"Cognizant can confirm that a security incident involving our internal systems, and causing service disruptions for some of our clients, is the result of a Maze ransomware attack," Cognizant said in a statement.
It added that its internal security teams, supplemented by leading cyber defense firms, are actively taking steps to contain this incident.
A ransomware typically logs users out of their own systems through forced encryption of data and asks them to pay a ransom if they want to access the encrypted data.
"Cognizant has also engaged with the appropriate law enforcement authorities," the statement noted.
The incident comes at a time when businesses have been disrupted by coronavirus pandemic that has forced companies to turn to initiatives like work from home to ensure business continuity.
This has also led to concerns around security of data.
"Based on present information, we don't believe the reaction to the COVID-19 pandemic or Cognizant's efforts to enable associates to work from home facilitated this incident," a Cognizant spokesperson said.
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