Cognizant acquires 49% stake in ReD Associates

Coimbatore: Cognizant has announced an exclusive strategic partnership with and acquisition of an ownership interest of 49% in ReD Associates, a leading strategic consulting firm specialising in the use of human sciences to help business leaders better understand customer behaviour.

The IT (information technology) major did not disclose the terms of the investment. Based in Copenhagen and New York, ReD Associates has worked with leading global companies, including Ford, Adidas, Intel, Samsung, Novo Nordisk, Pernod Ricard and many others, to help them form a clear strategy based on a rich understanding of consumer behaviour using social sciences research methods and thinking.

As part of this exclusive relationship, strategy experts, behavioural economists, anthropologists, sociologists, and ethnographers from ReD Associates will work with digital strategists, designers, technologists, and data scientists from Cognizant Digital Works to help businesses connect more closely to real-world consumer behaviours and experiences.

ReD Associates will retain its management team, clients, and projects and operate independently. "Digital technologies are reshaping most aspects of everyday life including how people work, manage their health, are educated, get entertained, shop, and connect with each other," Cognizant said.

"Success in this new era requires new business models and a deeper understanding of how people are engaging with technology," it said.

"The philosophy behind our approach to research and meaningful insights is the science around understanding how things are experienced," said Christian Madsbjerg, co-founder, ReD Associates.

"By joining forces with Cognizant, we are able to expand our business and believe that we can create an entirely new model for how digital strategy is conceived and, most importantly, executed," he said.

"There is a natural fit between our companies and with the Cognizant Digital Works approach in combining strategy, design, technology, and industry knowledge to create, prototype, and deliver compelling digital transformation for clients," said Mikkel B Rasmussen, co-founder, ReD Associates.

"While it may sound counter-intuitive, 'being digital' also means being more human," said Gajen Kandiah, executive vice president, Cognizant Digital Works.

"A richer understanding of human behaviour can unlock new opportunities for our customers," he said. "Based on a deep understanding of what people really want and need, we can use technology to provide more meaningful and engaging experiences," Kandiah stated.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.