Infosys, the prominent Bengaluru-based IT services and consulting firm, has announced its intention to vigorously contest a trade secrets lawsuit filed by rival Cognizant. The legal dispute, currently unfolding in a Texas federal court, centers on allegations that Infosys misappropriated trade secrets related to Cognizant’s healthcare insurance software.
In a statement issued on August 23, 2024, Infosys categorically denied the allegations made by Cognizant’s subsidiary, Cognizant TriZetto. The lawsuit accuses Infosys of unlawfully utilizing TriZetto’s software, particularly the Facets and QNXT platforms, to develop a product referred to as “Test Cases for Facets.” Cognizant claims that Infosys repackaged TriZetto’s data to create new software, thereby breaching confidentiality agreements and legal protections.
Infosys responded firmly to the allegations, stating, “Infosys is aware of the lawsuit. We deny all allegations and will defend our position in the court.” The company’s spokesperson emphasized its commitment to upholding legal and ethical standards and contesting the charges through legal channels.
This lawsuit adds another layer to the fierce competition between Infosys and Cognizant, both of which are nearing $20 billion in revenue. The rivalry is further intensified by personal connections; Cognizant’s CEO, Ravi Kumar S, previously served as president and deputy Chief Operating Officer at Infosys until October 2022. Additionally, Cognizant recently appointed Rajesh Varrier, a former Infosys executive, as its new India Chairman and Managing Director.
The legal conflict comes on the heels of Infosys’s own allegations against Cognizant for allegedly poaching key executives. Infosys documented these claims in a letter last year, reflecting the ongoing tensions within the IT sector. Similar disputes have also been seen with other Indian IT firms, such as Wipro, which recently settled a non-compete lawsuit with Cognizant involving a $505,087 payment.
As the IT industry faces a challenging demand environment with multi-decade low revenues and profits, these legal skirmishes highlight the intense competitive dynamics within the sector. The outcome of this lawsuit could have significant implications for both companies as they navigate the complex and evolving landscape of the global IT services market.
hii Aditi Sahu this side..
As an author and writer specializing in investment and finance , I am dedicated to delivering insightful articles and news stories that inform and engage the investment community . My focus is on providing timely and relevant content that covers market trends , innovative strategies , and key financial development . My goal is to equip investors with the knowledge and insights needed to make informed decisions and succeed in a dynamic financial environment.
