New Delhi, Feb. 16 -- Cognizant Technology Solutions Corp.'s second-largest acquisition is facing an uncertain road, as a big chunk of its work comes from US federal contracts, many of which are now under scrutiny.

Belcan, which Cognizant acquired for $1.3 billion in June 2024, gets more than three-fourths of its business from commercial aerospace, defence and space, whereas 40% comes from US federal contracts. With the US Department of Government Efficiency (DOGE) led by Elon Musk clamping down on government spending, sectors that contribute to Belcan's growth may suffer.

"The new administration clearly is committed to cutting federal spending," said Peter Bendor-Samuel, founder and chief executive of Everest Group. "The commitment to ...