Cognizant’s Mobica acquisition helps clients unlock their IoT potential

In today’s rapidly evolving digital landscape, businesses must continuously adapt and innovate to stay ahead of the curve. One key area driving this transformation is the internet of things (IoT), which has become increasingly relevant as companies seek to improve efficiency, customer experiences, and revenue growth. To address this growing demand, Cognizant acquired Mobica, an IoT software engineering services firm, providing enterprises with end-to-end IoT solutions.

IoT Integration is becoming crucial for service providers

Recent HFS Pulse survey data in Exhibit 1 shows that around 33% of enterprises have turned to a service provider partner to deliver IoT within their organization. In simplest terms, we can define IoT as internet-connected physical objects exchanging data. It’s widely adopted across various industries because the data it gathers and reports help businesses optimize processes, enhance communication, and improve overall operational efficiency. As IoT continues to gain traction, service providers are investing in innovative solutions to cater to their clients’ evolving needs, meaning enterprises have a growing catalog of potential partners to guide them through their IoT journey. Expanding the range of partners leads to a more competitive market, fostering innovation and better solutions for enterprises adopting IoT technologies.

Exhibit 1: Service providers bring IoT to 33% of their client relationships

Sample: 1,500 executives across Global 2000 enterprises, HFS Pulse Dashboard
Source: HFS Research, 2023

Expanding IoT capabilities: Real-world impact and opportunities

Mobica, headquartered in Manchester, United Kingdom, is known for its expertise in the entire software development life cycle. Mobic’s extensive set of skills allows it to seamlessly integrate all the necessary competencies to deliver IoT solutions, including proficiency in embedded systems at the device level, gateway protocols, and cloud-based backend infrastructure. By bringing together expertise in these areas, Mobic can design and implement complex IoT systems that meet the needs of its clients. It has consistently provided connected software engineering services to prominent brands such as Google, Meta, ABB, Samsung, and BMW, and it has developed innovative solutions that improve daily life. Following the acquisition by Cognizant, around 900 employees, including 550 engineers from Poland, will become part of Cognizant’s team in Europe and North America. Established in 2004, Mobica operates in Manchester, California, Washington, Warszawa, Lodz, Bydgoszcz, Szczecin, Lublin, Rzeszow, Munich, Poznan, and Kraków.

HFS Research views this acquisition positively. Exhibit 2 details our considerations. A distinguishing feature of Mobica is its talent-as-a-service (TaaS) model, which supplies adaptable and on-demand software engineering and development expertise. This approach allows companies to effectively and economically expand their software engineering competencies. It provides additional capacity for Cognizant in the face of fierce competition to secure and retain exceptional talent. Mobica’s TaaS-based agreements cater to businesses with variable workloads, those seeking specialized skills without long-term commitments, companies aiming to cut costs by lessening reliance on traditional employment models, or risk-averse organizations that have faced challenges with poor hiring choices in the past.

Exhibit 2: Acquisition upsides and hurdles: Exploring potential benefits and challenges

Source: HFS Research, 2023

The Bottom Line: Mobica move makes Cognizant better equipped to help enterprises on their IoT journeys.

Cognizant’s strategic move to acquire Mobica demonstrates its commitment to helping enterprise clients harness the full potential of IoT technology. By integrating Mobica’s expertise in IoT, firmware, and embedded systems, Cognizant expands its capabilities to offer a comprehensive range of digital transformation services.

To thrive in an increasingly connected world, enterprises must consider incorporating IoT solutions into their digital transformation strategies. To do so, evaluate your current IoT capabilities and explore partnership opportunities to capitalize on the benefits of IoT and maintain a competitive edge in the rapidly evolving digital landscape.