis of product distribution.
Cognizant which provides information technology, consulting, and business process outsourcing services across diverse sectors has acquired 22 companies since its inception in 1994. In 2014, itself it acquires four firms.
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