New Delhi, Oct. 5 -- Cognizant Technology Solutions Corp. is setting up a dedicated business to target mid-sized companies as artificial intelligence (AI) puts pressure on the large outsourcing contracts that have long powered the world's biggest tech services firms.

The Nasdaq-listed company on Monday launched Cognizant Activate, a dedicated business unit to manage the IT needs of companies with $1-5 billion in revenue.

The move makes Cognizant the latest major IT services company to target the mid-market, following similar moves by Accenture Plc and HCL Technologies Ltd (HCLTech) in the past six months.

"Emerging enterprises with high growth face many of the same pressures as large enterprises, including legacy technology, rising cyb...