Cognizant to buy Australian SAP specialist DyFlex Solutions to expand AI services

Cognizant, the US-listed IT services company with most of its workforce in India, has signed a definitive agreement to acquire DyFlex Solutions, an Australian firm that implements and runs SAP business software, the company announced on October 21, 2026. DyFlex is an SAP Platinum Partner with more than 300 employees in Australia and New Zealand and a delivery team in the Philippines. Financial terms were not disclosed. Cognizant expects the deal to close in the first quarter of 2027, subject to regulatory approvals, and the two companies will operate separately until then.

SAP makes the enterprise resource planning (ERP) software that many large companies use to run their finances, supply chains, payroll and plant maintenance. Moving a company from older SAP systems to newer cloud versions is a long, expensive job, and it keeps thousands of consultants busy worldwide. Analysts tracking the deal have linked its timing to SAP's 2027 deadline for ending mainstream maintenance of its older software, which is pushing many customers to plan upgrades now.

For Cognizant, the purchase buys local depth in a region where clients want consultants on the ground. DyFlex's clients are concentrated in mining, energy and utilities, sectors that matter greatly to the Australian economy and run heavy asset-maintenance operations on SAP. "Clients across Australia and New Zealand are seeking practical pathways to modernise core platforms while adopting cloud, data and AI capabilities," said Carla Ramchand, Cognizant's Managing Director for Australia and New Zealand.

The deal also shows how Indian-heavy IT services firms are positioning for AI. Rather than selling only coding and maintenance hours, which AI tools are starting to automate, they are buying specialist consulting firms that own client relationships and know specific industries, and then layering AI tools on top. "DyFlex brings deep SAP consulting capabilities that are key to reimagining SaaS, modernising clients' business landscapes and driving operational performance," said Roshan Subudhi, Senior Vice President and Head of Intelligent Enterprise Platforms at Cognizant. SaaS, or software as a service, refers to software delivered over the internet on subscription.

For India, the deal matters because large parts of the delivery work on such contracts are typically handled from offshore centres. Cognizant has not said how the acquisition will change its staffing. DyFlex chief executive Evan Mantis called the deal "an exciting next chapter" for the company's clients and employees.

Short-term: Nothing changes for clients until the deal closes; the two firms will run separately until regulatory approvals come through, expected in the first quarter of 2027.

Long-term: Cognizant gains a stronger SAP practice in Australia and New Zealand and a base to sell AI-led upgrade projects to mining, energy and public sector clients facing SAP's 2027 timeline.

Who is affected: DyFlex employees and clients; Cognizant's SAP teams, including delivery staff in India; Australian and New Zealand companies planning SAP upgrades; and rival IT service providers competing for the same work.

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